Is TikTok a Chinese Cambridge Analytica data bomb waiting to explode?

hawki · Sep 13, 2020

FWIW:

"Oracle has leapfrogged Microsoft as the most likely buyer of TikTok's U.S. operations, according to multiple sources familiar with the process. But the situation remains very fluid, including the possibility of no deal at all..."

https://www.axios.com/tiktok-oracle-microsoft-odds-7b8b2739-5c19-4015-ad4b-63e1ffc97104.html

hawki · Sep 13, 2020

"Microsoft Says Its Bid for TikTok Was Rejected...

WASHINGTON — The owner of the Chinese app TikTok rejected an offer on Sunday from Microsoft to take over the firm’s U.S. operations, Microsoft said...

The move leaves Oracle...as the sole publicly known remaining bidder for TikTok..."

https://www.nytimes.com/2020/09/13/...owner of the,its American operations are sold.

hawki · Sep 13, 2020

"Oracle Wins Bidding for TikTok in U.S., After Microsoft Proposal Rejected...

Oracle is set to be announced as TikTok’s “trusted tech partner” in the U.S., and the deal is likely not to be structured as an outright sale..."

[Paywall]

https://www.wsj.com/articles/microsoft-drops-out-of-bidding-for-tiktoks-u-s-operations-11600039821

guest · Sep 14, 2020

Oracle confirms deal with TikTok-owner ByteDance to become ‘trusted technology provider’
The deal could make Oracle a bigger force in advertising and make it more relevant to young consumers
September 14, 2020
https://www.cnbc.com/2020/09/14/ora...ce-to-become-trusted-technology-provider.html

Oracle on Monday confirmed it has struck a deal with ByteDance, the Chinese owner of popular video-sharing app TikTok, weeks after the Trump administration ordered a TikTok divestiture in the United States.
The deal still needs U.S. government approval.

“Oracle confirms Secretary Mnuchin’s statement that it is part of the proposal submitted by ByteDance to the Treasury Department over the weekend in which Oracle will serve as the trusted technology provider,” Oracle said Monday.
Earlier on CNBC, Mnuchin said the U.S. government plans to review the deal this week.

“I will just say from our standpoint, we’ll need to make sure that the code is, one, secure, Americans’ data is secure, that the phones are secure and we’ll be looking to have discussions with Oracle over the next few days with our technical teams,” he said on “Squawk Box.”
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Depending on how the deal works out, it could boost Oracle’s cloud business. It might make Oracle more visible to young consumers and give it control over a prominent advertising venue.
Microsoft, which competes with Oracle in cloud computing and database software, was also interested in TikTok’s U.S. operations. But Microsoft’s bid was rejected, and the company announced Sunday it had withdrawn from the process.

Serving as a technology provider to TikTok might mean Oracle will offer its cloud infrastructure for the app to use. That would give Oracle another popular property for its executives to boast about as a cloud client, and it could attract additional cloud business.
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guest · Sep 14, 2020

Walmart still interested in TikTok deal despite Microsoft’s rejection
September 14, 2020
https://nypost.com/2020/09/14/walmart-still-pursuing-tiktok-deal-after-microsoft-rejected/

Walmart says it is still pursuing a deal with TikTok even though its bidding partner, Microsoft, is out of the race to acquire the popular app.

America’s biggest retailer confirmed its continued interest in the video-sharing platform Sunday as Microsoft revealed TikTok parent ByteDance had rejected its offer. The Beijing-based firm has instead chosen California-based software firm Oracle as its US technology partner, according to reports.

“Walmart continues to have an interest in a TikTok investment and continues discussions with ByteDance leadership and other interested parties,” Walmart said in a statement.
“We know that any approved deal must satisfy all regulatory and national security concerns.”
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Analysts have said Walmart could use the app — which has 100 million US users and is popular with teens and young adults — to build up its e-commerce business and sell advertisements to other companies.
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guest · Sep 14, 2020

Hawley calls on CFIUS to reject Oracle-TikTok deal
September 14, 2020
https://thehill.com/policy/technology/516379-hawley-calls-on-cfius-to-reject-oracle-tiktok-deal

Sen. Josh Hawley (R-Mo.) urged the Committee on Foreign Investment in the United States on Monday to reject a proposal where Oracle would become TikTok's partner.

