TikTok reaches deal for new US joint venture to avoid American ban – The Economic Times
TikTok’s US Privacy Update: Why Location Data Is Back in the Spotlight
TikTok is once again at the center of a data privacy conversation—this time in the United States. Following the completion of its new US joint venture, the short-video giant has quietly updated its privacy policy to allow the collection of precise location data from American users, depending on their settings.
With nearly 200 million users in the US, this change is significant and naturally raises questions about privacy, control, and national security.
Let’s break it down in plain language.
What Exactly Has Changed in TikTok’s Privacy Policy?
Previously, TikTok’s US privacy policy only allowed the collection of approximate location data, typically inferred from IP addresses or SIM card information.
Now, under the updated policy, the platform says it may collect precise location data—such as GPS information—if users explicitly allow it.
Key point for users:
Precise location sharing is expected to be optional and turned off by default. Users will likely see a pop-up asking for permission before any GPS-level data is collected.
Is TikTok Already Tracking Precise Locations in the US?
No—at least not yet.
According to TikTok’s disclosures:
- Precise location tracking has not been enabled in the US so far
- Users will be able to turn off location access at any time through device settings
- The feature mirrors what TikTok already does in the UK and Europe, where it powers tools like the “Nearby Feed” for local events and businesses
However, TikTok has not confirmed when this update will roll out to American users.
Why Is This Happening Now?
This policy update comes immediately after investors finalized a deal with TikTok’s Chinese parent company, ByteDance, to form a new American entity called TikTok USDS Joint Venture LLC.
The deal was shaped by years of political pressure and legal battles between Washington and Beijing over data security concerns.
Under US law passed in 2024, TikTok faced a nationwide ban unless it sold its American operations. That deadline was repeatedly delayed until the joint venture was finalized this week.
Who Controls TikTok’s US Data Now?
The new joint venture includes:
- Oracle (cloud infrastructure and data security oversight)
- Silver Lake (US-based tech investment firm)
- MGX, an Abu Dhabi state-owned investment fund
ByteDance retains a minority stake just under 20%.
Oracle will also oversee the retraining and securing of TikTok’s recommendation algorithm, which will now operate entirely within Oracle’s US-based cloud environment.
What About TikTok’s AI Data Collection?
Another notable update: the new venture expands what TikTok can collect about user interactions with its AI tools.
This includes:
- Prompts and questions users submit
- When and where AI-generated content is created
- How users interact with AI-powered features
TikTok says all such data will be handled in accordance with applicable US law.
Why Are US Lawmakers Still Concerned?
Despite the deal, skepticism remains.
Republican Representative John Moolenaar, who chairs the House Select Committee on China, publicly questioned whether ByteDance could still influence TikTok’s algorithm and whether American user data is truly secure.
These concerns suggest ongoing congressional oversight—even after the deal’s completion.
What Should TikTok Users Do Right Now?
If you’re a TikTok user in the US:
- Keep your app updated and review location permissions
- Watch for opt-in pop-ups requesting precise location access
- Remember: you’re in control, and location services can be turned off anytime
Transparency and user choice will be critical as this policy rolls out.
The Bigger Picture
TikTok’s privacy update reflects a broader reality: social media platforms are becoming more localized, regulated, and politically complex—especially when AI, data security, and geopolitics collide.
For users, staying informed is the best defense.
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