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TikTok's US joint venture updates privacy policy
The newly formed U.S. entity overseeing TikTok has revised its privacy terms to permit the collection of precise location data from its 200 million American users, marking a shift from the app's previous policy of gathering only approximate location information.
Key changes in data collection
The updated policy, published after investors finalized a deal with TikTok's Chinese parent company ByteDance on Thursday, states the platform may now "collect precise location data, depending on your settings." Previously, TikTok limited its location tracking to approximate data derived from SIM cards or IP addresses.
The company clarified that sensitive personal information would be processed "in accordance with applicable law" and noted users retain the ability to disable location services in their device settings. However, TikTok has not yet enabled precise location sharing in the U.S., where it is expected to remain optional and disabled by default. Users would need to opt in via a pop-up notification, though no timeline for the rollout has been provided.
AI interactions and broader data permissions
The joint venture, TikTok USDS Joint Venture LLC, is also expanding its data collection scope to include user interactions with TikTok's artificial intelligence tools. This encompasses prompts submitted to AI systems, as well as metadata about when, where, and how AI-generated content is created or accessed.
TikTok already employs similar data practices in the UK and Europe for its "Nearby Feed" feature, which surfaces local events and businesses based on user location.
Investors and political backdrop
The joint venture is led by three managing investors: Oracle, the cloud computing giant; Silver Lake, a U.S. tech investment firm; and MGX, an Abu Dhabi state-owned fund with ties to former President Donald Trump's crypto venture, World Liberty Financial. Oracle, chaired by Republican megadonor Larry Ellison, has taken on significant debt to finance its AI infrastructure ambitions and will oversee the retraining of TikTok's content recommendation algorithm using U.S. user data.
The deal follows years of tensions between Washington and Beijing over TikTok's operations. In 2024, U.S. lawmakers passed legislation requiring ByteDance to divest its U.S. operations by January 2025 or face a nationwide ban. Trump, who initially pushed for the ban during his presidency, repeatedly delayed enforcement until the joint venture was finalized this week.
Security concerns persist
In a statement, the joint venture emphasized its mandate to "secure U.S. user data, apps, and the algorithm through comprehensive data privacy and cybersecurity measures." Oracle will host and secure TikTok's algorithm in its U.S. cloud environment, though ByteDance retains a minority stake of nearly 20% in the venture.
Republican Representative John Moolenaar, who chairs the House Select Committee on China, raised questions about the deal's adequacy in addressing national security risks. "Does this deal ensure China does not have influence over the algorithm? Can the parties involved assure Americans their data is secure?" he said in a statement on Friday. "Those are questions that need to be answered as the Select Committee does oversight of this deal."
Next steps
TikTok has not responded to requests for comment on the policy changes. The company's next steps, including the timeline for enabling precise location tracking in the U.S., remain unclear as regulatory scrutiny continues.
