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The blocking of TikTok in the US was scheduled for today, but now there is good news for the nearly 100 million Americans who use the popular app. The Chinese ByteDance, owner of TikTok, has finally reached an agreement with Oracle, one of those involved in the negotiations. The deal was also made with Walmart.
In this way, for now the fans can breathe a sigh of relief, since after this contract, the blocking and prohibition of the application in the USA is postponed. If this agreement is not honored, TikTok could no longer be installed on smartphones in Donald Trump’s country today.
Oracle deal postpones U.S. ban on TikTok
Today would be the day that President Donald Trump's term for TikTok to reach a solution ended. Otherwise, as of this Sunday, the short videos application would no longer be available for distribution on the AppStore and Google Play. This situation even made the current executive director of the application, Vanessa Pappas, ask for the union of social networks against this ban.
But ByteDance announced that it has reached an agreement with the North American companies Oracle and Walmart and, therefore, this ban is postponed for now.
This was followed by a primary agreement with Oracle, which became a technology partner, and with Walmart for business purposes.
Through the agreement now concluded, it is stipulated that the two companies, Oracle and Walmart, will be able to buy up to 20% of TikTok, before entering the stock market, which should happen in 2021.
According to a spokesperson:
We are pleased that the proposal from TikTok, Oracle, and Walmart solves the security issues raised by the US administration and issues related to the future of TikTok in the US.
Donald Trump accepted the deal
Donald Trump has always been at the center of this entire controversial TikTok situation in America. And blocking the app was just the implementation of the executive order that Trump had already signed.
Now, the US president has approved the present agreement between the three companies, leaving the situation of TikTok in the US more peaceful for now.
According to Trump, through this agreement it will be possible to create a TikTok company in the United States, possibly based in the state of Texas. This company will hire at least 25 thousand people and contribute 5 billion dollars (~ 4.2 billion euros) to a fund dedicated to the education of the American population.
The president of the United States adds that:
This is the contribution I have been asking for.
Once the agreement is closed, Oracle will be responsible for all information of US users in the application, as well as the protection of computer systems to ensure compliance with the standards required by the Trump administration for national security. Walmart will provide TikTok with digital commerce platforms and other business services.
According to the US Department of Commerce, this agreement postpones the ban on new downloads of the app until at least September 27. The total ban is scheduled for December 11. The department said this decision was a consequence of "recent positive developments."
Currently, TikTok has more than 100 million North American users and close to one billion worldwide.
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