TikTok finalizes deal to create new US entity and avoid ban
TikTok has officially completed a deal to establish a US-based entity in an effort to satisfy national security concerns and avoid a ban in the country. The arrangement sees a consortium led by Oracle taking ownership of TikTok’s US operations, with oversight of data storage and content moderation. Commercial operations such as advertising and e-commerce will remain under TikTok’s existing US business. This deal closely resembles Apple’s iCloud setup in China, where a local partner manages infrastructure under regulatory supervision.
This agreement marks the conclusion of a six-year regulatory saga and sets a precedent for foreign tech firms operating under heightened geopolitical scrutiny.
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