The social video firm revealed on Friday, a move from past practice that relied on the company’s data centers in the U.S. and Singapore.
The change is meant to satisfy worries that the corporation would pass personal data about U.S. consumers to the authorities in China. “For more than a year, we’ve been working with Oracle on many initiatives as part of our business agreement to further secure our app, systems, and the security of U.S. user data,” TikTok wrote in a blog post.
“We’ve now accomplished a critical milestone in that work: we’ve shifted the default storage location of U.S. user data. Today, 100 percent of U.S. user traffic is being routed to Oracle Cloud Infrastructure.”
TikTok had already been doing some work with Oracle (NYSE: ORCL), but this solidifies a major win for the Oracle Cloud, which is trying to compete with the three large U.S. public cloud players: Amazon Web Services, Microsoft MSFT +1.09 percent Azure, and Alphabet GOOGL +1.05 percent’s Google Cloud.
TikTok said it currently utilizes its U.S. and Singapore data centers for backup, but aims to ultimately erase U.S. user data from its servers “and completely pivot” to Oracle cloud servers in the U.S.
During the Trump administration, TikTok and its China-based company ByteDance came under examination as possible security hazards. In September 2020, as part of an agreement to resolve a lawsuit between TikTok and the U.S. government, Oracle agreed to act as a “trusted technology partner” to the firm.
President Donald Trump had threatened to shut down TikTok’s U.S. activities unless they were bought by an American bidder. ByteDance at one time turned down an offer from Microsoft (MSFT) and Walmart (WMT) to purchase TikTok’s U.S. business. It looked at the time that Oracle may purchase the firm instead, but no acquisition deal was struck.
In its statement Friday, TikTok claimed it was making other modifications in its operations to meet U.S. security concerns. The business stated that a new department with U.S.-based leadership would “solely handle U.S. user data.” The business claimed it made measures to “provide greater protections, and further reduce data transmission outside of the U.S.”
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