American investors have completed a $14 billion TikTok deal that gives them control over the U.S. version of TikTok. This major move has raised many questions about the Future of the popular social media app and its millions of American users.
Under the new setup, a group of U.S. investors led by Oracle and private equity firm Silver Lake will own more than 80% of TikTok’s U.S. business. TikTok currently has around 66 million daily users in the United States. The goal of this deal is to reduce Chinese influence over the app and avoid a nationwide ban that was ordered by Congress in 2024.
TikTok shared limited details about the agreement in a late-night announcement, but many key points remain unclear. Lawmakers are now examining whether the TikTok deal fully follows U.S. law and whether it truly protects national security. Below are five key questions that remain.
1. What Will Happen to TikTok’s Algorithm?
The TikTok algorithm is one of the main reasons the app is so popular. It carefully selects videos for users, keeping them scrolling for hours. However, U.S. lawmakers worry that China could use this system to influence content or collect data.
TikTok says the new U.S. owners will retrain, test, and update the algorithm using only U.S. user data. While this may reduce some risks, it is still unclear whether it complies with the 2024 law, which bans cooperation between ByteDance and the U.S. version of TikTok when running the algorithm.
Experts say the biggest issue is ownership. If ByteDance still controls or licenses the algorithm, it could still influence what Americans see on TikTok.
2. Will TikTok Still Be Banned on Government Devices?
TikTok is already banned on federal government devices under a law signed in 2022. At least 39 U.S. states have similar bans, including California and New York. Congress also has its own internal TikTok restrictions.
Even after the TikTok deal, these bans will not automatically end. New laws would be required at both the federal and state levels, which could be very difficult to pass. Legal experts say the president does not have the power to overturn these bans alone.
3. Could TikTok Face Heavy Fines in the Future?
In January 2025, TikTok briefly shut down in the U.S. after the ban law took effect. The app returned after President-elect Donald Trump promised not to enforce fines against companies that support TikTok.
However, legal experts warn that a promise is not the same as changing the law. The law allows companies to be fined $5,000 per user per day for breaking the rules. A future administration could decide the TikTok deal is illegal and enforce these penalties. There is also a five-year window for the government to challenge any violations.
4. Does the TikTok Deal Solve National Security Concerns?
The White House has suggested that the TikTok deal resolves security concerns because ByteDance now owns less than 20% of the U.S. business and cannot access American user data.
Still, many lawmakers, especially Republicans, say they will closely review the agreement. Some experts believe the law is vague enough that the deal may pass muster under the law, even if it does not fully reflect Congress’s original intent.
5. How Does the Deal Protect User Data From China?
Under the 2024 law, TikTok and ByteDance are prohibited from sharing user data. According to TikTok, all U.S. user data will now be stored on Oracle’s cloud servers.
The company says it will run strong data privacy and cybersecurity programs, checked by independent experts. Some analysts believe this part of the TikTok deal effectively solves the data-sharing problem.
However, concerns remain about how advertising systems and the algorithms are managed, which could still raise legal issues.
TikTok’s Future in the U.S.
The new TikTok deal is a major step toward keeping the app alive in the United States, but it does not end the debate. Questions about the algorithm, government bans, future fines, and national security are still unresolved.
For now, TikTok remains available to U.S. users, but its long-term Future will depend on how lawmakers and future administrations interpret and enforce the law.
