TikTok CEO says Oracle has begun reviewing its source code
- TikTok chief executive officer Chew Shou Zi said Oracle has begun a review of the video app’s source code and is now the default destination for US user data
- The company, owned by ByteDance, has come under fire as American lawmakers rekindled concerns over how the Chinese-owned platform handles user data
ByteDance-owned TikTok is “on track” with its undertaking to have all US user data hosted and overseen by Oracle, as the Chinese tech behemoth struggles to win over critics worried about the national security implications of its hit video app.
TikTok chief executive officer Chew Shou Zi said the American software company has begun a review of the video-sharing app's source code and is now the default destination for US user data. His team is also developing a European version of this local-hosting initiative, designed to allay fears of sensitive information reaching the Chinese government, with data centers in Ireland and Norway.
“The Chinese government has actually never asked us for US user data, and we will not provide it even if asked,” Chew told Bloomberg Television at the Qatar Economic Forum in Doha on Tuesday. “We will continue to invest to make sure that our data is as safe as possible.”
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TikTok has come under fire as American lawmakers rekindled concerns over how the Chinese-owned platform handles user data. ByteDance, the world’s most valuable start-up, now faces an intensive national security review and legislation that could ban its signature service in its biggest international market. To address those concerns, TikTok is developing its US and EU projects to have user information stored locally, by a local company, and overseen by local staff.
In March, Chew sat through a grueling five-hour hearing at Capitol Hill where lawmakers repeatedly questioned him about TikTok’s Chinese ownership and Beijing’s ability to access the data of millions of Americans. TikTok executives had internally discussed splitting from ByteDance, but Chinese officials said they would oppose a forced sale.
On Tuesday, the TikTok chief reiterated that his team is working with Oracle and the US government and making progress.
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TikTok’s 150 million American users appear to be its biggest ally. Last week, Montana’s Republican governor, Greg Gianforte, signed a measure that will prohibit the app’s download beginning next year. Local TikTok creators and viewers protested against the first statewide ban of the app in the US, including by suing their government on First Amendment grounds.
“We believe that the Montana bill that was recently passed is simply unconstitutional,” Chew said. TikTok filed a lawsuit to challenge it in the court, and he is confident the company will prevail.
Despite the political tension, TikTok has not eased its push on monetisation. Having already snatched a big portion of advertising from the likes of Meta Platforms and Alphabet’s Google, TikTok is now venturing into live-streaming commerce in places like Southeast Asia and the US, following the tried-and-true model of its Chinese sibling Douyin.
ByteDance’s revenue surged more than 30 per cent to surpass US$80 billion for 2022, matching the tally at rival Tencent Holdings. The double-digit growth also topped that of most of the global internet leaders, including Meta Platforms and Amazon.com.
Back home, ByteDance joined the likes of South China Morning Post owner Alibaba Group Holding and Tencent to implement unprecedented cost curbs during a year of endless regulatory crackdowns and Covid-19 restrictions.
The Beijing-based company, founded about a decade ago, curtailed some of its riskier projects – including in gaming and venture investment. Douyin remains its cash cow as the video forum evolved to become an all-in-one app with built-in purchases, online meal delivery and grocery features.
The TikTok owner was valued at around US$220 billion in a recent private-market investment by Abu Dhabi AI firm G42, down from the US$300 billion that ByteDance set during a September share buy-back programme.
