TikTok Secures U.S. Operation Deal Amid Algorithm and Security Questions
After years of uncertainty and political wrangling, TikTok has finally finalized an agreement that allows the popular video-sharing platform to continue operating in the United States. The deal creates a new TikTok U.S. joint venture involving major investors including Oracle, Silver Lake, and the Emirati investment firm MGX. However, significant questions persist regarding potential changes to user experience and whether the arrangement adequately addresses longstanding security concerns surrounding the app.
The Political Path to Preservation
The necessity for this deal emerged from bipartisan congressional action and presidential intervention. Following legislation passed by wide majorities in Congress and signed by President Joe Biden that would have banned TikTok if it didn't find a new owner to replace China's ByteDance, the platform faced a January 2025 deadline that briefly saw it go dark. On his first day in office, President Donald Trump signed an executive order to keep TikTok running while his administration pursued an agreement for the company's sale. A series of subsequent orders extended deadlines until the current arrangement was reached.
Algorithm Evolution and User Experience Uncertainties
American TikTok users will continue using the same app, according to company statements, but what they'll see on their feeds remains unclear. The algorithm powering the U.S. backend will be licensed from ByteDance and then retrained on U.S. user data. This retraining process is certain to create at least subtle changes to personalized feeds.
Jasmine Enberg, an analyst at research firm Emarketer, noted that "any noticeable changes made to a social media platform's service raises the risk of alienating its audience." TikTok's press release claims U.S. creators will remain discoverable worldwide and businesses will maintain global reach, but how interoperability between U.S. operations and ByteDance will function to preserve a global TikTok experience remains unknown.
Kelsey Chickering, a Forrester analyst, explained that "the retrained algorithm means that the trends — and what dominates feeds — will feel distinctly American. Global content will still appear, but its ranking will change." She added, "This matters because the algorithm is the heartbeat of the app's addictive experience. The question becomes: Will a U.S.-centric feed supercharge engagement, or will it chip away at TikTok's cultural cachet?"
Updated Terms and Youth Protections
The deal brings updated Terms of Service, including provisions that while users retain ownership of their content, TikTok can use that content to operate or improve the platform, subject to user settings. Additionally, Americans under age 13 will be limited to an "Under 13 Experience," and users must label any AI-generated content they post as created by artificial intelligence, taking responsibility for such content.
Political Connections and Content Moderation Concerns
The new ownership structure includes connections to the Trump administration. Oracle co-founder Larry Ellison, who maintains significant influence despite no longer serving as CEO, played a role in the administration's earlier efforts to get ByteDance to sell TikTok. These ties have raised concerns about potential content moderation biases and what videos American users will encounter.
Chickering warned that "if moderation happens to tilt toward one political viewpoint or fails to curb misinformation, TikTok risks a user exodus to rival platforms. We've seen this before when Twitter's transformation into X triggered fallout from users and advertisers."
Vice President JD Vance, tasked with leading White House efforts to find a U.S. buyer for TikTok, participated in negotiations alongside President Trump. According to sources familiar with the meetings, both leaders joined some negotiating sessions by phone during September talks in Madrid between U.S. and Chinese officials, ultimately pressuring China to agree to a deal by the end of the trip.
Unresolved Security Questions
The deal doesn't completely address security concerns that prompted the original legislation. Lawmakers had expressed worries that the Chinese government could use TikTok's algorithm for propaganda or data collection on individual users, leading to 2024 legislation requiring divestment from ByteDance.
The law prohibits "any cooperation with respect to the operation of a content recommendation algorithm" between ByteDance and any new American ownership group, making ByteDance's continued involvement—particularly through algorithm licensing—potentially problematic.
Rep. John Moolenaar, R-Michigan, who chairs the House Select Committee on the Chinese Communist Party, stated his committee will scrutinize the deal, saying "The Chinese Communist Party cannot be allowed to weaponize an app to divide and weaken our country. Does this deal ensure China does not have influence over the algorithm? Can the parties involved assure Americans their data is secure? Those are questions that need to be answered." He pledged "full oversight" including hosting leadership of the new TikTok entity at a committee hearing next year.
Business and Creator Perspectives
Skip Chapman, co-owner of KAFX Body in Manasquan, New Jersey, which makes and sells natural deodorants, launched his business on TikTok in April 2023 when TikTok Shop was in beta testing. He expressed relief at no longer worrying about a potential ban that had threatened his business for over a year. While he sells products on his website and Amazon, 80% of sales come from TikTok Shop, which serves as his primary customer acquisition channel.
Chapman said he's "cautiously optimistic the deal will be good for TikTok and his shop," but expressed concern that new owners might de-prioritize e-commerce features. "The past two years, TikTok has really leaned into this live social commerce and just the ability to sell on the platform and they've kind of prioritized it and I'm hoping that the new owners continue to prioritize it and even more so add more features, more benefits, more opportunities for my business," he explained.
Vanessa Barreat, owner of La Vecindad Mexican restaurant in Las Vegas with a TikTok page boasting over 100,000 followers, credits the platform with helping attract customers—particularly tourists—while reducing marketing expenses. She described being in a "wait-and-see mindset" about the deal, stating "Anytime there's a major shift or deal, there's uncertainty, but I'm not operating from fear. TikTok has empowered so many voices that historically didn't have access to platforms like this, and that impact doesn't disappear overnight."
As TikTok transitions under this new arrangement, the platform faces the dual challenge of maintaining its cultural relevance while addressing persistent security concerns, with American users and creators watching closely to see how their experience evolves.
