TikTok’s new U.S. ownership faces significant challenges, including service outages and user concerns about content restrictions, raising questions about the app’s future.
TikTok’s newly established U.S. ownership is encountering unexpected difficulties shortly after taking control of the popular social media platform, leading to growing concerns among users and industry observers about the app’s future.
Over the past weekend, thousands of American TikTok users reported issues with the app, including feeds that failed to load and “For You” pages that did not refresh. Consumer outage tracker Downdetector recorded over half a million user reports within a 24-hour period, peaking on Sunday morning. Many users expressed frustration, stating they could neither upload videos nor access new content.
These outages occurred just days after TikTok announced the completion of a significant restructuring that transferred control of its U.S. operations to a new joint venture, primarily owned by American investors. This move was mandated under U.S. law due to ongoing national security concerns regarding foreign ownership, which had threatened a ban on the app.
In a statement posted on the social media platform X, the newly formed TikTok USDS Joint Venture attributed the app’s “disruptions” to a power failure at a U.S. data center. “We’re working with our data center partner to stabilize our service,” the joint venture stated. “We’re sorry for this disruption and hope to resolve it soon.”
The managing investors of the venture each hold a 15 percent stake and include Oracle, the Silicon Valley cloud computing company co-founded by billionaire Larry Ellison; private equity firm Silver Lake; and the Abu Dhabi-based investment group MGX. ByteDance, TikTok’s former parent company based in China, retains a minority stake of just under 20 percent as part of the U.S. ownership deal.
This change in ownership was intended to ensure TikTok’s continued operation in the United States amid increasing political and regulatory pressure. A 2024 law aimed to compel ByteDance to divest TikTok’s American operations or face removal from U.S. app stores, a ruling upheld by the Supreme Court last year. The joint venture was established to “protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users,” according to their press release.
Despite the establishment of a U.S.-controlled entity, many users have reported that the platform already feels different. Several social media posts from users suggested that politically themed content, such as videos addressing recent immigration enforcement actions and the Israeli-Palestinian conflict, appeared to be missing from the algorithm. Users have also reported difficulties in uploading videos related to political issues, although TikTok has not confirmed any intentional content restrictions.
It appears that the primary motivation for the joint venture may be more about control than national security concerns, as indicated by user posts on social media stating, “the new TikTok algorithm has ZERO, and I mean absolutely ZERO news or politics content.”
For many creators, TikTok remains a vital platform for reaching audiences and generating income. However, the early technical issues have ignited fresh discussions about whether the new ownership structure will impact the app’s performance or influence the content users see. Analysts suggest that broader changes to data handling and the recommendation algorithm, now being localized for U.S. users, could also affect how content is served on the platform.
As the joint venture works to resolve the outages and stabilize service, both users and industry observers will be closely monitoring the situation to determine if this rocky start signals longer-term challenges for TikTok’s new chapter, according to The American Bazaar.