The two companies over the weekend submitted a deal with ByteDance, TikTok's parent company, where Oracle would be the short-form video apps "trusted technology provider" to the Treasury Department.
CFIUS, an interagency body that deals with national security concerns stemming from transactions involving overseas companies, will now have to review the deal before approving it.
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Hawley raised concerns in Monday's letter that the proposed partnership — details of which have not been made available — would not address the threat of the Chinese government accessing user data or pushing messaging on TikTok.

"China’s repressive intelligence laws, which allow the seizure of data from Chinese companies like ByteDance if the Chinese Communist Party comes knocking, still remain in force," the Missouri lawmaker wrote.
"And that is why any corporate shell game that leaves TikTok in the hands of ByteDance will simply perpetuate the original problem, leaving U.S. national interests and everyday users at serious risk."
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"CFIUS should promptly reject any Oracle-ByteDance collaboration and send the ball back to ByteDance’s court so that the company can come up with a more acceptable solution," he wrote.
Hawley, a noted China hawk, has been a fervent critic of TikTok.
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guest · Sep 15, 2020

‘It’s done’ — Cramer says Trump administration will approve Oracle-TikTok deal Tuesday
September 15, 2020
https://www.cnbc.com/2020/09/15/cra...-will-approve-oracle-tiktok-deal-tuesday.html

Approval of Oracle’s deal to become a “trusted technology provider” for ByteDance’s TikTok will be announced on Tuesday afternoon, CNBC’s Jim Cramer reported. A source familiar with the matter later confirmed to CNBC’s Eamon Javers that a decision could come Tuesday.

An executive order that would effectively ban the TikTok app is set to go into effect on Sunday, though approval of the deal could resolve concerns before then.
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guest · Sep 15, 2020

U.S. offers to exempt employees, contractors from TikTok executive order
September 15, 2020
https://www.reuters.com/article/us-...ors-from-tiktok-executive-order-idUSKBN2662HK

The United States has offered to exclude from President Donald Trump’s executive order transactions that involve TikTok employees and contractors performing “their regular job duties and responsibilities,” according to a court document filed late Monday, granting a reprieve from his sell-or-die demand.
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Separately, an employee of TikTok, Patrick Ryan, has sued the government in California, saying the order was unconstitutional and that it unfairly stripped TikTok employees of their wages.

Ryan’s request for a restraining order against the Trump administration was due to be argued Tuesday, but in a letter sent Monday evening a lawyer for the Department of Justice offered to have Department of Commerce officials not interpret Trump’s executive order “in a manner which would prohibit the payment of wages and/or salaries to Plaintiff or any other employee or contractor of TikTok.”
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guest · Sep 16, 2020

Oracle's TikTok deal fails to resolve US security concerns
September 16, 2020
https://appleinsider.com/articles/20/09/16/oracles-tiktok-deal-fails-to-resolve-us-security-concerns

Oracle's bid for the U.S. operations of social media platform TikTok does not fully resolve White House national security concerns, according to a new report.

On Sunday, it was reported that Microsoft's bid to acquire TikTok's U.S. arm had failed and that Oracle had closed a deal with developer ByteDance.
President Donald Trump has the authority to sign off on the acquisition, but Bloomberg reports that the Oracle and TikTok deal falls short of resolving national security concerns about Chinese espionage.
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Currently, the agreement is still being negotiated between administration officials and the two companies. Addressing those security concerns, which could include barring ByteDance's access to U.S. data, could be the key to government approval.
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guest · Sep 17, 2020

ByteDance's bid to keep most of TikTok faces major hurdles
September 17, 2020
https://ca.reuters.com/article/technologyNews/idCAKBN2680KL-OCATC

China’s ByteDance faces an uphill struggle to convince the White House to allow it to keep majority ownership of its popular short video app TikTok in the United States, according to former national security officials and regulatory lawyers.

