Summary
TikTok announced a new deal that lets it keep operating in the United States. The deal involves a new American-controlled company and changes in how TikTok handles user data in the U.S. Users might notice some changes, but major disruptions are unlikely.
Key Facts
- TikTok has formed a new entity called TikTok USDS Joint Venture LLC, owned mainly by American investors.
- The new U.S. entity has seven directors, including TikTok CEO Shou Zi Chew.
- TikTok's algorithm, which picks which videos to show users, has been licensed to Oracle, a U.S. tech company.
- Oracle will oversee TikTok's U.S. user data and its content recommendation algorithm.
- TikTok updated its terms of service for U.S. users, now linking them to the new American entity.
- Children under 13 can only use TikTok's "Under 13 Experience."
- Users must agree to limitations of generative AI, acknowledging potential risks such as inaccurate content.
- TikTok has about 200 million users in the U.S., which is its largest global market.
