TikTok, the wildly popular short-form video platform owned by Chinese company ByteDance, has a massive following in the United States, with more than 170 million users. The app has become more than just a source of entertainment; it’s a vital tool for content creators to earn a living and for businesses to promote their brands and products. However, its immense reach and foreign ownership have also raised significant national security concerns.
The main worries revolved around the potential for the Chinese government to access user data or to use the platform to spread propaganda and influence U.S. citizens. These concerns led to a brief ban on the app in January, followed by a series of postponements by President Trump while a solution was being worked out. The goal was to find a way for TikTok to remain available in the U.S. without posing a threat to national security.
The White House has now confirmed that a framework agreement has been reached. This plan will separate TikTok from ByteDance, allowing it to continue operating for its U.S. users under new ownership. The agreement creates a new U.S.-based joint venture to run TikTok’s operations, along with related apps like Lemon8 and CapCut. Under the new structure, ByteDance and its affiliates will own less than 20% of the new entity, ensuring that it is majority-owned and controlled by American interests.
A key part of the new framework is the control over data and technology. The agreement mandates that U.S. entities will have full control over the app’s algorithms, code, and content moderation. All U.S. user data must be stored in a cloud environment managed by an American company, with security partners monitoring the software and data flows. ByteDance will also be excluded from the new company’s security committee, further reducing its influence. Oracle, which has been hosting U.S. user data since 2020, will now play a much larger role, serving as the security provider and helping manage the app’s operations and algorithms.
This new plan will require a significant change to how the app works in the U.S. TikTok’s algorithms will be retrained using only U.S.-approved data to prevent any foreign influence, and this process will be continuously overseen by security partners like Oracle. According to Bloomberg, U.S. users will need to transition to a new app that replicates the original algorithm using only U.S. user data. This entire restructuring is specific to the U.S. and will not affect non-U.S. users, who will continue to use the global platform under ByteDance’s control.
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