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Lawyers for TikTok are pushing to settle a lawsuit in Illinois alleging the video-sharing app improperly collects data from its users, many of them underage, as its Chinese parent company closes in on a deal with Oracle Corp.
President Trump issued an executive order in early August giving parent company ByteDance Ltd. 45 days to sell TikTok’s U.S. operations to an American company or face a ban. The deadline put more pressure on the company to resolve the suit before a potential sale, and attorneys have been discussing a settlement in recent weeks, according to court filings and three lawyers involved in the case.
A deal could help TikTok avoid a potentially long and expensive case exploring whether it unlawfully records minors’ personal information, including by scanning their faces, to bolster development of artificial-intelligence technologies in China and feed a recommendation engine seen as key to the app. The algorithm has become a sticking point in sale talks despite little understanding beyond TikTok of how it works.
Whether TikTok’s algorithm will be included in any deal couldn’t be learned. A representative for Oracle declined to comment on the pending deal.
“It’s next to impossible to know …
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