ByteDance has submitted a plan to U.S. officials for it to keep a majority stake in TikTok’s global business and create headquarters for TikTok in the United States, Reuters reported on Tuesday.
“Conceptually I can tell you I don’t like that (ByteDance keeping a majority ownership of TikTok). That has been reported, but it has not been told to me yet. If that is the case, I’m not going to be happy with that,” Trump told reporters at the White House on Wednesday.
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Were Trump to approve the deal, he would have to amend an executive order he signed on Aug. 14 directing ByteDance to divest TikTok in the United States, something that no U.S. President has ever done in the history of national security reviews, CFIUS experts said.
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guest · Sep 18, 2020

TikTok set to IPO globally if Trump approves deal with Oracle, Walmart
ByteDance plans to IPO TikTok’s global business
September 17, 2020
https://www.cnbc.com/2020/09/17/tru...-36-hours-oracle-to-take-20percent-stake.html

President Donald Trump is expect to decide on TikTok’s fate in the U.S. in the next 24-36 hours, sources told CNBC’s David Faber.

To address ownership concerns, ByteDance plans to do an initial public offering of global TikTok on a U.S. stock exchange, according to people familiar with the matter. Oracle will also own a minority stake that will be less than 20% of the new global TikTok, two of the people said. Walmart will also take a stake, though its size is still unknown, according to two of the people.
The Treasury Department sent major revisions about security issues on the TikTok/Oracle term sheet Wednesday night, sources told CNBC’s Sara Eisen.
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guest · Sep 18, 2020

TikTok Accepts Deal Revisions as Trump Prepares to Review Proposal
The video app is also looking for a new chief executive and has talked to candidates including a founder of Instagram
September 17, 2020 (Updated: September 18, 2020)
https://www.nytimes.com/2020/09/17/technology/tiktok-deal-revisions-trump-review.html

The Chinese company that owns TikTok has accepted the Trump administration’s changes to a deal designed to mitigate the White House’s concerns that the popular app poses a national security threat, two people with knowledge of the talks said.

Some of the revisions were intended to address how TikTok’s data and source code would be handled and secured, one of the people said. The two sides have agreed in principle, but are still discussing some technical details, the other person said.
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Among those whom TikTok has talked to about the job is Kevin Systrom, a founder and former chief executive of Instagram, people briefed on the matter said. Talks are preliminary, and no final decisions have been made, they said.
Mr. Systrom left Instagram, which Facebook owns, in 2018. He did not respond to a request for comment on Thursday.
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TikTok Reportedly Considering Instagram Billionaire Kevin Systrom For Vacant CEO Role

As TikTok and Oracle ORCL -0.4% work out an acquisition deal, the social media company is also thinking about who will be its next CEO after its last chief, Kevin Mayer, departed after only a few months.
The discussions between Systrom and Tiktok are only in the early stages, the Times reports. TikTok could not be reached to comment for this story. A spokesperson for Systrom declined to comment.

TikTok’s divestiture from its Chinese-owned parent company ByteDance very much remains a work in progress. Bloomberg reported this afternoon that the U.S. Treasury department has tentatively approved a deal that would leave TikTok’s U.S. operations largely in the hands of American stakeholders, including Oracle.
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hawki · Sep 18, 2020

"Trump Administration to Ban TikTok and WeChat From U.S. App Stores

WASHINGTON — The Trump administration said Friday it would bar the Chinese-owned mobile apps WeChat and TikTok from U.S. app stores as of Sunday, striking a harsh blow against two popular services used by more than 100 million people in the United States.

The restrictions will ban the transferring of funds or processing of payments through WeChat within the United States as of Sunday. In the case of WeChat, the restrictions will also prevent any company from offering internet hosting, content delivery networks, internet transit or peering services to WeChat, or using the app’s code in other software or services in the United States.

Those same prohibitions on providing services go into effect on Nov. 12 for TikTok..."

https://www.nytimes.com/2020/09/18/business/trump-tik-tok-wechat-ban.html

hawki · Sep 18, 2020

In light of pending TikTok ban, "vpns" is trending on Twitter:

https://twitter.com/search?q=vpns

For example from PC Mag:

"If you're looking for VPNs right now due to the looming #TikTokBan (or for many other valid reasons!), we've got many suggestions based on our testing."

https://twitter.com/PCMag/status/1306964853727416322

guest · Sep 18, 2020

TikTok boss calls out Facebook, Instagram to team up against Trump ban
September 18, 2020
https://www.digitaltrends.com/socia...t-facebook-instagram-to-help-fight-trump-ban/

A top TikTok executive is telling Facebook and Instagram to put their money where their mouth is.

