The recent deal struck between TikTok and the US government has significant implications for the platform’s 200 million American users. While the agreement secures TikTok’s continued operation in the country, it also introduces a range of changes that users can expect to see in the coming months.
At the heart of the deal is the establishment of a new majority-American owned and operated entity, the TikTok USDS Joint Venture LLC. This entity, backed by mostly US investors, will govern the platform’s operations in the United States. ByteDance, TikTok’s Chinese parent company, will retain a 19.9% stake in the business.
One of the key changes is the licensing of TikTok’s content recommendation algorithm to tech firm Oracle. Headed by Trump ally Larry Ellison, Oracle will now oversee the algorithm’s training and updating based on US user data, with the aim of ensuring it aligns with American interests. TikTok has stated that both the algorithm and US user data will be protected in “Oracle’s secure US cloud environment.”
Despite these changes, TikTok has emphasized that it will strive to maintain a seamless user experience, with no requirement for users to download a new app. However, the platform has updated its terms of service for US users, introducing new rules such as the prohibition of children under 13 from using the platform outside of the “Under 13 Experience.”
The impact on the user experience remains uncertain, with experts suggesting that algorithm tweaks could lead to subtle changes in the content users see, potentially affecting personalization and the balance between domestic and international content. TikTok has assured that the goal is “continuity, not reinvention,” but some short-term tuning issues, such as reduced reach or repetitive content, cannot be ruled out.
Importantly, the deal also secures the future of TikTok’s sister apps, CapCut and Lemon8, which will also be covered by the safeguards provided by the Joint Venture.
Overall, the new US TikTok deal represents a delicate balance between addressing security concerns and maintaining the platform’s appeal to its vast American user base. While changes are inevitable, TikTok’s commitment to preserving the user experience suggests that the platform’s core appeal may remain largely intact, even as it navigates this new era of heightened oversight and localization.
