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TikTok launches new entity to avert US ban

Nkhensani Nkhwashu
By Nkhensani Nkhwashu, ITWeb portals journalist.
Johannesburg, 27 Jan 2026
TikTok has announced a US-focused joint venture aimed at addressing national security concerns and preventing a potential ban.
TikTok has announced a US-focused joint venture aimed at addressing national security concerns and preventing a potential ban.

In a bid to avoid a ban in the US, TikTok has formally launched TikTok USDS Joint Venture, a majority American-owned entity designed to ring-fence the platform’s US operations, and recommendation algorithm, following an executive order by US president, Donald Trump, in September 2025.

TikTok USDS Joint Venture will safeguard the US content ecosystem through robust trust and safety and content moderation while ensuring continuous accountability through transparency reporting and third-party certifications, the company stated.

The company said the new structure allows TikTok to continue operating in the US, where it serves more than 200 million users and 7.5 million businesses, while addressing long-standing national concerns related to data access, content moderation and algorithm governance.

The US was meant to pull the plug on TikTok in the country on 17 September 2025, but the White House pressed pause. Trump has repeatedly delayed enforcement of the ban while the administration explores options for a US buyer.

Trump took to Truth Social to express his views regarding the new venture. “I am 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,” he said.

He also thanked US VP, JD Vance, and the rest of his administration who helped bring the deal to a conclusion.

“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 he didn't.”

In a statement, TikTok highlighted that under the new framework, all US user data will be stored and protected within Oracle’s US-based cloud infrastructure. The video sharing app added that the joint venture will operate a comprehensive data privacy and cyber security programme that is audited and certified by third-party experts, aligned with major standards including NIST CSF and 800-53, ISO 27001 and CISA security requirements for restricted transactions.

The content recommendation algorithm for US users will be retrained, tested and updated using US user data, and secured within Oracle’s US cloud environment. Oracle will also act as the venture’s trusted security partner, supporting ongoing source-code review and software assurance for US apps.

TikTok USDS Joint Venture will hold decision-making authority over trust and safety policies and content moderation in the US, while committing to transparency reporting and accountability through third-party certifications.

Despite the structural separation, TikTok said interoperability will allow US users to retain a global TikTok experience, enabling American creators to reach international audiences and businesses to operate at scale. TikTok’s global US entities will continue managing product interoperability and certain commercial activities, including advertising, marketing and e-commerce.

The safeguards implemented by the joint venture will also apply to CapCut, Lemon8 and other TikTok-owned apps and websites operating in the US.

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