After TikTok 's ownership change in the US last week, some users are worried about what will become of the platform.
Shortly after the agreement on TikTok, the platform experienced significant problems that, according to the company, were the result of a technical issue resulting from a power outage at a "US data center partner." Users were unable to upload new videos and views were inaccurate, with few answers or explanations.
As of last weekend, TikTok US is now TikTok USDS Joint Venture LLC. Under the new structure, about 80% of TikTok’s US entity is owned by non-Chinese investors, with ByteDance retaining only 19.9%. The newly formed entity, “TikTok USDS Joint Venture LLC“, licenses TikTok’s recommendation algorithm from ByteDance and is responsible for content management, data protection, algorithm security, and software controls.
See also: Learn all about TikTok's new owners in the US
The investor management team consists of Oracle, private equity firm Silver Lake and investment firm MGX. Each holds a 15% stake, for a total of 45% of the US business.
TikTok USA: Outage and user concerns
The recent major outage has raised suspicions among users, particularly regarding Oracle's involvement, which is often cited as a concern due to co-founder Larry Ellison to Donald Trump. The timing of the outage, which coincided with new ownership, has led to speculation.
How algorithm — and what kind of content can be 'shadowbanned' — is a never-ending debate for content creators who rely on these opaque systems.
TikTok is seen by some as a powerful tool for serious conversation or to highlight stories that might be lost on other platforms. The app has also become a political issue for U.S. lawmakers, who have supported legislation to sell or ban the app. TikTok's future has been uncertain for years, and creators have already been considering their options if the app were to stop operating in the U.S.
See also: TikTok: New age verification technology in Europe
For some, the Oracle-related outage was the last straw.
Actress and comedian Meg Stalter expressed her concerns on Instagram, stating: 'Hi, today I will be taking down my videos and deleting my TikTok page. [TikTok] is under new ownership and there is complete censorship and monitoring.'
Other creators are also reporting that they may be abandoning the app, with some migrating to an app called UpScrolled, which claims to be politically 'neutral'.
What will happen to the TikTok algorithm?
It remains unclear what will happen to TikTok's algorithm. The US consortium says it will 'retrain, test and update' the algorithm, but does not specify when or how this will happen.
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TikTok has had a major impact on the creator industry and social media, contributing to the shift towards slot-machine recommendation algorithms and an environment where anyone could go viral. The platform has reshaped the music industry, influenced the purchasing habits of millions of users, and become a primary source of information. So it makes sense that users are worried about the changes that may occur in the near future.
