TikTok US Deal What’s Happening Now?
The situation surrounding TikTok in the US remains dynamic. Several factors contribute to the ongoing uncertainty making it difficult to pinpoint the exact status of any potential deal. This article aims to provide an overview of the recent developments and what they signify for the popular video-sharing app.
Key Players and Their Roles
Several entities are central to understanding the TikTok US deal saga:
- ByteDance: The Chinese parent company of TikTok. They face pressure to address US security concerns.
- The US Government: Governmental bodies express national security concerns regarding data privacy and potential censorship.
Background & Legal Framework
CFIUS has previously reviewed ByteDance’s acquisition of Musical.ly and other transactions involving ByteDance.
Under the law CFIUS can require divestitures or mitigation if it finds national security risks in foreign control of U.S. operations. For TikTok any deal must address those concerns.
PAFACA The Sale-or-Ban Law
In April 2024 the U.S. Congress passed the Protecting Americans from Foreign Adversary Controlled Applications Act PAFACA. Under this law apps controlled by a foreign adversary explicitly ByteDance and TikTok must divest or else be banned.
The law set a deadline initially January 19, 2025 for compliance which would involve ByteDance divesting or losing control over U.S. operations.
Supreme Court TikTok v. Garland Decision
TikTok and ByteDance challenged PAFACA arguing among other things that it violated First Amendment rights due process etc. The Supreme Court unanimously upheld the law in early 2025.
However the law’s enforcement has been delayed several times via executive orders while a deal is negotiated.
Recent Negotiations & Key Issues
Framework Deal
As of mid-September 2025 the U.S. and China reportedly reached a framework agreement for TikTok to restructure its U.S. operations. Under this deal ByteDance would retain less than 20% ownership with the rest held by U.S. or American-led investors. Oracle Silver Lake and others are named. Oracle would also manage data security and could be involved in licensing oversight of the recommendation algorithm. Financial Times
Algorithm Licensing Control Disputes
A major sticking point in negotiations is whether ByteDance will give up control of the content recommendation algorithm completely or only license it. U.S. lawmakers want operational control for security reasons while ByteDance seems to favor licensing to retain some degree of influence.
Deadlines & Extensions
The January 2025 deadline under PAFACA was not met. The U.S. has repeatedly delayed enforcement via executive orders to allow negotiations to proceed. The latest extension pushes enforcement to December 16, 2025.
Data Security & U.S. Oversight
The proposed deal would require all U.S. user data to be stored in U.S. infrastructure managed by a U.S. based entity. Oracle is expected to play a central role in security management.
The recommendation algorithm must be overseen retrained or rebuilt in a way that prevents Chinese government or ByteDance control over U.S. user recommendations.
Challenges & Uncertainties
Will the deal fully satisfy the legal requirements in PAFACA? Some lawmakers argue that licensing of the algorithm may still leave too much ByteDance influence.
China’s acceptance the Chinese government has reportedly agreed to license the algorithm and allow divestment under these terms, but details are still being finalized.
Oversight & enforcement Even if a deal is signed ensuring that the new entity abides by rules data separation algorithm transparency board structure etc. will be complex and likely contentious.
Challenges and Roadblocks
Several obstacles have hindered a swift resolution:
- Data Security Concerns: Ensuring US user data remains secure and protected from potential access by the Chinese government is paramount.
- Technological Complexity: Structuring a deal that satisfies both US regulatory requirements and ByteDance’s business interests involves intricate technological and legal considerations.
- Geopolitical Tensions: Broader US-China relations add another layer of complexity influencing the negotiations and potential outcomes.
Potential Outcomes and Future Scenarios
The future of TikTok in the US remains uncertain with several possible scenarios:
- Continued Operation with Oversight: TikTok could continue operating under strict monitoring and compliance requirements.
- Divestiture: ByteDance could be compelled to sell TikTok’s US operations to an American company.
