TikTok’s newly formed US joint venture has revised its privacy policy to allow the collection of precise location data from American users, a change disclosed days after the joint venture was finalized this week following years of pressure from Washington and narrowly avoiding a nationwide ban.
The updated privacy policy, published by TikTok USDS Joint Venture LLC, states that the company may collect “precise location data, depending on user settings,” marking a departure from earlier policies that limited data collection in the United States to approximate location information derived from IP addresses and mobile network signals. The policy change was also reported by the BBC, which said TikTok did not immediately respond to questions after it revised its privacy policy.
The change comes as TikTok completes one of the most consequential restructurings of a major technology platform in the United States in recent years. The deal places TikTok’s US operations under majority American ownership after lawmakers threatened to ban the app unless its Chinese parent company relinquished control.
A Deal to Avert a Ban
The joint venture was finalized after months of negotiations involving TikTok, its investors, and US officials. Under the agreement, TikTok’s American operations are transferred into a new entity controlled by US-based investors, including Oracle, Silver Lake, and MGX, an Abu Dhabi state-backed investment fund.
ByteDance retains a minority stake just under 20 percent, a threshold set by US legislation passed in 2024 requiring the platform to divest control of its US business or be removed from app stores nationwide. Enforcement of the law had been repeatedly delayed, as negotiations continued behind closed doors.
The restructuring represents what analysts have described as a significant shift in platform governance. The TikTok US deal restructuring effectively places core infrastructure and operational oversight within American jurisdiction.
Location Data Collection Expanded
According to the revised privacy policy, TikTok USDS may now collect GPS-level location information if users opt in through their device settings. The company said location services would remain optional and could be turned off at any time.
Previously, TikTok collected location data based on IP addresses or SIM cards, which can indicate a user’s approximate city or region. A 2024 version of TikTok’s US privacy policy stated that precise GPS coordinates were not collected from American users running the most recent version of the app.
TikTok already collects precise location data from users in the UK and Europe, where it has rolled out features such as “Nearby Feed,” which highlights local events and businesses.
Expanded Collection of AI Interaction Data
The updated policy also expands TikTok’s permissions to gather information related to users’ interactions with its artificial intelligence tools. This includes prompts and questions submitted by users, as well as metadata describing when, where, and how AI-generated content is created.
TikTok has steadily expanded its use of artificial intelligence tools across its platform, including features designed to assist with video editing, content creation, and recommendation optimization. Analysts have linked these developments to broader debates around data governance and AI systems, including issues discussed in Eastern Herald’s coverage of artificial intelligence tools.
Oracle and Algorithm Oversight
As part of the agreement, Oracle will oversee the storage of American user data and the retraining of TikTok’s recommendation system, which determines what content appears in users’ feeds. The algorithm will be hosted in Oracle’s US-based cloud infrastructure, according to disclosures cited by the Washington Post.
The recommendation system has long been a focal point of US lawmakers’ concerns, with officials arguing that control over content distribution poses potential national security risks. TikTok has said the new structure ensures compliance with US cybersecurity standards and prevents unauthorized access to American user data.
Congressional Scrutiny Continues
Despite the deal’s completion, lawmakers from both parties have signaled that oversight will continue.
John Moolenaar, the Republican chair of the House Select Committee on China, said lawmakers would examine whether the arrangement adequately protects American users’ data and insulates the algorithm from foreign influence.
Some observers have connected the TikTok restructuring to government control over platforms, arguing that the forced reorganization highlights growing tensions between national security policy and principles of free expression.
A Broader Technology Standoff
The TikTok dispute is the culmination of a standoff between Washington and Beijing over technology, data, and market access.
The issue resurfaced with renewed urgency in 2024, when Congress passed legislation mandating divestment or a ban. Lawmakers cited national security concerns, though TikTok has repeatedly denied providing US user data to the Chinese government.
What Changes for Users
For most American users, the immediate effects of the joint venture may be limited to updated disclosures and consent prompts. TikTok has said precise location sharing will be disabled by default and require explicit user permission.
Privacy experts note that while policy changes often attract limited attention from users, enforcement and regulatory oversight will play a critical role in determining how the platform’s expanded data collection authority is applied.
An Unsettled Resolution
While the new joint venture resolves TikTok’s immediate legal threat in the United States, it leaves broader questions unanswered about how governments regulate global platforms that operate across competing political systems.
For now, TikTok continues to operate in the United States under a new corporate structure, expanded data collection authority, and heightened scrutiny from policymakers.
