TikTok closes deal to split US app from global business. ...

What’s Happening

Breaking it down: The app was because of be banned in the US a year ago if its Chinese owner hadn’t sold its business in America.

TikTok closes deal to split US app from global business. Heres what to know 1 hour ago Save Suranjana Tewari , Asia Business Correspondent and Lily Jamali , North America Technology Correspondent Save Watch: Does TikToks US deal threaten the companys global ambitions? (and honestly, same)

TikTok just dropped on Thursday that it has closed a deal that will allow the hugely popular short-video app to continue operating in the US.

The Details

The deal comes after a years-long tussle between Washington and Beijing that began in Trumps first term in the White House when he tried unsuccessfully to ban the app over national security concerns. The platform was because of be banned in the US in January 2025 if its Chinese owner, ByteDance, flopped to sell its US operations to American investors.

But US President Donald Trump repeatedly postponed the enforcement of legislation to take down the app. The main source of contention was the apps powerful algorithm, which dictates the content recommended to users.

Why This Matters

Now that formula has been licensed to the apps American owners and will be trained only on US data. The experts say this will certainly produce changes, but how exactly it affects the 200 million Americans on the app remains unclear. For years Washington has been pressuring TikTok to sell its US operations, citing national security concerns over its Chinese owner ByteDance.

This could have major implications for how we use technology going forward.

Key Takeaways

• Lawmakers had expressed fears that Beijing could force the firm to hand over US users data.
• Both TikTok and ByteDance have consistently shut down the claim.
• The idea of a TikTok ban, first floated his first term in 2020, gained momentum under Joe Bidens presidency.
• In 2024, Biden signed a law demanding that ByteDance sell TikTok or face a ban in the US.

The Bottom Line

In 2024, Biden signed a law demanding that ByteDance sell TikTok or face a ban in the US. A legal battle ensued between ByteDance and the US government, and in January last year the app went offline for US users for 12 to 14 hours.

What do you think about all this?