Who owns TikTok now and the way might it change for US customers? | EUROtoday

TikTok has introduced a deal permitting it to proceed working within the US.

But with the platform’s future within the nation seemingly secured, its 200 million American customers are anticipated to see some adjustments.

A majority-American board now owns and operates a separate entity controlling TikTok within the US.

Backed by principally US traders, the newly established TikTok USDS Joint Venture LLC is ruled by a board of seven administrators.

TikTok chief govt Shou Zi Chew is amongst them, and its Chinese proprietor ByteDance will retain a 19.9% stake within the enterprise.

The content material advice algorithm on the coronary heart of TikTok – figuring out which movies present up on the app’s For You feed – has been licensed to tech agency Oracle.

Headed by Trump ally Larry Ellison, Oracle already oversees TikTok US consumer information beneath a earlier association arrange over safety issues referred to as Project Texas.

But the corporate will now safe extra of the app, together with by retraining and updating its advice algorithm primarily based on US consumer information.

TikTok says each the algorithm and US consumer information will probably be protected in “Oracle’s secure US cloud environment”.

Something TikTok and people behind its new US three way partnership will probably be eager to keep away from is an excessive amount of disruption – so making customers obtain a brand new app appears unlikely.

The US is believed to be the platform’s largest international market, with 200 million customers, in response to TikTok.

It faces rising competitors from Instagram and its brief kind video characteristic Reels – which guardian agency Meta has boosted inside its apps utilized by billions.

And specialists and analysts have warned altering TikTok an excessive amount of or requiring customers to maneuver to a brand new app might put customers and advertisers off.

“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 firm and podcast centered on the creator economic system.

“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 up to date its phrases of service for US customers because the deal closed on Thursday.

It says the contract customers comply with is now between themselves and the platform’s new US entity, TikTok USDS Joint Venture.

There are a number of adjustments. One new rule says kids beneath the age of 13 can not use TikTok outdoors of its particular “Under 13 Experience”.

Another level says the brand new US entity “does not endorse any content” on the platform, nor does it mirror its views.

US customers who proceed to make use of TikTok from 22 January additionally should comply with the constraints of generative AI – corresponding to its potential to generate inaccurate, deceptive, inappropriate or illegal content material.

“By using the platform, including its generative AI-enabled features, you recognise and assume this risk,” it says.

Exactly what adjustments US customers will see to their TikTok app and feeds, on account of the deal, stays unclear.

The BBC has requested TikTok what’s going to change in its American expertise, and when.

But we all know its advice algorithm will probably be retrained on US consumer information – sparking concern for some over whether or not extremely personalised content material it serves might change.

Enberg says algorithm tweaks might have an effect on what individuals see and even create, doubtlessly “leading to a different look and feel” for US customers.

Dr Kokil Jaidka of the National University of Singapore beforehand stated whereas the app is “unlikely to suddenly feel different” for many, “changes are plausible”.

Differences that do seem to US customers are prone to be “subtle and gradual” – corresponding to weaker personalisation.

But locally-controlled, user-facing options corresponding to TikTok’s brief movies, influencer tradition and livestream buying could not change, she stated.

Using a licensed model of TikTok’s algorithm to energy its US model might additionally current “constraints around data access, update frequency, and integration with TikTok’s global systems,” Jaika stated.

But she stated adjustments might influence the For You feed – which “learns from massive, cross-regional feedback loops” to floor related content material – in addition to how movies are ranked and moderated.

However she stated many unknowns stay, with a lot relying “on how ByteDance tweaks the weaker links – such as data separation, update frequency, and oversight mechanisms – without degrading performance”.

TikTok in the meantime says the three way partnership will be capable of make the app appropriate with different apps and areas to present US customers “a global experience”.

Its press launch claims US creators will nonetheless be discoverable and companies will be capable of keep international attain.

CapCut and Lemon8 are two different fashionable apps owned by ByteDance accessed by US customers.

Previously, it was barely unclear what the regulation requiring TikTok’s sale or ban within the US might imply for its sister apps and their customers.

But each “went dark” within the US alongside TikTok when the ban briefly took impact in January 2025.

Their future within the US now seems to be secured, with TikTok saying “safeguards provided by the Joint Venture will also cover CapCut, Lemon8, and a portfolio of other apps and websites in the US”.