TikTok deal raises questions about compliance with US laws

The company announced Tuesday that its US service is now part of a separate entity, with Oracle holding primary control over data storage and management. The joint venture, known as TikTok USDS Joint Venture LLC, marks a significant step towards compliance with the US law aimed at banning the app. However, lawmakers who initially passed the legislation appear uncertain about whether the arrangement meets all necessary requirements, sparking concerns that the deal may not fully address the concerns raised by regulators. Under the new structure, ByteDance, TikTok’s parent company, holds a 19.9 percent stake in the joint venture, with Oracle and investment firms Silver Lake and MGX taking majority control over US data storage and management. The arrangement is designed to ensure that sensitive user information is stored separately from parent company operations. The deal comes nearly two years after lawmakers initially passed legislation aimed at banning TikTok due to concerns over data security and potential ties to the Chinese government. While the new structure appears to address some of these concerns, regulators and lawmakers remain uncertain about whether the arrangement fully complies with US laws and regulations.