Recently, TikTok has taken significant steps to enhance user data privacy and security in the United States. The company announced the creation of TikTok USDS Joint Venture LLC, which marks a pivotal change in its operations.
TikTok’s New Approach to User Location Data
The new joint venture signifies a shift in how TikTok collects and processes user location data. According to their latest privacy policy, TikTok has begun to gather precise user location information.
How TikTok Collects User Data
Previously, TikTok used users’ SIM cards and IP addresses to estimate their location, but it did not collect GPS data directly from American users. This restriction has ended, allowing for more accurate identification of user locations.
Additionally, the joint venture expands TikTok’s data collection to include interactions with its artificial intelligence-generated content.
Key Stakeholders in TikTok USDS Joint Venture LLC
- Oracle: A leading cloud computing provider and major investor in the joint venture, Oracle is set to supervise the security of TikTok’s recommendation algorithm.
- Minority Stake: ByteDance, TikTok’s parent company, retains a stake of nearly 20% in this new venture.
- Other Investors: The joint venture includes Silver Lake, a U.S. tech investment firm, and MGX, a state-owned investment fund from Abu Dhabi.
Concerns Over Data Privacy
There have been ongoing concerns regarding whether the Chinese government could access American user data. In response to these fears, the U.S. Congress passed a law in 2024 mandating that TikTok sell its U.S. operations by January 2025 if it did not comply with data security requirements.
This legislative move came after years of negotiations between the U.S. government and TikTok over national security issues, particularly during the Trump administration.
The Way Forward for TikTok
With the establishment of the TikTok USDS Joint Venture, the focus will be on safeguarding U.S. user data through rigorous cybersecurity measures. Oracle’s involvement indicates a clear directive to ensure that all collected data remains protected within the U.S. cloud environment.
This new framework aims to enhance user confidence in the app while complying with regulatory standards on data privacy and security.
