The multi-billion-dollar deal that placed the U.S. version of the popular social media app TikTok in the hands of majority-American investors last Thursday is raising alarm among lawmakers, who are calling for an investigation into remaining Chinese influence.
TikTok, a short-video platform used primarily by pre-teens through young adults, has fallen under the oversight of TikTok USDS Joint Venture LLC, which will manage TikTok’s U.S. user data and most of its operations.
That move was required under a law passed by Congress in 2024, which cited national security risks posed by the platform’s Chinese owner, ByteDance.
Lead investors include Egon Durban, co-CEO of Silver Lake, Kenneth Glueck, executive vice president of Oracle, and David Scott, chief strategy and safety officer at MGX. Silver Lake, Oracle, and MGX will each own 15% shares of the company, and ByteDance will retain 19.9% ownership of TikTok, according to the joint venture.
While some details have been shared – including that user data will be stored on Oracle’s cloud and that the platform will abide by U.S. federal cybersecurity standards – many remain unclear.
One leading question posed by some lawmakers is whether China will still be able to influence algorithms, which was a leading concern driving the TikTok ban passed by Congress in 2024.
“Despite my repeated requests for information, the White House has provided virtually no details about this agreement, including whether TikTok’s algorithm is truly free of Chinese influence,” Sen. Ed Markey, D-N.Y., said in a statement. “This lack of transparency reeks. Congress has a responsibility to investigate this deal, demand transparency, and ensure that any arrangement truly protects national security while keeping TikTok online.”
That concern has resonated with Republicans, who have pointed to concerns about data security and limited information on the deal.
“The Chinese Communist Party cannot be allowed to weaponize an app to divide and weaken our country,” Rep. John Moolenaar, R-Mich., chair of the House Select Committee on China, said in a statement.
“Does this deal ensure China does not have influence over the algorithm? Can the parties involved assure Americans their data is secure? Those are questions that need to be answered as the Select Committee does oversight of this deal,” Moolenaar added.
What answers to Moolennar’s questions the joint venture did provide is that it will “retrain, test, and update the content recommendation algorithm on U.S. user data.”
According to a Truth Social post made by President Donald Trump, Chinese President Xi Jinping approved the deal; though Trump did not provide details on that approval.
“I would also like to thank President Xi, of China, for working with us and, ultimately, approving the Deal. He could have gone the other way, but didn’t, and is appreciated for his decision,” Trump wrote.
Trump also took credit for the deal, adding that he was “so happy to have helped in saving TikTok! It will now be owned by a group of Great American Patriots and Investors, the Biggest in the World, and will be an important Voice … I only hope that long into the future I will be remembered by those who use and love TikTok.”
Over the past year, Trump signed multiple executive orders to extend the deadline for the sale of TikTok, as mandated by Congress. Those actions were called into question for their legality.