The TikTok drama in the United States has finally entered a new chapter. Forget the threat of being ‘removed from app stores’; TikTok is now operating under a joint venture entity focused on data security and innovation, a strategic move worth dissecting.
- TikTok US now operates under a new entity: TikTok USDS Joint Venture LLC.
- ByteDance holds only a 19.9% stake, with the majority owned by a consortium of investors.
- The joint venture’s primary focus is user data protection, algorithm security, content moderation, and software assurance.
- Oracle will be the key partner in providing secure cloud infrastructure for US user data.
- This new structure aims to ensure global interoperability while safeguarding US user data security.
Restructuring: Who’s at the Helm of TikTok US?
After a prolonged tug-of-war, ByteDance has finally received the green light from both the US and Chinese governments to restructure TikTok’s ownership in the United States. Instead of being solely owned, TikTok US has transformed into a joint venture named TikTok USDS Joint Venture LLC. ByteDance holds only a minority stake of 19.9% of the total ownership. The remaining 80.1% is allocated to a consortium of major investors. Big names like investment firm Silver Lake, tech giant Oracle, and Abu Dhabi’s MGX are among the main shareholders, each holding 15%. The investment firm of Michael Dell’s family is also participating, indicating broad confidence in this new business model.
More Than Just an App: Guarantees of Security and Innovation
What does all this change mean for us, the users? It’s emphasized that this joint venture will be at the forefront of comprehensive data protection, algorithm security, content moderation, and software assurance for all users in the United States. This isn’t just about TikTok; it also encompasses other app ecosystems like the video editor CapCut, Lemon8, and a portfolio of other services. The primary focus here is to build trust through strict transparency and security.
Current information highlights the composition of the joint venture’s board of directors, which consists of seven individuals. Shou Zi Chew, the familiar CEO of TikTok US, remains part of this structure. However, operational leadership has been handed over to Adam Presser, former head of operations and trust and safety affairs at TikTok, who now serves as the new CEO of this joint venture. His new role will be crucial in implementing the security mandate.
Key Mandate: Interoperability and a Fortress of Data Security
This joint venture has an ambitious dual mandate. First, to ensure seamless interoperability so that the global TikTok experience is maintained for US users. This is crucial for US creators to continue reaching global audiences and for businesses to operate on an international scale. TikTok’s global entity in the US will manage aspects such as global products and commercial activities like e-commerce, advertising, and marketing.
However, the most critical mandate is to secure US user data, applications, and algorithms. This will be achieved through various data privacy and cybersecurity measures. The joint venture is committed to protecting the US content ecosystem with robust trust and safety policies and effective content moderation, while maintaining accountability through transparency reporting and third-party certifications.
Serious Data Security Assurances:
- Data Protection: US user data will be stored and protected within Oracle’s secure cloud environment in the US. Privacy and cybersecurity programs will be audited and certified by independent experts, following global industry standards such as NIST CSF, ISO 27001, and CISA guidelines.
- Algorithm Security: Content recommendation algorithms will be retrained, tested, and updated exclusively using US user data, and secured within Oracle’s infrastructure in the US.
- Software Assurance: US applications will undergo strict software assurance protocols, including continuous source code review and validation, with Oracle as the Trusted Security Partner.
- Trust & Safety: The joint venture will have full authority in decision-making regarding trust, safety, and content moderation policies to protect the content ecosystem in the US.
