TikTok has undergone a significant transformation in ownership, impacting its operations in the United States. On January 22, 2024, ByteDance, the platform’s Chinese parent company, finalized a $14 billion deal to divest its US operations to a consortium of investors, including Silver Lake, Abu Dhabi’s MGX, and Oracle. Each of these entities will hold a 15 percent stake in the newly formed TikTok US Data Security (USDS) Joint Venture LLC, while ByteDance retains a 19.9 percent stake in accordance with regulations that came into effect last year.
The leadership structure of TikTok’s US operations has also changed, with Adam Presser, the former global head of operations and trust and safety, taking the helm as CEO of the US division. Will Farrell, who previously directed security and privacy for TikTok’s US arm, will serve as the chief security officer. Meanwhile, Shou Zi Chew remains CEO of TikTok’s global operations under ByteDance and will hold a seat on the US joint venture’s board alongside six American executives.
A primary change for users is the introduction of a new terms of service, which has raised concerns among some TikTok users. The app will continue to function without requiring a new download, as updates are expected to occur automatically. According to the USDS website, the joint venture aims to maintain “interoperability” with the global TikTok experience, ensuring that users can still access content from international creators.
While the application will continue to allow users to discover creators on a global scale, there will be a notable shift in the algorithm. The new US branch plans to “retrain, test, and update” this algorithm using US user data, addressing concerns about potential Chinese government influence on content. However, the timeline for these changes remains unclear.
Changes to the terms of service include a shift in geolocation tracking; the app will now collect precise location data with user permission. Additionally, the updated terms introduce clauses regarding the collection of information from user interactions with the app’s AI features. Despite these updates, many sections of the terms, such as data collection practices related to sensitive personal information, remain consistent with previous policies.
Oracle will oversee security and data privacy for TikTok in the US, along with managing the algorithm. The USDS is tasked with safeguarding the content ecosystem while having authority over trust and safety policies, including content moderation. Concerns have been raised about potential censorship under this new structure, particularly regarding sensitive topics such as the Palestine conflict.
The involvement of Oracle’s co-founder, Larry Ellison, who has ties to former President Donald Trump and Israeli Prime Minister Benjamin Netanyahu, has led to worries about the direction of content moderation. Observers note that social media platforms have adjusted their policies in alignment with Trump’s administration, raising questions about how this ownership change might influence TikTok’s guidelines.
Users have begun expressing their discontent, with some deleting the app in response to the new terms of service and concerns about ownership influences. Others are advocating for disabling geolocation tracking and blocking Oracle’s TikTok account. The implications of these ownership changes for the tone and content on TikTok could be significant, as the ability to influence viral content now rests with the new ownership structure.
Advocacy groups are urging the new owners to remain transparent about their intentions. Kate Ruane, director of the Center for Democracy and Technology, commented on the implications of this ownership change, stating, “This deal is concerning because it hands control over speech on TikTok to a new consortium of investors with their own motivations for shaping online discourse.”
Lawmakers are also taking an interest in this development. Senator Ed Markey (D-MA) has raised concerns about the deal, stating it “raises more questions than answers.” He is calling for Congressional investigations to ensure that national security is prioritized while keeping TikTok operational in the United States.
As TikTok navigates this new chapter, the impact on user experience and content dynamics remains to be seen. The potential for changes in content moderation and algorithmic influence could reshape how users engage with the platform in the future.
