Popular short-video app TikTok is offering to operate more of its business at arm's length and subject it to outside scrutiny as it tries to convince the U.S. government to allow it to remain under the ownership of Chinese technology company ByteDance, according to people familiar with the matter.
to store the data of the app's users in the United States and a United States Data Security division to oversee data protection and content moderation decisions. It has spent $1.5 billion on hiring and reorganization costs to build up that unit, according to a source familiar with the matter.
Oracle will review both app codes, which determine the look and feel of TikTok, and server codes, which provide functions such as search and recommendations, according to the sources. The reviews will occur at dedicated "transparency centers" visited by Oracle engineers, with the first one scheduled to open in Maryland in January, one of the sources added.
TikTok has been also seeking to hire independent auditors and monitors who would be paid by the company but report to CFIUS, according to the sources. It has sent out requests for proposals for some of the roles to companies and consultants and has set a deadline for responses in the first half of January.
"We have made substantial progress on implementing that solution over the past year, and look forward to completing that work to put these concerns to rest," the TikTok spokeswoman said.
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