Oracle says US ban on TikTok would harm income, revenue

By Ovunc Kutlu

ISTANBUL (AA) - Oracle said a US ban on Chinese social media firm TikTok would harm its income and revenue.

"In April 2024, the U.S. President signed into law a bill that will make it unlawful to provide internet hosting services to TikTok that are used to enable the distribution, maintenance, or updating of TikTok for users within the U.S. if certain steps are not taken by TikTok’s owners within a set time frame," the company said Monday in a filing with the US Securities and Exchange Commission.

"If we are unable to provide those services to TikTok, and if we cannot redeploy that capacity in a timely manner, our revenues and profits would be adversely impacted," it added.

The American global tech firm said compliance with the law may increase its expenses since the company engages specialized or other additional resources to assist it with compliance efforts.

The law could lead to a ban on TikTok unless its Chinese owner, ByteDance, sells the social media platform in nine months, with the potential for an additional three-month grace period.

The potential ban involves alleged privacy and data security practices by ByteDance, which is suspected of sharing American users' data with the Chinese government.

Oracle, in addition, said it continues to monitor US relations with Russia, Belarus, and China.

"It is difficult to anticipate the effect international relations may have on us," it said. "Changes to sanctions or export control regulations in the U.S. and the other jurisdictions where we currently operate or have dealings, or in the future may operate or have dealings, can require suspension or termination of business (including financial transactions) in or with certain countries and territories or with certain customers.”