Key Takeaways
1. TikTok has avoided a ban in the US by allowing ByteDance to give up control over its American operations, algorithms, and user data.
2. The “Protecting Americans from Foreign Adversary Controlled Applications Act” increased pressure on TikTok, citing national security concerns.
3. TikTok’s US operations will be transferred to a joint venture mainly owned by American individuals, with ByteDance holding less than 20% ownership.
4. Oracle will oversee TikTok’s security in the US, managing user data and content moderation decisions within American facilities.
5. This change allows for greater access by security agencies to user activities and gives President Trump potential oversight of politically targeted advertisements on the platform.
TikTok has dodged a ban in the United States after ByteDance, its parent company, agreed to give up control over its American operations, algorithms, and user data. This decision comes after a deal between Chinese leader Xi and former President Trump was reached on the issue.
Background of the Situation
The pressure on TikTok increased when President Biden enacted the “Protecting Americans from Foreign Adversary Controlled Applications Act” (H.R. 7521) in April 2024, which aimed to force the app out of the US market. The main concern was that the foreign ownership and control of the app posed a threat to national security because of how user data could be accessed.
Following a series of appeals and extensions, President Trump issued an executive order on September 25, 2025, prolonging the potential ban for an additional 120 days. He received confirmation that it was possible for TikTok’s US operations to be transferred, which would allow the process to proceed smoothly.
Details of the Divestiture
The plan involves transferring TikTok’s US operations to a joint venture primarily owned and managed by American individuals. ByteDance can keep less than 20% ownership, while unnamed investors will hold the rest.
Oracle has been selected to oversee the security of TikTok in the United States. Moreover, all algorithms, code, and decisions regarding content moderation will fall under American oversight. User data will also be stored in facilities located within the US, which will be managed by Oracle.
Implications for User Privacy and Control
This divestiture marks a significant moment, as it transforms the only widely used foreign social media platform in the US to one that is under American control. This change will allow security agencies to have complete access to user activities, similar to how the NSA can monitor communications from US cellular companies. It could also provide President Trump the power to review any algorithms linked to politically targeted advertisements on TikTok in the US market.
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