TikTok Deal Finalized After Months of Negotiations
▼ Summary
– The TikTok USDS Joint Venture’s primary mandate is to secure U.S. user data, apps, and the algorithm through comprehensive privacy and cybersecurity measures.
– U.S. user data will be stored and protected within Oracle’s secure U.S. cloud environment under a program audited by third-party experts.
– The content recommendation algorithm will be retrained on U.S. data and secured within Oracle’s U.S. cloud infrastructure.
– The Joint Venture will have decision-making authority for U.S. trust and safety policies, content moderation, and app security protocols.
– The venture’s ownership includes three 15% managing investors, a consortium of other investors, and ByteDance retaining a 19.9% stake.
After months of complex discussions, a definitive agreement has been reached to establish the TikTok USDS Joint Venture. This new entity is designed to comprehensively protect the data, applications, and core algorithm for American users. Its mission centers on implementing rigorous data privacy and cybersecurity protocols, safeguarding the domestic content landscape with strong trust and safety policies, and ensuring ongoing accountability through detailed transparency reports and independent third-party audits.
A primary function of the Joint Venture is data protection. All U.S. user data will be housed and managed within Oracle’s secure cloud infrastructure located in the United States. The organization will run a complete data privacy and cybersecurity program, which will be regularly examined and certified by independent cybersecurity experts. This program is committed to following leading industry standards, including frameworks from the National Institute of Standards and Technology (NIST) and the Cybersecurity & Infrastructure Security Agency (CISA), alongside the ISO 27001 certification.
Regarding the platform’s core functionality, algorithm security is a major focus. The content recommendation algorithm will be retrained, rigorously tested, and updated exclusively using U.S. user data. This critical system will also be secured within Oracle’s U.S. cloud environment, isolating it from external influence.
For the applications themselves, the Joint Venture will enforce strict software assurance protocols. This involves the continuous review and validation of source code, a process supported by its designated Trusted Security Partner, Oracle. This ongoing scrutiny aims to identify and mitigate potential vulnerabilities.
The entity will also hold full decision-making authority for trust and safety policies and content moderation. This responsibility ensures the Joint Venture can directly safeguard the American content ecosystem, enforcing community guidelines and managing content to protect users.
The ownership structure of the TikTok USDS Joint Venture features three managing investors, Silver Lake, Oracle, and MGX, each holding a fifteen percent stake. They are joined by a consortium of additional investors, including the Dell Family Office, Vastmere Strategic Investments (an affiliate of Susquehanna International Group), Alpha Wave Partners, Revolution, Merritt Way, Via Nova (an affiliate of General Atlantic), Virgo LI, Inc., and NJJ Capital. ByteDance, TikTok’s parent company, will retain a 19.9 percent ownership share in the newly formed venture.
(Source: The Verge)
