TikTok Deal Update: Algorithm Use, U.S. Ownership, and Data Security

The future of TikTok in the United States has been a hot topic in recent months. With the Trump administration considering a ban on the popular social media app, much of the debate has centered on whether the platform could remain under Chinese ownership while ensuring American user data is safe. A key part of this discussion has been TikTok’s algorithm—the special technology that decides which videos users see and makes the app so addictive.

TikTok’s Algorithm and China’s Agreement

One of the main questions in the TikTok saga has been whether the app could continue to use its Chinese-developed algorithm after being separated from its parent company, ByteDance. Wang Jingtao, deputy director of China’s Central Cyberspace Affairs Commission, told reporters in Madrid that both sides have agreed on allowing TikTok to continue using the algorithm. This was a major point of disagreement in the negotiations.

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In addition, the two countries agreed to assign a partner company to handle U.S. user data and ensure content security. However, it is still not clear exactly how this arrangement will work in practice.

Uncertainty About the Deal

Many details about the deal are still unknown. It is not yet clear which companies will be involved, and whether the U.S. will take a stake in TikTok. Li Chenggang, China’s international trade representative, said that both sides have reached a “basic framework consensus” to solve TikTok issues cooperatively. This includes reducing investment barriers and promoting economic and trade cooperation between the two nations. The deadline to finalize details has now been extended to December 16.

American Leadership Involvement

U.S. Treasury Secretary Scott Bessent said in a press conference that Presidents Donald Trump and Xi Jinping are expected to discuss the deal on a Friday call. The goal of the deal would be to move TikTok to American ownership. Bessent added that the commercial terms of the deal have already been agreed upon but did not provide specific details.

Oracle Corporation has been mentioned as a possible buyer of TikTok. However, the company has not made any official comments about the potential deal.

Focus on Data Security

During talks in Madrid, U.S. Trade Representative Jamieson Greer emphasized that the negotiations were focused on ensuring a fair deal for China while fully respecting U.S. national security concerns. One important part of the deal is giving a partner company responsibility for handling U.S. user data and content security.

At a Supreme Court hearing earlier this year, TikTok’s lawyers explained how difficult it would be to comply with U.S. laws while selling the app, especially because Chinese laws restrict the sale of the proprietary algorithm.

U.S. officials have warned that China could manipulate TikTok’s algorithm to influence content in ways that are hard to detect. However, TikTok has stated that the U.S. government has never provided proof that China has tried to manipulate content on its American platform.

Legal Requirements and U.S. Congressional Concerns

The U.S. House Select Committee on China has stressed that any deal must comply with laws requiring TikTok to be divested from Chinese ownership. A spokesperson for the committee said that a shared algorithm with ByteDance would violate these laws.

Rep. Raja Krishnamoorthi, the committee’s ranking Democrat, said he wants transparency about the app’s ownership structure. He added that concerns about the Chinese Communist Party’s access to American user data are central to the debate. According to Krishnamoorthi, TikTok requires user data to decide what content to show users, and any deal should protect the platform from Chinese interference.

Trump’s Deadline Extensions

President Trump has repeatedly extended the deadline for TikTok to avoid a U.S. ban, even though there is no clear legal basis for these extensions. The latest extension came a day before the previous deadline. These extensions give the U.S. government more time to negotiate a deal that would place TikTok under American ownership.

It is unclear how many times the ban can be extended, but so far there have been no legal challenges. Interestingly, President Trump is an active TikTok user, with over 15 million followers. He has credited the app with helping him reach younger voters and has expressed a “warm spot” for the platform.

Current Situation for TikTok Users

For now, TikTok continues to operate normally for its 170 million users in the United States. Major technology companies, including Apple, Google, and Oracle, have agreed to keep offering and supporting the app. They did so after assurances from the U.S. Justice Department that they would not face fines under the law used to threaten a TikTok ban.

American Public Opinion

Public opinion on TikTok in the U.S. is divided. A recent survey by the Pew Research Center found that only about one-third of Americans support a TikTok ban, which is a decline from 50% support in March 2023. Another one-third opposed a ban, while the remaining third were unsure. Among those in favor of a ban, 80% cited concerns over user data security as a major reason.

The TikTok saga highlights the challenges of balancing national security with global business interests. While China has agreed that a divested TikTok could continue using its algorithm, the specifics of how that will work remain unclear. The deal also requires a trustworthy partner to manage U.S. user data and ensure content security. With the deadline extended to December 16, the next few months will be crucial in determining the future of TikTok in the United States.

As negotiations continue, both countries are trying to find a solution that satisfies national security concerns while allowing millions of American users to continue enjoying the platform. The situation remains fluid, and Americans will be closely watching to see whether TikTok can successfully transition to American ownership while maintaining its unique algorithm.