TikTok has finalized a deal to comply with a law that should have banned the platform a year ago, but uncertainty lingers as Congress questions the ownership and influence over the app’s algorithm.
The new TikTok USDS Joint Venture LLC, majority-owned by Oracle and investment firms, will oversee US data storage and content algorithm updates. However, lawmakers remain unclear on whether the deal effectively severs ties with ByteDance, the Chinese parent company.
House Select Committee on China Chair John Moolenaar raised concerns about China’s potential influence over the algorithm and data security. Meanwhile, Select Committee Ranking Member Ro Khanna emphasized the deal’s impact on creators’ livelihoods, pledging to safeguard the growing creator economy while ensuring data security.
Sen. Ed Markey called for transparency and oversight to address lingering uncertainties surrounding the deal, signaling a need to balance economic opportunities with data protection.
Source: The Verge