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What are the security concerns with TikTok in the US?
US authorities have long worried that TikTok could be used by China for data collection or propaganda. The app's Chinese parent company, ByteDance, was accused of potentially sharing user data with the Chinese government. These concerns led to legal actions and calls for TikTok to be sold or restricted in the US.
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How will the joint venture affect TikTok's operations?
The new deal creates a US-based joint venture, TikTok USDS LLC, with American investors like Oracle, Silver Lake, and MGX holding significant stakes. This structure aims to keep TikTok's US operations under American oversight, reducing security risks while allowing the app to continue functioning normally for users.
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Will this change how Americans use TikTok?
For most users, TikTok will look and feel the same. The app's features and content are expected to stay unchanged. However, the new ownership structure is designed to improve data security and reassure users that their information is protected under US law.
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What does the deal mean for data privacy?
The deal is intended to enhance data privacy by placing TikTok's US operations under American control. This means user data will be stored in the US and subject to US privacy laws, reducing fears that data could be accessed by foreign governments.
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When will the deal be finalized?
The agreement is set to close on January 22, 2026. Until then, TikTok will continue to operate under existing regulations, but the new ownership structure is expected to bring significant changes in how the app is managed and secured.
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Could this deal lead to TikTok being banned again?
While the deal aims to address security concerns, there is always a possibility that future political or legal developments could impact TikTok's status in the US. However, the current agreement is a major step toward ensuring TikTok's continued presence in the country.