TikTok, the globally popular platform for short-form videos, has been at the center of intense scrutiny in the United States due to concerns over its Chinese ownership and potential risks to national security. From an Executive Order issued by former President Donald Trump to recent legislative action that resulted in TikTok’s U.S. shutdown, the platform's story is one of regulatory battles, technological shifts, and geopolitical tension. Here’s a thorough overview of the key milestones, with sources referenced throughout.

Trump’s Executive Order and Initial Scrutiny

In August 2020, then-President Donald Trump issued an Executive Order targeting TikTok (source 1), citing national security risks due to its ownership by ByteDance, a Chinese company. The order argued that TikTok’s collection of U.S. user data could be accessed by the Chinese government and used for espionage or disinformation campaigns.

The Executive Order required ByteDance to divest TikTok’s U.S. operations within 90 days or face a ban. This marked the first major regulatory push to isolate TikTok’s U.S. data from its Chinese operations. Additional guidance on this divestment was issued by the U.S. Treasury (source 2).

Oracle’s Role in Securing TikTok

In response to the Executive Order, TikTok announced a partnership with Oracle in September 2020. Oracle became TikTok's secure cloud provider, hosting U.S. user data on its Generation 2 Cloud infrastructure (source 3). This move aimed to address security concerns by ensuring U.S. data was stored within U.S. borders, under the oversight of a trusted American company.

By June 2022, TikTok completed the migration of all U.S. user data to Oracle servers (source 4). Oracle also conducted ongoing reviews of TikTok’s source code to ensure compliance with U.S. privacy and security standards (source 5).

Legislation and the Shutdown

Despite the Oracle partnership, bipartisan concerns about TikTok’s ownership persisted. In April 2024, Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) (source 6), requiring foreign-owned apps like TikTok to divest their U.S. operations or cease operations entirely. ByteDance refused to comply, resulting in TikTok’s shutdown on January 18, 2025 (source 7).

The shutdown impacted 170 million U.S. users, many of whom relied on TikTok for communication, entertainment, and income. Oracle, in compliance with the legislation, began shutting down its servers hosting TikTok’s U.S. data (source 8).

Implications for Users and Technology

Data Privacy and Security: Oracle’s role in hosting U.S. TikTok data demonstrates the importance of secure infrastructure in mitigating national security concerns. However, questions remain about long-term compliance and transparency.

Market Disruption: TikTok’s shutdown has forced influencers, advertisers, and marketers to migrate to alternative platforms, creating a ripple effect in the digital economy.

Global Regulatory Trends: The TikTok saga underscores a growing trend among governments to regulate foreign-owned technology platforms. This trend could reshape the future of global app development and operations.

The Bigger Picture

TikTok’s journey illustrates the complexities of balancing innovation with security. The U.S. government’s actions reflect a broader struggle to manage the risks posed by foreign-owned technologies while preserving user freedoms and access to global platforms.

As negotiations continue, the outcome of the TikTok case could set a precedent for how governments handle foreign-owned apps and their influence in the digital landscape. Whether TikTok survives in the U.S. or new alternatives emerge, its story will remain a critical case study in the intersection of technology, geopolitics, and regulation.

Word on the Street

Perplexity AI:

This artificial intelligence startup, backed by investors such as Jeff Bezos and Nvidia, has submitted a bid to merge with TikTok's U.S. business. Perplexity AI was recently valued at $9 billion, while TikTok's U.S. operations are estimated to be worth between $40 billion and $50 billion.

Frank McCourt's Consortium:

Billionaire Frank McCourt, through his firm Project Liberty, has made an offer to buy TikTok's U.S. operations, valuing the app at approximately $20 billion, excluding its algorithm. McCourt is open to retaining TikTok's existing investors, including its founder, in any deal.

Elon Musk:

The entrepreneur has been mentioned as a potential buyer, reflecting high-profile interest in TikTok's U.S. assets.

Sources

Trump Executive Order:

https://trumpwhitehouse.archives.gov/presidential-actions/executive-order-addressing-threat-posed-tiktok/

Treasury Department Announcement:

https://home.treasury.gov/system/files/136/EO-on-TikTok-8-14-20.pdf

Oracle as TikTok’s Cloud Provider:

https://www.oracle.com/news/announcement/oracle-chosen-as-tiktok-secure-cloud-provider-091920/

TikTok’s Data Migration to Oracle:

https://www.theverge.com/2022/6/19/23174775/tiktok-oracle-team-up-concerns-data-privacy-remain

Oracle Reviewing TikTok’s Source Code:

https://time.com/6281946/tiktok-oracle-source-code/

PAFACA Legislation:

https://www.congress.gov/bill/118th-congress/house-bill/7521

AP News on TikTok Shutdown: https://apnews.com/article/119969bfc584e92d47baa189a3e1c4fc

Politico on TikTok Ban and Oracle’s Shutdown Preparation: https://www.politico.com/news/2025/01/18/tiktok-ban-puts-squeeze-on-big-tech-00199151

Reuters on Trump’s Proposed 90-Day Reprieve: https://www.reuters.com/technology/tiktok-goes-dark-us-users-trump-says-save-tiktok-2025-01-19/