• by Colin Kirkland , March 19, 2025

Since emerging as the most likely company to partner with TikTok in the U.S., Oracle is considering a sale of the social media company's stateside operations while potentially allowing for China-based owner ByteDance to remain in full control of the app's powerful algorithm.

According to Bloomberg, “a proposal was circulated within the Trump administration last week that would have Oracle work with US buyers to vouch for the safety of users’ data, according to the people, who discussed the plan on condition of anonymity citing its confidentiality.”

This proposed deal would see the development of an updated version of TikTok specific to the U.S. that “would not contain a back door that China’s government could exploit.”

User protections are a key area of focus moving forward with the deal, with user data security essential to addressing concerns included in the recently passed Foreign Adversary Controlled Applications Act.

The law, which was passed in January, demands that foreign-owned entities do not own more than 20% of the app, and do not possess direction or control over the platform.

In addition, the law states that foreign-owned entities do not have an “operational relationship” with regard to its content recommendation algorithms or data sharing.

Therefore, with regard to recent reports on the developing deal between the U.S., TikTok, ByteDance and Oracle, there are elements that do not satisfy the law. The deal is already being met with scrutiny in Washington.

According to The New York Times, Oracle met with top aides on Capitol Hill on Tuesday to discuss the legitimacy of working with ByteDance without posing a national security risk.

“The law is clear: Any deal must eliminate Chinese influence and control over the app to safeguard our interests,” Representative John Moolenaar -- a Michigan Republican who heads the House committee focused on China – wrote in The National Review this week.

While Vice President J.D. Vance is confident that the White House will reach a deal by the April 5 deadline, it is unlikely that this current deal will satisfy the new law. It is also unlikely that potential changes made to satisfy the law would convince ByteDance to agree to a deal.

Since the U.S. government has proposed a TikTok selloff, ByteDance has consistently stated that it would not agree to selling TikTok's algorithm to the U.S.

If this current deal is not finalized with Oracle, President Trump may further extend the deadline.