{"id":42330,"date":"2026-02-13T12:06:11","date_gmt":"2026-02-13T10:06:11","guid":{"rendered":"https:\/\/europeanvalues.cz\/?p=42330"},"modified":"2026-02-15T18:57:49","modified_gmt":"2026-02-15T16:57:49","slug":"tiktok-after-the-sale-new-structure-familiar-risks","status":"publish","type":"post","link":"https:\/\/europeanvalues.cz\/en\/tiktok-after-the-sale-new-structure-familiar-risks\/","title":{"rendered":"TikTok After the Sale: New Structure, Familiar Risks"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"42330\" class=\"elementor elementor-42330\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2188bf1a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2188bf1a\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3a7f112\" data-id=\"3a7f112\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-28e85e4c elementor-widget elementor-widget-text-editor\" data-id=\"28e85e4c\" data-element_type=\"widget\" data-e-type=\"widget\" data-no-translation=\"\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Photo: Canva.com<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6d88833a elementor-widget elementor-widget-text-editor\" data-id=\"6d88833a\" data-element_type=\"widget\" data-e-type=\"widget\" data-no-translation=\"\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<style>.elementor-element-6d88833a{display:none !important}<\/style>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-77b6a500 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"77b6a500\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4a0e50ac\" data-id=\"4a0e50ac\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-465ad585 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"465ad585\" data-element_type=\"section\" data-e-type=\"section\" data-no-translation=\"\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-1d9ff5d2\" data-id=\"1d9ff5d2\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-6360d261 elementor-widget elementor-widget-text-editor\" data-id=\"6360d261\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2>What happened?<\/h2><p>TikTok executives have <a href=\"https:\/\/www.bbc.com\/news\/articles\/c3edd1l328lo\" target=\"_blank\" rel=\"noopener\">completed<\/a> a deal creating a separate U.S.-based entity to control the social media platform\u2019s American operations. The newly <a href=\"https:\/\/www.theguardian.com\/us-news\/2026\/jan\/22\/tiktok-us-venture-oracle\" target=\"_blank\" rel=\"noopener\">formed<\/a> TikTok <a href=\"https:\/\/newsroom.tiktok.com\/announcement-from-the-new-tiktok-usds-joint-venture-llc?lang=en\" target=\"_blank\" rel=\"noopener\">USDS Joint Venture LLC<\/a> is majority owned by U.S. investors and governed by a seven-member board, with ByteDance, the current China-based owner, retaining a 19.9% stake. The ownership structure includes investments of 15% by Oracle, Silver Lake, and Abu Dhabi\u2019s MGX respectively. Oracle will also provide cloud services. Binding agreements were <a href=\"https:\/\/www.reuters.com\/business\/american-investor-consortium-acquire-tiktok-us-entity-axios-reports-2025-12-18\/\" target=\"_blank\" rel=\"noopener\">signed<\/a> in December, and finalization of the deal was <a href=\"https:\/\/newsroom.tiktok.com\/announcement-from-the-new-tiktok-usds-joint-venture-llc?lang=en\" target=\"_blank\" rel=\"noopener\">announced<\/a> on January 23. The transaction ends over a 5-year legal and political dispute that began during U.S. President Donald Trump\u2019s first term.<\/p><h2>\u00a0<\/h2><h2>What is the broader picture?<\/h2><p>U.S. scrutiny of TikTok began in 2019, when two members of the Senate Intelligence Committee asked for a <a href=\"https:\/\/www.washingtonpost.com\/technology\/2019\/10\/24\/tiktok-raises-national-security-concerns-congress-schumer-cotton-ask-federal-review\/\" target=\"_blank\" rel=\"noopener\">security review<\/a> on implications of the app\u2019s U.S. operations. Lawmakers focused primarily on the data TikTok collected from American users and the possibility that such data could be accessed by Chinese authorities through ByteDance, TikTok\u2019s parent company, which is based in China.<\/p><p>The concerns quickly moved beyond Congress. In December 2019, the U.S. Army and Navy <a href=\"https:\/\/www.military.com\/daily-news\/2019\/12\/30\/army-follows-pentagon-guidance-bans-chinese-owned-tiktok-app.html\" target=\"_blank\" rel=\"noopener\">instructed<\/a> personnel to delete TikTok from all government-issued devices, citing security risks. The issue reached the White House the following year. In August 2020, then-president Donald Trump issued an <a href=\"https:\/\/trumpwhitehouse.archives.gov\/presidential-actions\/executive-order-addressing-threat-posed-tiktok\/\" target=\"_blank\" rel=\"noopener\">executive order<\/a> requiring ByteDance to sell TikTok\u2019s U.S. operations to a government-approved buyer or face a nationwide ban. The order cited not only data-security risks but also concerns that the platform could be used to suppress politically sensitive content or facilitate the spread of disinformation in line with the interests of the Chinese Communist Party.