Oracle, the Silicon Valley enterprise software giant, will become TikTok's technology partner and responsible for "hosting all U.S. user data and securing associated computer systems to ensure USA national security requirements are fully satisfied", TikTok said in a statement on Saturday shortly after President Trump spoke.
So, when the Trump administration moved to block and severely restrict certain services on WeChat - as well as Chinese-owned TikTok - Friday, chaos and anxiety ensued as people scrambled how to communicate and exchange funds with loved ones across oceans.
"The plaintiffs' evidence reflects that WeChat is effectively the only means of communication for many in the community, not only because China bans other apps, but also because Chinese speakers with limited English proficiency have no options other than WeChat", Beeler wrote, claiming that the executive order is an infringement on First Amendment rights.
Donald Trump has given his "blessing" to a proposed deal between Oracle and Walmart that will allow the video app TikTok to continue operating in the United States.
The proposal, which would give Oracle and other investors minority ownership of a new company called TikTok Global, still needs approval from regulators in China, where TikTok's parent ByteDance Ltd.is based. Both Oracle and Walmart will take part in a TikTok Global pre-IPO financing round in which they can take up to a 20% cumulative stake in the company. "Each collects vast swaths of data from users, including network activity, location data, and browsing and search histories", the Commerce Department said. An unnamed official for the Committee on Foreign Investment in the United States (CFIUS) says, "ByteDance is still the biggest dog in this deal".
He said Oracle's expertise in database management and privacy protection, coupled with Walmart's hunger for leapfrogging into the social commerce realm, would "add tangible flavor" to the deal.
Xinhua News Agency reported on Saturday that TikTok disclosed some details about the three-party agreement, which is being considered by the White House. "I approve the deal in concept".
In the release, Oracle said it plans to combine its cloud technology with measures such as code reviews and monitoring to ensure that data for U.S. users of TikTok is kept secure and private. Free-speech advocates blasted the Trump administration's bans on TikTok and WeChat, saying those violated the First Amendment rights of U.S. users.
US Magistrate Judge Laurel Beeler said the ban raised serious questions related to the constitution's first amendment, guaranteeing free speech.