TikTok Strikes Deal to Keep App Running in US, But User Experience May Change

Economy & Business

TikTok has finalised a deal allowing its app to continue operating in the United States by creating a new US-based entity, separate from its China-run global operations. Under the agreement, TikTok’s powerful recommendation algorithm will be retrained using only US user data, which will be stored and protected in line with American regulations. Experts say this could alter the app’s feel for US users, potentially affecting how content is recommended and goes viral.

The deal ends months of uncertainty after a US law required TikTok’s Chinese owner, ByteDance, to spin off its American operations or face a ban in January 2025. Enforcement was repeatedly delayed by President Donald Trump, who has since praised the agreement for “saving” the app. The new joint venture will be majority American-owned, with ByteDance retaining a 19.9% stake. Oracle, chaired by Trump ally Larry Ellison, will hold a 15% stake and oversee data security and algorithm retraining.

Lawmakers remain cautious, warning the deal will be closely scrutinised to ensure Chinese authorities have no influence over US user data or the algorithm. While the agreement keeps TikTok alive in its largest market, analysts say the US version of the app may no longer mirror the global TikTok experience.