TikTok has finalised a deal to continue its operations in the US amid security concerns. This agreement involves a new joint venture with major investors like Oracle and MGX, addressing previous uncertainties surrounding the platform.
International
-Sathish Raman
AP
TikTok
has
secured
a
deal
to
continue
its
operations
in
the
US
after
years
of
uncertainty.
This
agreement,
involving
major
investors
like
Oracle,
Silver
Lake,
and
MGX,
has
formed
a
new
TikTok
US
joint
venture.
However,
questions
linger
about
potential
changes
in
user
experience
and
whether
these
changes
address
security
concerns
surrounding
the
app.
image
TikTok
has
finalised
a
deal
to
continue
its
operations
in
the
US
amid
security
concerns.
This
agreement
involves
a
new
joint
venture
with
major
investors
like
Oracle
and
MGX,
addressing
previous
uncertainties
surrounding
the
platform.
American
TikTok
users
will
keep
using
the
same
app,
but
it’s
unclear
how
their
feeds
might
change.
The
algorithm,
which
is
crucial
for
its
engaging
video
feed,
will
be
licensed
from
ByteDance.
It
will
be
retrained
using
US
user
data,
potentially
altering
personalised
feeds.
Jasmine
Enberg
from
eMarketer
noted
that
any
noticeable
changes
could
risk
alienating
users.
Security
Concerns
and
Algorithm
Changes
The
updated
Terms
of
Service
indicate
that
while
users
own
their
content,
TikTok
can
use
it
to
improve
the
platform.
Users
under
13
will
have
a
restricted
experience.
Additionally,
those
posting
AI-generated
content
must
label
it
accordingly.
Despite
these
updates,
the
deal
doesn’t
fully
address
security
concerns
raised
by
lawmakers.
Congress
passed
legislation
in
2024
requiring
TikTok’s
divestment
from
ByteDance
due
to
fears
of
Chinese
government
influence.
The
law
prohibits
cooperation
on
content
recommendation
algorithms
between
ByteDance
and
new
American
owners.
It’s
uncertain
how
ByteDance’s
continued
involvement
will
unfold
since
they
will
license
the
algorithm
to
the
US
entity.
Impact
on
Businesses
and
Creators
Skip
Chapman,
co-owner
of
KAFX
Body
in
New
Jersey,
launched
his
business
on
TikTok
in
April
2023.
He
expressed
relief
over
the
deal
as
it
removes
the
threat
of
a
ban
that
loomed
over
his
business.
While
he
remains
optimistic
about
TikTok’s
future
under
new
ownership,
he
worries
about
potential
shifts
in
e-commerce
priorities.
Vanessa
Barreat,
owner
of
La
Vecindad
Mexican
restaurant
in
Las
Vegas,
has
over
100,000
followers
on
her
restaurant’s
TikTok
page.
This
visibility
has
helped
attract
customers
and
reduce
marketing
costs.
She
remains
cautiously
optimistic
about
the
deal’s
impact
on
her
business.
Political
Ties
and
Content
Moderation
Larry
Ellison,
Oracle’s
co-founder
with
ties
to
former
President
Trump,
is
now
a
key
figure
in
this
deal.
His
involvement
raises
concerns
about
content
moderation
and
potential
political
bias
on
American
users’
feeds.
Forrester
analyst
Kelsey
Chickering
warned
that
biased
moderation
or
misinformation
could
drive
users
to
rival
platforms.
“If
moderation
happens
to
tilt
toward
one
political
viewpoint
or
fails
to
curb
misinformation,
TikTok
risks
a
user
exodus
to
rival
platforms,” Chickering
said.
“We’ve
seen
this
before
when
Twitter’s
transformation
into
X
triggered
fallout
from
users
and
advertisers.”
The
retrained
algorithm
will
make
trends
feel
distinctly
American
while
still
featuring
global
content
with
altered
rankings.
This
change
could
affect
TikTok’s
cultural
appeal
and
engagement
levels
among
users.
TikTok
claims
US
creators
will
remain
discoverable
globally,
allowing
businesses
to
maintain
their
reach.
However,
how
interoperability
between
the
US
and
ByteDance
will
work
remains
uncertain.
The
new
ownership
structure
aims
to
address
security
concerns
while
maintaining
TikTok’s
global
presence.
As
changes
unfold,
both
users
and
creators
are
adopting
a
wait-and-see
approach
regarding
potential
impacts
on
their
experiences
and
businesses.
With
inputs
from
PTI
