U.S. OMB Lifts Ban on TikTok Use on Government Devices

The decision marks a new turning point in the security concerns and national security controversy that have surrounded TikTok.

The OMB made clear that the lifting of the ban followed the opinion of its legal counsel office.

The TikTok social media app, owned by China's ByteDance, has long been a subject of controversy over potential security threats. There were concerns that by signing up for and using TikTok, user information could be passed to the Chinese Communist Party, and some experts said this was technically possible.

The controversy amplified questions about TikTok's data security practices.

TikTok repeatedly stressed that it stores U.S. user data independently on U.S. servers and operates them separately, so no problem would arise. However, it was later confirmed that servers holding U.S. user data also existed in China, and the controversy grew even larger.

These facts contradicted TikTok's explanations and helped form public opinion in the U.S. that TikTok could not be left as it was.

In the end, under pressure from President Trump last year, ByteDance was forced to sell TikTok's U.S. business.

This officially confirms that the existing ban has been lifted.

The memo reflects the legal judgment that, as TikTok took on a new ownership structure and operating model, the existing security concerns were resolved. Government agencies and their employees can therefore now use TikTok.

With this, the so-called "TikTok U.S. Data Security Joint Venture," which takes over U.S. assets and operating rights, officially launched.

The joint venture will operate TikTok's U.S. business independently, with a focus on resolving the existing security concerns.

Oracle acquired a 15% stake in the business.

This is interpreted as a measure to dispel earlier concerns about interference from the Chinese parent, by having a U.S. company directly manage the core security and operating functions of TikTok's U.S. business.

Silver Lake, a U.S. global technology private equity firm, acquired a 15% stake, and MGX, a state-owned artificial intelligence investment firm from the United Arab Emirates, also holds 15%. In addition, several other companies, including the family office of Michael Dell, founder of Dell, and Susquehanna Dragoneer, took part as consortium shareholders.

This is a minority stake, below 20%.

As a result, TikTok's U.S. business is now structured so that U.S. capital controls more than 80% of the equity, and the recommendation algorithm and user data are also placed under the management of the U.S. entity. This has allowed it to escape the years-long national security controversy and the crisis of a complete service shutdown.

This shows that the change in TikTok's ownership and operating structure played an important role in resolving U.S. security concerns.

As a result, TikTok can now be used legally within U.S. government agencies.

NNP News said it strongly advises against using applications made by other Chinese companies, such as Temu and Alibaba. The point is that these apps are inevitably subject to the same security suspicions that TikTok faced.

Under China's security law, Chinese companies are obligated to hand over the information they hold whenever the Chinese Communist Party demands it, and it stressed that other Chinese apps also carry potential security risks.