TikTok finalized a deal to restructure its U.S. operations, allowing the popular short-video app to continue operating in the United States and averting a potential ban. The agreement, announced on Thursday, addresses national security concerns raised by the U.S. government by licensing its algorithm to American owners and training it solely on U.S. user data.
The deal comes after years of tension between Washington and Beijing, beginning during Donald Trump's presidency when he unsuccessfully attempted to ban the app over national security concerns, according to BBC Technology. The platform faced a potential ban in the U.S. in January 2025 if its Chinese owner, ByteDance, did not sell its U.S. operations to American investors. However, President Trump repeatedly postponed the enforcement of the ban.
Multiple news sources confirmed the restructuring, which involves licensing the algorithm to American owners and exclusively training it on U.S. user data. This move aims to satisfy U.S. regulatory demands and alleviate national security concerns. The agreement signifies a significant shift in TikTok's operational structure.
The impact of the algorithm change on TikTok's 200 million American users remains uncertain, according to BBC Technology. The deal allows TikTok to continue operating in the U.S. market, but the long-term effects of the restructured operations are yet to be seen.
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