TikTok’s New Privacy Policy Sparks Concerns Over Location Data Collection
TikTok has updated its privacy policy to permit the collection of precise location data from its 200 million American users, a significant shift following a new joint venture with its Chinese parent company, ByteDance. This change comes amid ongoing scrutiny regarding user data security and privacy amid U.S.-China relations.
Why It Matters
The modifications to TikTok’s privacy terms amplify concerns among American users and lawmakers about data safety. The app’s ability to collect more specific location data raises questions about potential misuse and the influence of foreign entities, particularly given its ties to China.
Key Developments
- TikTok’s new policy allows the collection of precise location data, a shift from the previous policy which limited data to approximate locations.
- The updates come after investors reached a deal with ByteDance to manage TikTok’s U.S. operations.
- Though precise location tracking hasn’t been activated yet for U.S. users, it is expected to be optional and disabled by default.
- The joint venture also expands permission to gather data on user interactions with TikTok’s artificial intelligence features.
- Oracle, a major investor in the joint venture, will oversee data security measures, including the management of TikTok’s recommendation algorithm.
- ByteDance retains a minority stake of nearly 20% in the new venture.
Full Report
Changes to Privacy Policy
The updated privacy terms from TikTok indicate that the company may now collect precise location data based on user settings. This marks a notable change from the previous approach, which only allowed for approximate location data collection through a user’s SIM card or IP address. Previously, even approximate GPS data collection had not been permitted in the U.S. Under the new terms, users will have the opportunity to opt-in or disable location services in their device settings.
Joint Venture Formation
The recent joint venture, TikTok USDS Joint Venture LLC, involves investments from Oracle, Silver Lake, and the Abu-Dhabi state-owned fund MGX. Oracle, led by longtime Trump ally Larry Ellison, will play a crucial role in the management of TikTok’s data, especially concerning its content recommendation algorithm, which will be secured in Oracle’s U.S. cloud environment. This arrangement follows the passage of a 2024 law that requires the sale of TikTok’s U.S. operations if ByteDance does not comply by January 2025.
Government Concerns
Concerns over ByteDance’s continuing role in TikTok’s operations were voiced by Republican Representative John Moolenaar, who expressed skepticism about whether the new deal would eliminate Chinese influence over the algorithm. In a statement, he emphasized the urgent need for answers regarding U.S. user data security amidst ongoing Washington-Beijing tensions.
Context & Previous Events
Previous attempts to ban TikTok during the Trump administration were driven by national security concerns related to data access by the Chinese government. A law enforced in 2024 mandates the platform’s sale by ByteDance if the ownership structure does not change by early 2025. The recent updates and the joint venture’s announcement highlight the complexities of navigating data privacy in a geopolitical context.
