TikTok in America at least, has officially cut ties with ByteDance, the China-based technology company. The American version of the popular social media app is now owned by a new entity called TikTok USDS Joint Venture LLC. This news has prompted some users to have concerns about TikTok’s new privacy policy.
When did this deal happen?
On January 22, 2026, TikTok had a press release confirming the app’s new ownership. The majority of TikTok’s American ownership comes from U.S. and allied investors such as Oracle, Silver Lake, MGX, Dell Family Office, Vastmere Strategic Investments, and Alpha Wave Partners. Byte has a stake of less than 20% ownership.
USDS Joint Venture LLC was formed to bypass an executive order that forced ByteDance to sell its stake or be completely cut off from the U.S. market. On the same day as the press release, the company put out its new user terms and conditions, as well as a new privacy policy.
What does this mean for users?
According to TikTok’s new privacy policy, the app might collect “precision location information” from users’ devices if location services are enabled in their device settings. These geolocation practices are a change from their previous policy when the app was under ByteDance.
While the company plans to use this “precise location data” to provide new services and features to users, people will be able to opt out of sharing their precise location by turning off their location services. Since the release, TikTok has updated its privacy policy to be clearer when it comes to location information.
However, the new policy does affect how TikTok handles sensitive data. The company states that it “processes such sensitive personal information in accordance with applicable law.”
TikTok’s algorithm is now handled by Oracle, meaning users might notice little changes in content recommendations over time, which users have mixed feelings about. Some experts are worried about bias in the app’s content feed when it comes to the future of TikTok’s algorithm, especially since Oracle’s Executive Chairman and Chief Technology Officer Larry Ellison is an ally of President Donald Trump. This prompts concerns about whether political influences from Republicans will be promoted on TikTok.
TikTok is determined to hold their ground, saying that the ownership shift is a huge step in protecting its integrity. The company believes that its new structure allows TikTok to “safeguard the U.S. content ecosystem and have decision-making authority for trust and safety policies and content moderation,” according to ABC News.
The Reason Behind TikTok’s Ownership
TikTok’s new ownership was due to U.S. national security concerns over China’s access to American user data and the platform’s algorithm. The switch to U.S. ownership complies with the executive order signed in September 2025 by the Trump Administration, created to make sure that TikTok’s U.S. operations would be mainly American-owned while maintaining user access to the platform. The company believes that being under a U.S. entity allows Americans to ” express their creativity, discover new hobbies and interests, and build thriving communities and businesses on a global scale,” without risking a government-issued ban.
Will you keep TikTok on your phone? What do you think of this change? Let us know in the comments!