<\/p><p>Several potential buyers, including Walmart and <a href=\"https:\/\/blogs.microsoft.com\/blog\/2020\/09\/13\/microsoft-statement-on-tiktok\/\" target=\"_blank\" rel=\"noopener\">Microsoft<\/a>, entered talks with ByteDance, but no sale was completed. Instead, ByteDance proposed a partnership with <a href=\"https:\/\/www.prnewswire.com\/news-releases\/oracle-confirms-statement-301130173.html\" target=\"_blank\" rel=\"noopener\">Oracle<\/a>, under which the U.S. Silicon Valley company would serve as a \u201ctrusted technology provider\u201d and host American user data on its cloud infrastructure. The arrangement was presented as a compromise <a href=\"https:\/\/www.cnet.com\/news\/politics\/the-tiktok-saga-everything-you-need-to-know\/\" target=\"_blank\" rel=\"noopener\">intended<\/a> to address Washington\u2019s security concerns without a forced divestment.<\/p><p>The arrangement was never fully tested. Before its effectiveness <a href=\"https:\/\/www.congress.gov\/crs-product\/R46543\" target=\"_blank\" rel=\"noopener\">could be evaluated<\/a>, the change of administration in the U.S. in January 2021 brought an abrupt shift in policy. President Joe Biden <a href=\"https:\/\/trumpwhitehouse.archives.gov\/presidential-actions\/executive-order-addressing-threat-posed-tiktok\/\" target=\"_blank\" rel=\"noopener\">revoked<\/a> Trump\u2019s executive order, removing the immediate threat of a ban on TikTok. At the same time, his administration continued investigations into whether TikTok posed an ongoing national security risk.<\/p><p>Later findings, however, showed that, despite the Oracle partnership, ByteDance engineers in China <a href=\"https:\/\/www.buzzfeednews.com\/article\/emilybakerwhite\/tiktok-tapes-us-user-data-china-bytedance-access\" target=\"_blank\" rel=\"noopener\">retained access<\/a> to sensitive U.S. user data. Separate reports described instances of <a href=\"https:\/\/www.forbes.com\/sites\/emilybaker-white\/2022\/10\/20\/tiktok-bytedance-surveillance-american-user-data\/\" target=\"_blank\" rel=\"noopener\">targeted surveillance<\/a> of specific users, including <a href=\"https:\/\/www.ft.com\/content\/0c0f9670-2e3a-4af8-bcd5-85e314f6ac5e\" target=\"_blank\" rel=\"noopener\">journalists<\/a>, and the collection of data related to users\u2019 <a href=\"https:\/\/www.wsj.com\/tech\/tiktok-tracked-users-who-watched-gay-content-prompting-employee-complaints-5966a5f5\" target=\"_blank\" rel=\"noopener\">consumption of LGBTQ+ content<\/a>.<\/p><p>Those findings fed into a renewed legislative push. As the investigations continued, TikTok representatives said the company would move U.S. user data off shared Oracle infrastructure and build its own data centers under a plan known as <a href=\"https:\/\/www.lawfaremedia.org\/article\/what-happened-to-tiktok-s-project-texas\" target=\"_blank\" rel=\"noopener\">Project Texas<\/a>. The proposal failed to persuade lawmakers that security concerns would be resolved.<\/p><p>In April 2024, Biden signed <a href=\"https:\/\/www.congress.gov\/bill\/118th-congress\/house-bill\/7521\" target=\"_blank\" rel=\"noopener\">an act<\/a> requiring ByteDance to sell TikTok to a U.S.-approved buyer within nine months or face a nationwide ban. In the final weeks before the bill\u2019s passage, TikTok launched an <a href=\"https:\/\/www.politico.com\/news\/2024\/03\/07\/tiktok-vs-washington-its-on-00145727\" target=\"_blank\" rel=\"noopener\">aggressive campaign<\/a>, urging users through app pop-ups to contact their representatives to express opposition to the measure.<\/p><p>The divestment deadline expired on January 19, 2025, one day before Trump\u2019s second inauguration. TikTok temporarily <a href=\"https:\/\/www.npr.org\/2025\/01\/18\/nx-s1-5266146\/tiktok-offline-supreme-court-ban\" target=\"_blank\" rel=\"noopener\">shut down<\/a> its U.S. operations that day, displaying a message to users apologizing for the disruption while expressing hope for a resolution from Trump. Service was restored hours later after the new president signaled his intention to delay enforcement of the ban. Since then, the deadline has been extended <a href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/2025\/09\/further-extending-the-tiktok-enforcement-delay-9dde\/\" target=\"_blank\" rel=\"noopener\">four<\/a> times, until the current finalization.<\/p><h2>\u00a0<\/h2><h2>Why does it matter<\/h2><p>The TikTok sell-off was presented as a solution to long-standing concerns over sensitive U.S. user data potentially flowing to China. With Oracle emerging as the majority stakeholder in the new entity, however, fundamental questions remain unresolved. This was not the first time Oracle was tasked with reassuring the American public about the security of their TikTok data. The company had already been deeply involved in TikTok\u2019s U.S. infrastructure under previous arrangements, while <a href=\"https:\/\/www.theregister.com\/2022\/06\/20\/tiktok_usa_oracle\/\" target=\"_blank\" rel=\"noopener\">failing<\/a> to keep American user data safe. Based on this, the logic of treating Oracle as a definitive safeguard appears, at best, inconsistent.