TikTok U.S. General Manager Vanessa Pappas called out the social media powerhouses after the Trump administration announced that TikTok would be banned from being downloaded from U.S. app stores starting Sunday.
After the ban on downloads was announced Friday morning, Instagram chief Adam Mosseri tweeted that the regulation “would be quite bad for Instagram, Facebook, and the internet more broadly.”

“We invite Facebook and Instagram to publicly join our challenge and support our litigation,” Pappas wrote. “This is a moment to put aside our competition and focus on core principles like freedom of expression and due process of law.”
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Though the ban on Sunday will block new downloads, you can still use the app if you have it downloaded, though you won’t be able to update it.
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guest · Sep 19, 2020

US TikTok users prepare for a possible exit from platform
September 19, 2020
https://techxplore.com/news/2020-09-tiktok-users-exit-platform.html

American TikTok users reacted with a collective shrug Friday to the US move to ban new downloads of the video-sharing app—but many are already planning an exit to other platforms should the clampdown lead to an outright ban.

Although young users on the platform, who make up its primary base, don't seem to have paid much attention to the government's announcement, the older ones have reacted.
Some users were pragmatic, pointing out that for those who already had the app little would change between Sunday, when the government ban on downloads will go into effect, and November 12, the cutoff date set by President Donald Trump's administration.
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However, most of those who have built a following on TikTok are getting ready to pack their bags, regardless of the ultimate outcome.
For people who make a living off of their presence on the social network—such as star Addison Rae, who boasts 60.9 million followers and earned $5 million between June 2019 and June 2020, according to Forbes magazine—the financial stakes are high.

In the current context, "startups like Byte may have the edge, as we know established brands in tech lose their 'cool factor' the older they get," said Mourey, pointing to younger generations' migration from Facebook to Instagram.
But even weakened and suspended, TikTok isn't dead yet, Mourey warned.
A lot can still happen before November 12 [...]
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guest · Sep 19, 2020

Lame-duck versions of TikTok and WeChat are definitely a problem, security experts say
September 18, 2020
https://www.cyberscoop.com/tiktok-wechat-ban-security-issues/

Cybersecurity experts and privacy advocates said Friday that TikTok and WeChat users should probably stop using the applications in the coming days, given that the Trump administration’s new ban on them will effectively block users from downloading updates.

“The order … harms the privacy and security of millions of existing TikTok and WeChat users in the United States by blocking software updates, which can fix vulnerabilities and make the apps more secure,” the Director of the American Civil Liberties Union’s National Security Project, Hina Shamsi, said in a statement.
After Sunday, when some of the restrictions are slated to take effect, TikTok and WeChat will progressively become riskier and riskier, said Dave Kennedy, the chief technology officer and co-founder of Ohio-based Binary Defense.

“As code progresses, security vulnerabilities and security issues come into play. By blocking updates, you’re going to preclude TikTok from addressing security issues and vulnerabilities,” Kennedy, who previously worked at the National Security Agency, told CyberScoop.
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Also an issue: VPNs and jailbreaking
There are other ways TikTok and WeChat users can put themselves at risk. The experts are also wary of U.S. residents who might try to circumvent the ban.
Both approaches could expose devices to other security issues, Kennedy said. Not all VPNs are safe or reliable, and jailbreaking phones for software installation degrades their security.
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guest · Sep 19, 2020

The TikTok deal solves quite literally nothing
September 20, 2020
https://techcrunch.com/2020/09/19/tiktok-deal-terms/

Well… that was pointless.
After debasing the idea of free commerce in the U.S in the name of a misplaced security concern, stringing along several multi-billion dollar companies that embarrassed themselves in the interest of naked greed, and demanding that the U.S. government get a cut of the profits, the TikTok saga we’ve been watching the past few weeks finally appears to be over.

