House Bill Passes, Oracle Meets with Senate Aides on TikTok Data Storage
In a recent development surrounding the fate of TikTok in the United States, Oracle’s top lobbyist held private meetings with Senate aides to discuss the company’s data storage agreement with the social media app. The House bill, which effectively banned TikTok in the country, now requires ByteDance, TikTok’s Chinese parent company, to divest the application or face a potential ban.
According to Ken Glueck, Oracle’s EVP, the four meetings primarily focused on discussing the technical aspects of the data storage project. Oracle hired two lobbying firms, Fierce Government Relations and Polaris Government Relations, to facilitate these discussions. Glueck engaged with staffers from the Senate Commerce Committee and the Senate Intelligence Committee, with two meetings taking place in person and two over Zoom.
It is important to note that Oracle did not actively lobby for or against the TikTok bill. Instead, they disclosed the meetings on mandatory filings to uphold transparency. The purpose was to address the technical concerns related to data storage rather than influence the legislation directly.
However, market analysts predict that Oracle could face financial challenges if a TikTok ban is implemented. UBS analysts stated that losing TikTok as a customer would have a negative impact on Oracle’s revenue, as TikTok is likely their largest OCI (Oracle Cloud Infrastructure) customer. Oracle and TikTok have reportedly reached a $1 billion deal, highlighting the significance of their business partnership.
Senator Maria Cantwell, chair of the Commerce Committee, and Senator Mark Warner, chair of the Intelligence Committee, played key roles in these discussions. In the event that President Joe Biden signs a ban into law, Cantwell and Warner have indicated that it could take up to a year for TikTok to be successfully divested from ByteDance.
Interestingly, TikTok’s lobbyists expressed dissatisfaction with legislators, claiming that they did not do enough to oppose the legislation after learning about the private meetings. TikTok has actively invested millions of dollars in advertising and lobbying efforts to prevent the bill from becoming law.
Oracle’s lobbying expenses in Washington have been substantial, with an estimated spending of over $2.4 million year to date. Fierce Government Relations and Polaris Government Relations were the only outside firms Oracle paid this quarter specifically for assistance regarding the TikTok legislation. The services provided included offering technical assistance to congressional offices during the legislative debate.
In conclusion, the passage of the House bill banning TikTok in the United States has spurred discussions between Oracle’s top lobbyist and Senate aides. While Oracle did not actively lobby for or against the legislation, these meetings aimed to address technical concerns related to data storage. However, if a ban is implemented, Oracle could face financial challenges due to the potential loss of its largest OCI customer. The divestment process, if initiated, could take up to a year. TikTok has expressed disappointment with legislators and has invested significant resources in lobbying activities to prevent the bill from becoming law. Oracle’s lobbying expenses, especially related to TikTok, have been substantial this year.