<\/p><p>Attention has also <a href=\"https:\/\/www.nytimes.com\/2025\/04\/02\/technology\/trump-larry-ellison-tiktok-oracle.html\" target=\"_blank\" rel=\"noopener\">focused<\/a> on Oracle\u2019s leadership. Larry Ellison, the company\u2019s chairman \u2014 and now the <a href=\"https:\/\/www.forbes.com\/real-time-billionaires\/\" target=\"_blank\" rel=\"noopener\">fourth<\/a> richest person on the planet \u2014 currently sits at the apex of a rapidly expanding media empire. Through the TikTok acquisition and the separate takeover of Paramount <a href=\"https:\/\/www.forbes.com\/sites\/phoebeliu\/2025\/07\/29\/how-worlds-second-richest-person-larry-ellison-david-ellison-his-son-8-billion-skydance-paramount-deal\/\" target=\"_blank\" rel=\"noopener\">led<\/a> by his son David Ellison, the Ellison family has gained control over a substantial segment of the U.S. information space. The result is worrisome vertical and horizontal media concentration.<\/p><p>Only days after the change in ownership, fresh concerns have emerged over content moderation on the U.S. version of TikTok. Updated terms of service have drawn <a href=\"https:\/\/www.tomsguide.com\/computing\/social-media\/is-tiktok-u-s-broken-or-working-as-intended-3-terrifying-terms-of-service-changes-may-explain-whats-really-going-on\" target=\"_blank\" rel=\"noopener\">criticism<\/a> for significantly expanding the platform\u2019s ability to collect precise user location data.<\/p><p>Separate claims have started <a href=\"https:\/\/www.bbc.com\/news\/articles\/ckgjedpn8p8o\" target=\"_blank\" rel=\"noopener\">circulating<\/a> about possible content suppression related to politically sensitive topics for the Trump administration, including <a href=\"https:\/\/www.theguardian.com\/commentisfree\/2026\/jan\/30\/tiktok-us-takeover-new-type-of-censorship\" target=\"_blank\" rel=\"noopener\">references<\/a> to the Epstein files or protests in Minneapolis. Users reported difficulties uploading videos containing certain keywords. There were also reports of videos attracting unusually low view counts\u2026 It is important to note, however, that researchers at political science and analysis website <a href=\"https:\/\/goodauthority.org\/news\/was-there-censorship-on-tiktok-after-the-u-s-takeover\/\" target=\"_blank\" rel=\"noopener\">Good Authority<\/a> have not been able to verify these claims. Their inability to do so was explained partially by scarcity of reliable data access to researchers. Oracle has <a href=\"https:\/\/usdsjv.tiktok.com\/Technical-issues-impacting-TikTok-US-service\" target=\"_blank\" rel=\"noopener\">denied<\/a> allegations of censorship, attributing irregularities to technical issues such as power outages.<\/p><p>The issue has also <a href=\"https:\/\/www.politico.eu\/article\/eu-lawmakers-tiktok-probe-alleged-censorship-over-epstein-files\/\" target=\"_blank\" rel=\"noopener\">drawn<\/a> attention in Europe, with users there reporting similar experiences. Members of the European Parliament have formally asked the European Commission, which is responsible for enforcing the Digital Services Act, to conduct an independent assessment of TikTok\u2019s compliance.<\/p><p>Limited access for independent researchers has been a persistent feature of TikTok\u2019s operations for years, and the change in ownership has not altered that reality. These challenges have been discussed in our EVC-produced <a href=\"https:\/\/zonavlivu.podbean.com\/e\/josef-slerka\/\" target=\"_blank\" rel=\"noopener\"><em>Zone of Influence<\/em><\/a> podcast with data analyst Josef \u0160lerka.<\/p><p>Taken together, the episode underscores the view that TikTok remains a questionable platform on which to entrust sensitive user data, even after changes in ownership. The opacity of the TikTok acquisition process may serve as a cautionary example, but it does not weaken the rationale for further European regulatory engagement.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Photo: Canva.com Foto: Canva.com What happened? TikTok executives have completed a deal creating a separate U.S.-based entity to control the social media platform\u2019s American operations. The newly formed TikTok USDS Joint Venture LLC is majority owned by U.S. investors and governed by a seven-member board, with ByteDance, the current China-based owner, retaining a 19.9% stake. [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":42332,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[500],"tags":[573],"class_list":["post-42330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-matus-brziak"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>TikTok After the Sale: New Structure, Familiar Risks - European Values Center for Security Policy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/europeanvalues.cz\/en\/tiktok-after-the-sale-new-structure-familiar-risks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TikTok After the Sale: New Structure, Familiar Risks - European Values Center for Security Policy\" \/>\n<meta property=\"og:description\" content=\"Photo: Canva.com Foto: Canva.com What happened? TikTok executives have completed a deal creating a separate U.S.-based entity to control the social media platform\u2019s American operations. The newly formed TikTok USDS Joint Venture LLC is majority owned by U.S. investors and governed by a seven-member board, with ByteDance, the current China-based owner, retaining a 19.9% stake. 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