TikTok Finalizes New U.S. Version to Avoid Ban
TikTok has reached a significant agreement to establish a new version of its app in the United States, effectively averting a potential ban that has loomed for years. This move comes as the company partners with major investors, including Oracle and Silver Lake, to create a joint venture aimed at ensuring compliance with U.S. regulations.
Why It Matters
The finalization of this deal is crucial for TikTok as it alleviates years of uncertainty surrounding its operations in the U.S. Under increasing scrutiny, the platform faced legislative pressure that threatened its existence. This agreement signifies a proactive approach to addressing national security concerns while allowing the popular platform to continue serving its millions of American users.
Key Developments
- TikTok has signed agreements to form a new U.S. joint venture with investors including Oracle and Silver Lake.
- The new app will implement strict data protection and content moderation policies.
- Adam Presser, former head of operations and trust and safety at TikTok, will serve as CEO of the new venture.
- A majority-American board of directors will oversee operations, including TikTok’s existing CEO, Shou Chew.
Full Report
New Venture Details
The newly established TikTok U.S. joint venture is designed to operate with defined safeguards that aim to protect national security. According to a company statement, these safeguards will cover key areas such as comprehensive data protections, algorithm security, content moderation, and software assurances specifically for users in the United States.
Leadership Structure
Adam Presser will take the helm of the new venture as CEO, bringing a wealth of experience from his previous role at TikTok. He will lead a seven-member board, which is predominantly made up of American members, including TikTok’s CEO Shou Chew, thus ensuring a local governance structure that aligns with U.S. regulatory expectations.
Legislative Background
The agreement comes after significant political pressure on TikTok, primarily due to concerns over its ownership by China’s ByteDance. A bipartisan group in Congress pushed through a law mandating a ban on TikTok if it failed to find a new American owner by January 2025. This legislation added urgency to TikTok’s negotiations, emphasizing the stakes involved for the platform’s future in the U.S.
Context & Previous Events
After facing potential restrictions, TikTok had been in discussions regarding its ownership for years. In 2021, then-President Donald Trump had signed an executive order allowing TikTok to continue operating while seeking a sale. This agreement marks a pivotal moment in the platform’s ongoing evolution and its commitment to addressing national security concerns in the U.S.