Oracle, whose cloud infrastructure services run a laughable fourth to AWS, Amazon, and Microsoft, will be taking a 20 percent stake in TikTok alongside partner Walmart in what will be an investment round before TikTok Global (as the new entity will be called) goes public on an American stock exchange.
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According to a statement from TikTok, Oracle will become TikTok’s “trusted technology partner” and will be responsible for hosting all U.S. user data and securing associated computer systems to ensure U.S. national security requirements are fully satisfied. “We are currently working with Walmart on a commercial partnership as well,” according to the statement from TikTok.

pic.twitter.com/jWxjnAIwZQ
— TikTok_Comms (@tiktok_comms) September 19, 2020
The deal benefits everyone except U.S. consumers and people who have actual security concerns about TikTok’s algorithms and the ways they can be used to influence opinion in the U.S.
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To be clear, data privacy and security is a major concern, but it’s not one that’s a concern when it comes to TikTok necessarily (and besides, the Chinese government has likely already acquired whatever data they want to on U.S. customers).

The Commerce Department in its statement said that “In light of recent positive developments, Secretary of Commerce Wilbur Ross, at the direction of President Trump, will delay the prohibition [...] until September 27, 2020 at 11:59 p.m.” So that’s a week reprieve.
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guest · Sep 20, 2020

President Trump reportedly has approved the Oracle deal for TikTok’s US operations
September 20, 2020
https://techcrunch.com/2020/09/19/p...ed-the-oracle-deal-for-tiktoks-us-operations/

President Donald Trump said has has given his stamp of approval “in concept” on the Oracle bid for the U.S. operations of the wildly popular social media app, TikTok, according to a report from Bloomberg.

According to the Bloomberg report Trump said, “I have given the deal my blessing,” as he left the White House for a campaign rally in North Carolina on Saturday.

“I approved the deal in concept,” Trump reportedly said.
With the TikTok deal set to be approved, a new company called TikTok Global will be created as part of the deal, according to statements from Treasury Secretary, Steven Mnuchin, earlier this week.
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On Friday, the American Civil Liberties Union and the head of Facebook’s Instagram subsidiary both came out with statements opposing the proposed transaction.

“This order violates the First Amendment rights of people in the United States by restricting their ability to communicate and conduct important transactions on the two social media platforms,” said Hina Shamsi, director of the American Civil Liberties Union’s National Security Project, in a statement on Friday.
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mood said: ↑

The TikTok deal solves quite literally nothing
September 20, 2020
https://techcrunch.com/2020/09/19/tiktok-deal-terms/
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hawki · Sep 20, 2020

"U.S. judge blocks Commerce Department order to remove WeChat from app stores

WASHINGTON, Sept 20 (Reuters) - A U.S. judge early Sunday blocked the Commerce Department from requiring Apple Inc and Alphabet Inc's Google to remove Chinese-owned messaging app WeChat for downloads by late Sunday..."

https://www.thesundaily.my/world/re...er-to-remove-wechat-from-app-stores-DA4147151

guest · Sep 21, 2020

ByteDance says not aware of $5 billion education fund in TikTok deal
September 20, 2020
https://uk.reuters.com/article/us-u...n-education-fund-in-tiktok-deal-idUKKCN26B039

TikTok owner Bytedance said in a social media post on Sunday that it was the first time it had heard in the news it was setting up a $5 billion education fund in the United States.

U.S. President Donald Trump said he had approved a deal, which included a $5 billion education fund, to allow TikTok to continue to operate in the United States.

“The company has been committed to investing in the education field, and plans to work with partners and global shareholders to launch online classroom projects based on AI and video technology for students around the world,” ByteDance said on its official account on Toutiao.
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guest · Sep 21, 2020

EPIC Demands Privacy Commitments From Oracle, TikTok
September 21, 2020
https://epic.org/2020/09/epic-demands-privacy-commitmen.html

EPIC has sent demand letters to Oracle and TikTok warning both of their legal obligation to protect the privacy of TikTok users if the companies enter a partnership.

