The company behind TikTok, ByteDance, announced a deal with Oracle and Walmart to address national security concerns over the app's data storage and handling in the US. The agreement, which was reached in November 2022, requires ByteDance to store US user data in the US and to have an American-based board of directors.

According to Laura Cress, the deal is expected to make TikTok safer for US users, but it may also make the app less relevant in the long run. Cress, a technology expert, notes that the agreement will likely lead to increased costs and complexity for ByteDance, which may ultimately affect the app's user experience and competitiveness. "The deal will require ByteDance to invest in new infrastructure and personnel, which will increase its costs and potentially impact its ability to innovate and compete with other social media platforms," Cress said.

The deal is a response to concerns raised by the US government over TikTok's ties to the Chinese government and its handling of user data. In 2020, the Committee on Foreign Investment in the US (CFIUS) launched an investigation into ByteDance's acquisition of Musical.ly, a social media app popular among teenagers, citing national security concerns. The investigation led to the creation of a new entity, TikTok Global, which would be owned by ByteDance and have a majority of its board members based in the US.

The agreement is also seen as a way for ByteDance to comply with the US government's demands and avoid a potential ban on the app. In 2020, President Donald Trump signed an executive order that would have banned TikTok in the US unless ByteDance sold its stake in the app. The deal with Oracle and Walmart is seen as a compromise that addresses the US government's concerns while allowing TikTok to continue operating in the US.

Industry experts say that the deal will have significant implications for the social media landscape in the US. "The deal will set a precedent for other social media companies that operate in the US and have ties to foreign governments," said Cress. "It will also raise questions about the role of the US government in regulating social media and the balance between national security and free speech."

The deal is currently being reviewed by the US government, and it is unclear when it will be finalized. ByteDance has said that it will continue to operate TikTok in the US while the deal is being reviewed. The company has also stated that it will invest in new infrastructure and personnel to comply with the terms of the agreement.

In the meantime, users of TikTok in the US will likely see little change in the app's functionality and user experience. However, the deal may have significant implications for the app's long-term prospects in the US market. As Cress noted, "The deal will require ByteDance to invest in new infrastructure and personnel, which will increase its costs and potentially impact its ability to innovate and compete with other social media platforms."