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TikTok has announced an agreement that will permit the platform to maintain operations within the United States.
With the future of the platform seemingly secured within the country, the 200 million American users of TikTok can anticipate forthcoming changes to the application.
A majority-American board will now oversee and manage a distinct entity that controls TikTok’s operations in the U.S.
Supported primarily by U.S.-based investors, the newly formed TikTok USDS Joint Venture LLC is governed by a board comprising seven directors.
Shou Zi Chew, the Chief Executive Officer of TikTok, is among the directors, while ByteDance, the Chinese parent company, will retain a 19.9% stake in the business.
The content recommendation algorithm, which is central to TikTok’s functionality and determines the videos displayed on the app’s “For You” feed, has been licensed to the technology firm Oracle.
Led by Larry Ellison, an ally of former President Trump, Oracle already manages TikTok U.S. user data under a previous arrangement termed “Project Texas,” which was established due to security concerns.
However, the company is now set to secure more aspects of the application, including retraining and updating its recommendation algorithm based on data from U.S. users.
TikTok has stated that both the algorithm and the U.S. user data will be protected within “Oracle’s secure U.S. cloud environment.”
While the agreement has been reached, it is likely to remain under scrutiny. Some Democrats have expressed concerns that the relationship between the Trump administration and TikTok’s new investor group could potentially restrict the content shared on the platform.
Senator Ron Wyden (D-OR) stated in December, prior to the finalization of the agreement, that “Americans will not be better off if a TikTok sale ends up with the company in the hands of Trump cronies backed by foreign funding.”
Furthermore, Senator Ed Markey reportedly indicated on Friday that Congress should investigate the agreement, citing a “lack of transparency” and detail.
TikTok and the parties involved in its new U.S. joint venture will be keen to avoid significant disruption, making it unlikely that users will be required to download a new application.
The U.S. is believed to be TikTok’s largest global market, with 200 million users, according to the platform.
TikTok faces increasing competition from Instagram and its short-form video feature, Reels, which parent company Meta has been promoting across its applications used by billions.
Experts and analysts have cautioned that excessive changes to TikTok or requiring users to migrate to a new application could discourage users and advertisers.
“Behind the scenes, TikTok is likely working hard to assure advertisers it will remain business as normal,” says Jasmine Enberg, co-CEO of Scalable, a media company and podcast focused on the creator economy.
“While the need for users to download a new app seems unlikely, brand partners will want to know that their TikTok strategies won’t be disrupted.”
TikTok updated its terms of service for U.S. users as the deal closed on Thursday.
It states that the user agreement is now between the users and TikTok’s new U.S. entity, TikTok USDS Joint Venture.
Several changes have been implemented. One new rule stipulates that children under the age of 13 cannot use TikTok outside of its designated “Under 13 Experience.”
Another provision states that the new U.S. entity “does not endorse any content” on the platform, nor does it reflect its views.
U.S. users who continue to use TikTok from January 22 must also agree to the limitations of generative AI, including its potential to generate inaccurate, misleading, inappropriate, or unlawful content.
“By using the platform, including its generative AI-enabled features, you recognize and assume this risk,” it states.
The precise changes that U.S. users will experience in their TikTok application and feeds as a result of the agreement remain unclear.
The BBC has inquired with TikTok regarding the changes to its American user experience and the timeline for these changes.
However, it is known that the recommendation algorithm will be retrained using U.S. user data, which has raised concerns among some individuals about the potential alteration of the highly personalized content served to users.
Enberg suggests that algorithm adjustments could impact the content that users see or even create, potentially “leading to a different look and feel” for U.S. users.
Dr. Kokil Jaidka of the National University of Singapore previously stated that while the application is “unlikely to suddenly feel different” for most users, “changes are plausible.”
Any differences that do appear to U.S. users are likely to be “subtle and gradual,” such as a reduction in personalization.
However, locally controlled, user-facing features, such as TikTok’s short videos, influencer culture, and livestream shopping, may remain unchanged, she added.
“There is a big incentive here to keep what works,” social media expert Matt Navarra told the BBC.
He stated that changes to an algorithm can cause “short-term tuning issues,” such as reduced reach, repetitive content, or random recommendations, and that TikTok would aim to maintain its algorithm as its “crown jewel.”
“What’s important here is you’re still using the same app, the same account and broadly the same recommendation engine,” he said
“I think the goal is continuity not reinvention.”
Using a licensed version of TikTok’s algorithm to power its U.S. version could also present “constraints around data access, update frequency, and integration with TikTok’s global systems,” Jaika said.
However, she stated that changes could impact the “For You” feed, which “learns from massive, cross-regional feedback loops” to surface relevant content, as well as how videos are ranked and moderated.
Nevertheless, many unknowns persist, with much depending “on how ByteDance tweaks the weaker links – such as data separation, update frequency, and oversight mechanisms – without degrading performance.”
Meanwhile, TikTok states that the joint venture will be able to make the app compatible with other apps and regions to provide U.S. users with “a global experience.”
Its press release claims that U.S. creators will remain discoverable, and businesses will be able to maintain global reach.
“It’s not that the world disappears, more that domestic content could crowd out international content over time,” Navarra said.
“In other words, global content stays – but the balance may suddenly shift.”
CapCut and Lemon8 are two other popular applications owned by ByteDance that are accessed by U.S. users.
Previously, it was unclear what the law requiring TikTok’s sale or ban in the U.S. could mean for its sister applications and their users.
However, both “went dark” in the U.S. alongside TikTok when the ban briefly took effect in January 2025.
Their future in the U.S. now appears to be secured, with TikTok stating that the “safeguards provided by the Joint Venture will also cover CapCut, Lemon8, and a portfolio of other apps and websites in the US”.
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