
Controversial social media platform TikTok appears to have managed to avoid being banned in the US. After months of delays and negotiations, TikTok USDS Joint Venture LLC has been established to comply with US regulatory requirements.
The deal sees Chinese owners ByteDance creating a separate American-owned majority venture. ByteDance will retain less than 20 percent ownership, with other investors including Oracle.
While the new US venture is, for all intents and purposes, separate to TikTok’s Chinese arm, this does not mean a different experience for users in the US. “Interoperability enables the Joint Venture to provide U.S. users with a global TikTok experience, ensuring U.S. creators can be discovered and businesses can operate on a global scale”.
A joint statement by TikTok USDS Joint Venture LLC reads:
TikTok USDS Joint Venture LLC has been established in compliance with the Executive Order signed by President Trump on September 25, 2025, now enabling more than 200 million Americans and 7.5 million businesses to continue to discover, create, and thrive as part of TikTok’s vibrant global community and experience. The majority American owned Joint Venture will operate under defined safeguards that protect national security through comprehensive data protections, algorithm security, content moderation, and software assurances for U.S. users.
TikTok USDS Joint Venture’s mandate is to secure U.S. user data, apps and the algorithm through comprehensive data privacy and cybersecurity measures. It will safeguard the U.S. content ecosystem through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications.
The deal has been a very long time in the making. It is now five years since Donald Trump, during his first presidential term, threatened to ban TikTok completely in the US. There then followed delays, threats, silence, and now this new arrangement.
Security and privacy have been concerns for some time, and the new joint venture address these by pointing out safeguards:
- Data Protection: U.S. user data will be protected by USDS Joint Venture in Oracle’s secure U.S. cloud environment. The Joint Venture will operate a comprehensive data privacy and cybersecurity program that is audited and certified by third party cybersecurity experts. The program will adhere to major industry standards, including the National Institute of Standards and Technology (NIST) CSF and 800-53 and ISO 27001 as well as the Cybersecurity & Infrastructure Security Agency (CISA) Security Requirements for Restricted Transactions.
- Algorithm Security: The Joint Venture will retrain, test, and update the content recommendation algorithm on U.S. user data. The content recommendation algorithm will be secured in Oracle’s U.S. cloud environment.
- Software Assurance: The Joint Venture will secure U.S. apps through software assurance protocols, and review and validate source code on an ongoing basis, assisted by its Trusted Security Partner, Oracle.
- Trust & Safety: The Joint Venture will safeguard the U.S. content ecosystem and have decision-making authority for trust and safety policies and content moderation.
The statement adds: “The safeguards provided by the Joint Venture will also cover CapCut, and Lemon8, and a portfolio of other apps and websites in the U.S.”.
A full list of staff appointment is included in the announcement which concludes by saying:
TikTok USDS Joint Venture LLC is dedicated to the safety and security of millions of Americans who create, discover, and connect with what they love on the apps we operate. The Joint Venture has been established in compliance with the Executive Order signed by President Trump on September 25, 2025. Our foundation is a comprehensive data privacy and cybersecurity program we operate under defined safeguards to protect national security and secure U.S. user data, apps and the algorithm. We safeguard the U.S. content ecosystem, holding decision-making authority for trust and safety policies and moderation. USDS Joint Venture helps ensure Americans can continue to express their creativity, discover new hobbies and interests, and build thriving communities and businesses on a global scale.
Image credit: Yalcinsonat / Dreamstime.com