Last week, following President Trump's threat to effectively ban TikTok from the United States, Oracle reached a tentative agreement to serve as TikTok's U.S. partner and to "independently process TikTok's U.S. data."
But the deal, which would pair one of the largest brokers of personal data with a social network of 800 million users, presents grave privacy and legal risks.

"Absent strict privacy safeguards, which to our knowledge Oracle has not established, [the] collection, processing, use, and dissemination of TikTok user data would constitute an unlawful trade practice," EPIC wrote.
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EPIC warned Oracle and TikTok that unless they "adequately protect the privacy of TikTok users"—for example, by committing not to sell TikTok user data or merge it with Oracle products—EPIC intends to bring a lawsuit against both companies under the D.C. Consumer Protection Procedures Act.
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hawki · Sep 21, 2020

"TikTok says Oracle can review its source code, but deal won’t allow tech transfers

SEOUL — China's TikTok sought to tamp down domestic controversy over its deal with Oracle and Walmart, saying in a blog post Monday that there would be no technology transfer to Oracle, though the U.S. company would be able to check its software for safety...

'The current plan does not involve the transfer of any algorithms or technology,' ByteDance said in the post on its official WeChat account. 'Oracle has the authority to check the source code of TikTok USA'..."

https://www.washingtonpost.com/worl...48aebe-fbb9-11ea-b0e4-350e4e60cc91_story.html

guest · Sep 21, 2020

TikTok owner ByteDance contradicts Trump claims about Oracle deal
September 21, 2020
https://9to5mac.com/2020/09/21/oracle-deal/

Just as we thought the TikTok saga might finally be coming to an end, ByteDance has contradicted two claims made by Trump about the Oracle deal …

President Trump approved the deal over the weekend, claiming that the US subsidiary would be majority-owned by US investors, and therefore Americans would control the company. He also claimed that the US Treasury would get a $5B windfall from the deal.
The Financial Times reports that ByteDance says neither claim is true.

The FT says that ByteDance is in the impossible position of having to try to satisfy the conflicting demands of US and Chinese governments.
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TechCrunch: ByteDance says it will own a majority of TikTok. Oracle says ByteDance will own 0%. WTF is this deal?

In a new statement attributed to its executive vice president Ken Glueck, Oracle said that “Upon creation of TikTok Global, Oracle/Walmart will make their investment and the TikTok Global shares will be distributed to their owners, Americans will be the majority and ByteDance will have no ownership in TikTok Global.”

From what I can glean (and to be honest, given the shifting landscape and war of words, it’s not clear that even the participants know what is going on), “TikTok” the app is going to be housed in a new company called TikTok Global, which will be located outside of China proper. There appears to be no other “TikTok” entity. ByteDance will continue to own its China-centric apps Douyin (which also is a short video social service targeting the Chinese market), Toutiao, and others and obviously keep running them.
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So how can a company simultaneously own a majority of the company and 0% of a company? TechCrunch is investigating, or at least, combing through the rubble of this deal and trying to make heads or tails of it.
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guest · Sep 22, 2020

TikTok says it removed 104M videos in H1 2020, proposes harmful content coalition with other social apps
September 22, 2020
https://techcrunch.com/2020/09/22/t...ful-content-coalition-with-other-social-apps/

As the future of ByteDance’s TikTok ownership continues to get hammered out between tech leviathans, investors and government officials in meeting rooms, the video app today published its latest transparency report. In all, over 104.5 million videos were taken down; it had nearly 1,800 legal requests; and received 10,600 copyright takedown notices for the first half of this year. Alongside that, possibly to offset the high numbers of illicit videos, TikTok also announced a new initiative — potentially in partnership with other social apps — against harmful content.

TikTok said that the 104,543,719 total videos that TikTok removed globally for violating either community guidelines or its terms of service made up less than 1% of all videos uploaded on TikTok, which gives you some idea of the sheer scale of the service.
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TikTok: Our H1 2020 Transparency Report

Today we released our global Transparency Report for the first six months of 2020. This report provides insight into content removed from TikTok for violating our Community Guidelines or Terms of Service. It also shows how we responded to copyright content take-down requests, law enforcement, and government agencies.
Click to expand...

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