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By Sam Stevenson
Associate News Editor
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TikTok has introduced a new set of U.S. Terms of Service, just as the United States and China have finalized a deal reshaping ownership of the platform for American users.
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Why It Matters
The legal and structural changes—effective January 22, 2026—come alongside a sweeping agreement requiring TikTok’s U.S. operations to shift to American-controlled ownership, ending years of uncertainty over the app’s future.
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What To Know
Congress passed, and the Supreme Court upheld, a 2024 law requiring TikTok’s divestment from ByteDance, or a U.S. ban, making corporate control and algorithm access central national security concerns. This deal, and the updated terms, aim to address these issues.
The social media video platform has now finalized agreements with major backers—including Oracle, Silver Lake, and Emirati firm MGX—to establish the new TikTok U.S. joint venture.
Oracle, Silver Lake and MGX each hold a 15 percent stake as the joint venture’s managing investors, joined by additional backing from the investment firm of Michael Dell, founder of Dell Technologies. ByteDance keeps a 19.9 percent share in the new U.S. entity.
TikTok’s updated Terms of Service make clear that American users are now contracting with TikTok USDS Joint Venture LLC, the newly created and majority‑U.S.-owned company that will operate the platform domestically.
The terms, last updated on Thursday, govern access to TikTok’s apps, websites, features, software, and related services.
Users form a contract with TikTok USDS when they accept the terms or continue using the platform.
Updated terms also reaffirm key rules, including age restrictions: users under 13 cannot access the full version of TikTok and are instead directed to a limited “Under 13 Experience.”
The document also lists additional policies—such as the Privacy Policy, Community Guidelines, Music Terms, and Intellectual Property Policy—that may apply depending on how a user interacts with the platform.
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What Users Should Expect Next
For everyday users, the most immediate change is the updated contractual relationship with TikTok USDS.
The platform remains available in the United States, and its rules regarding content, intellectual property, and the types of services covered are laid out in the newly updated Terms of Service.
Users retain ownership of their content, including AI inputs and outputs, while granting TikTok a worldwide, irrevocable, royalty-free, assignable, and sublicensable license to use, adapt, and distribute content to operate and improve the platform, including developing machine learning models, subject to settings.
Generative AI rules: Output is provided "as is," users are responsible for inputs and outputs, and the terms prohibit representing AI output as human-generated or removing watermarks or authenticity markers.
TikTok explains: "When you create, import, upload, publish, or generate content to the Platform, it remains yours, but you grant us a license to use Your Content to operate, develop, improve, and provide the Platform, and to develop new technologies. If you choose to make Your Content available to others, we can show it to other users and those other users may be able to use Your Content too. We retain all our respective rights in and to the Platform and our technologies."
Advertising and personalization: TikTok may customize content and ads based on user activity and third-party information, and may use names and profile images in connection with interactions with sponsored content without compensation absent separate agreements.
TikTok says: "You agree that we can customize ads and other sponsored content from creators, advertisers, and partners, that you see on and off the Platform based on, among other points, information we receive from third parties."
Moderation and enforcement: TikTok can remove or restrict content and suspend or ban accounts to enforce the terms, guidelines, legal requirements, or address security issues, with an appeals process available on the platform.
The company says: "We operate the Platform for you and others, and we may work with our affiliates, service providers, and business partners. We customize parts of your experience on the Platform to make it more relevant and enjoyable for you. We may take steps to identify and take action against content that may violate our Terms, Community Guidelines, and other conditions or policies, to protect you and others in our community."
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The U.S.–China Framework Deal Behind the Change
The shift in TikTok’s U.S. contracting party reflects a major political breakthrough.
According to the Associated Press, the U.S. and China reached a framework agreement in September 2025 to resolve control over TikTok after years of negotiations. U.S. Treasury Secretary Scott Bessent announced that both governments agreed on "basic framework consensus" aimed at transitioning ownership from ByteDance to a U.S.‑controlled structure.
The goal, officials said, was to "switch to U.S. ownership from China’s ByteDance" with commercial terms already settled between the parties.
It emerged from high‑level trade talks in Madrid and followed multiple rounds of negotiation since the beginning of the U.S.–China tariff conflict.
What People Are Saying
President Donald Trump said: "It will now be owned by a group of Great American Patriots and Investors. I only hope that long into the future I will be remembered by those who use and love TikTok."
Chinese Foreign Ministry spokesperson Guo Jiakun said: "China’s position on TikTok has been consistent and clear."
Anupam Chander, a law and technology professor at Georgetown University, told AP: "Who controls TikTok in the U.S. has a lot of sway over what Americans see on the app."
A TikTok statement said: "TikTok USDS Joint Venture's mandate is to secure U.S. user data, apps and the algorithm through comprehensive data privacy and cybersecurity measures. It will safeguard the U.S. content ecosystem through robust trust and safety policies and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications.”
It added: "TikTok USDS Joint Venture LLC is dedicated to the safety and security of millions of Americans who create, discover, and connect with what they love on the apps we operate. The Joint Venture has been established in compliance with the Executive Order signed by President Trump on September 25, 2025.
"Our foundation is a comprehensive data privacy and cybersecurity program we operate under defined safeguards to protect national security and secure U.S. user data, apps and the algorithm. We safeguard the U.S. content ecosystem, holding decision-making authority for trust and safety policies and moderation.
"USDS Joint Venture helps ensure Americans can continue to express their creativity, discover new hobbies and interests, and build thriving communities and businesses on a global scale."
What Happens Next
Implementation questions remain over how the U.S. entity will retrain and operate the content recommendation system, given legal limits on cooperation with ByteDance, which AP reports will license the algorithm to the venture.
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