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U.S. lawmakers are calling for closer congressional scrutiny of a new deal involving TikTok and its Chinese parent company ByteDance, raising fresh concerns about national security, data privacy, and potential Chinese influence over the popular social media platform. The agreement, finalized Thursday, would establish a new entity, TikTok USDS Joint Venture LLC, structured to be majority American-owned in an effort to avoid a U.S. ban on TikTok.
Representative Jack Moolenaar, the Republican chair of the House Select Committee on China, said Friday that Congress must closely oversee the deal. He emphasized worries that China could use TikTok to influence American society, questioning whether the new arrangement truly prevents Chinese control over TikTok’s algorithm and protects U.S. user data. According to Moolenaar, assurances on algorithm independence and data security are critical before the deal can be considered sufficient.
Democratic Senator Ed Markey echoed those concerns, criticizing the lack of transparency from the White House regarding the agreement’s details. Markey argued that it remains unclear whether TikTok’s algorithm is fully insulated from Chinese influence, warning that Congress has a responsibility to investigate and ensure national security is not compromised while allowing TikTok to continue operating in the U.S.
TikTok, which has more than 200 million American users, said the joint venture would secure U.S. user data, apps, and algorithms through enhanced cybersecurity and data privacy measures, though ByteDance disclosed limited specifics about the divestiture. Under the agreement, American and global investors would hold 80.1% of the venture, while ByteDance would retain a 19.9% stake. Major investors include Oracle, Silver Lake, and Abu Dhabi-based MGX, each holding 15%, along with firms such as Dell Family Office, Alpha Wave Partners, and NJJ Capital.
The deal follows years of regulatory battles that began in 2020, when President Donald Trump first attempted to ban TikTok over security concerns. A 2024 law requiring ByteDance to sell its U.S. assets or face a ban was upheld by the Supreme Court, though Trump later said the current deal meets divestiture requirements. Despite this, uncertainty remains among lawmakers and content creators, signaling that TikTok’s future in the U.S. is still under intense political and regulatory scrutiny.
