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December 18.2025

2 Minutes Read

TikTok's New Deal with Oracle: What Parents Should Know About Data Privacy

Hands using smartphone with TikTok app in U.S. operations

Big Changes Ahead for TikTok: New U.S. Operations

In a major move to address long-standing security concerns, TikTok has signed a deal to transfer its U.S. operations to a consortium led by American investors, including tech powerhouse Oracle. This agreement comes amidst heightened scrutiny over data security and foreign influence, which has troubled lawmakers for years.

Why This Deal Matters for Family Privacy

With TikTok's U.S. operations now being overseen by domestic investors, parents may feel more secure about their children's data. This deal aims to ensure that user data is managed under U.S. jurisdiction, thus shifting control from its Chinese parent company, ByteDance. Anupam Chander, a law and technology professor at Georgetown University, emphasized that an American entity controlling content moderation could alleviate anxieties about foreign propaganda, though it raises concerns about potential bias in content policies.

The Bigger Picture: Regulatory Changes and Market Impact

This agreement follows significant legislative pressure from Washington, where concerns over TikTok's Chinese ownership led to a law passed in 2024 that threatened to ban the app unless significant changes were made. Experts like Jim Secreto, a former Treasury official, warn that while the deal reflects a move towards compliance with U.S. regulations, it might not sever all ties to ByteDance, which could keep some issues unresolved.

Implications for TikTok Users and Investors

For the general user base, especially for families enjoying its diverse content, the key takeaway is the increased oversight intended to protect privacy. TikTok currently has an estimated 2 billion global users, with only 10% based in the U.S. The shift in operations is likely to create a two-tier system where the U.S. version of the app may operate differently than its international counterpart, depending on who controls the content moderation rules.

Looking Forward: What’s Next for TikTok?

As the landscape of American tech and data security continues to evolve, the ramifications of this deal could serve as a template for future regulations on foreign tech firms operating in the U.S. This step could pave the way for not only TikTok but other similar platforms facing scrutiny for their ownership structures and data practices.

Join the Conversation: What Do You Think?

As parents and families adjust to the changing digital landscape, it's vital to stay informed and engaged. Discuss with fellow parents how you feel about TikTok's new direction and what it could mean for your family's online privacy. Your voice matters in shaping the future of tech regulation and data security.

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