TikTok avoids a US ban through a deal that balances politics, data concerns, and the economic role of creators and small businesses.
TikTok’s Chinese owner, ByteDance, has signed agreements with American and global investors to run its US business, the company’s CEO Shou Zi Chew told employees.
The joint venture will give half of the business to investors including Oracle, Silver Lake, and Emirati firm MGX. ByteDance will keep 19.9%, while other ByteDance investors hold 30.1%. Oracle will also license TikTok’s recommendation algorithm.
The deal, closing on 22 January, ends years of US pressure to sell TikTok over national security concerns. It allows around 170 million Americans to keep using the app.
Senator Ron Wyden criticizes the TikTok deal, arguing it fails to meaningfully address US data privacy and national security concerns, despite changes to ownership and algorithm oversight.
This deal does nothing to meaningfully protect the privacy of American users. Shifting ownership on paper does not guarantee that TikTok’s algorithm is in safer hands.
Ron Wyden
Senate Democrat of Oregon
Content creator and small business owner Tiffany Cianci highlights the economic importance of TikTok for entrepreneurs and expresses cautious optimism about the platform’s future under new investors.
TikTok has said that more than seven million small businesses market their products and services on TikTok in the US.
I just want to know that small business owners will still be protected.
Tiffany Cianci
Small Business Owner
The Triangle of Sides
Power: TikTok as a geopolitical tool
TikTok has gradually become a bargaining chip in global politics. When India and China clashed at the border in 2020, India banned TikTok, calling it a national security risk. In the US, President Joe Biden pushed for a ban on similar grounds. Donald Trump took a different route, choosing negotiation over prohibition. Instead of shutting the app down, he turned it into a deal, reinforcing his image as a dealmaker. In this triangle, TikTok is leverage, not just an app.
Privacy: The China data concern
The central concern remains data. ByteDance is a Chinese company, and China operates under a one party system where companies can be legally required to cooperate with the state. TikTok says US user data will be handled locally under new ownership and oversight. Still, doubts remain about long term influence and access. For many governments, uncertainty itself is the risk.
Economy: The creator and small business impact
The third side of the triangle is economic reality. Millions of small businesses, creators, and entrepreneurs rely on TikTok for income and visibility. Their activity fuels a digital marketplace that boosts microeconomics.
As the world faces slowing growth, job pressure, and recession warnings, banning such a platform could cause economic damage.
TikTok now sits inside a triangle of power, privacy, and profit …
– Opinion | Daily ScrollDown
Source: BBC