What does a new US TikTok deal mean for users?
41 minutes ago Share Save Liv McMahon Technology reporter Share Save
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TikTok has announced a deal allowing it to continue operating in the US. But with the platform's future in the country seemingly secured, its 200 million American users are expected to see some changes.
What is the US TikTok deal?
A majority-American board now owns and operates a separate entity controlling TikTok in the US. Backed by mostly US investors, the newly established TikTok USDS Joint Venture LLC is governed by a board of seven directors. TikTok chief executive Shou Zi Chew is among them, and its Chinese owner ByteDance will retain a 19.9% stake in the business. The content recommendation algorithm at the heart of TikTok - determining which videos show up on the app's For You feed - has been licensed to tech firm Oracle. Headed by Trump ally Larry Ellison, Oracle already oversees TikTok US user data under a previous arrangement set up over security concerns called Project Texas. But the company will now secure more of the app, including by retraining and updating its recommendation algorithm based on US user data. TikTok says both the algorithm and US user data will be protected in "Oracle's secure US cloud environment".
Will I have to download a new app?
Something TikTok and those behind its new US joint venture will be keen to avoid is too much disruption - so making users download a new app seems unlikely. The US is believed to be the platform's largest global market, with 200 million users, according to TikTok. It faces growing competition from Instagram and its short form video feature Reels - which parent firm Meta has boosted within its apps used by billions. And experts and analysts have warned changing TikTok too much or requiring users to move to a new app could put users 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 company and podcast focused on the creator economy. "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."
Have TikTok US terms and conditions changed?
TikTok updated its terms of service for US users as the deal closed on Thursday. It says the contract users agree to is now between themselves and the platform's new US entity, TikTok USDS Joint Venture. There are several changes. One new rule says children under the age of 13 cannot use TikTok outside of its specific "Under 13 Experience". Another point says the new US entity "does not endorse any content" on the platform, nor does it reflect its views. US users who continue to use TikTok from 22 January also must agree to the limitations of generative AI - such as its potential to generate inaccurate, misleading, inappropriate or unlawful content. "By using the platform, including its generative AI-enabled features, you recognise and assume this risk," it says.
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