Full Breakdown
TikTok's Troubled Transition to American Ownership
2/2/2026, 1:32:15 PM
Ownership Change and Initial Fallout
On January 22, 2026, TikTok transitioned to majority American ownership through the formation of TikTok USDS Joint Venture LLC, a move aimed at addressing national security concerns surrounding its previous Chinese ownership by ByteDance. The new ownership group includes notable investors such as Oracle, led by Larry Ellison, and private equity firms Silver Lake and MGX, which collectively hold an 80.1% stake in the venture. Following this transition, TikTok faced immediate backlash, with users reporting issues related to content censorship and privacy policy changes.
User Reactions and Censorship Allegations
In the days following the ownership change, TikTok users expressed significant concern over perceived censorship, particularly regarding content critical of political figures and sensitive topics. Reports emerged of users being unable to post about controversial subjects, including the killing of U.S. citizens by federal agents and the name of convicted sex offender Jeffrey Epstein. California Governor Gavin Newsom announced an investigation into TikTok's practices, questioning whether the platform was violating state laws by suppressing anti-Trump content. This scrutiny coincided with a dramatic increase in user deletions, with uninstall rates reportedly rising nearly 150% shortly after the ownership shift.
Changes in Privacy Policy and User Trust
The updated privacy policy introduced by TikTok raised alarms among users, as it expanded the types of data collected, including precise location tracking and sensitive personal information. Many users expressed distrust towards the new ownership, particularly given Ellison's ties to the Trump administration. Keara Sullivan, a TikTok creator, articulated her disappointment, stating, “I’m very transparent about the fact that where I am in my career is largely because of TikTok,” yet felt compelled to step away due to the new policies.
Rise of Competitors Amidst Controversy
As dissatisfaction with TikTok grew, alternative platforms like UpScrolled began to gain traction. Founded by Issam Hijazi, UpScrolled markets itself as a censorship-free alternative, promising users a space devoid of political bias and data exploitation. The app surged in popularity, reportedly amassing over a million users within days of TikTok's ownership change. Users have cited UpScrolled's commitment to transparency and user privacy as key factors in their migration from TikTok.
Official Statements and Responses
TikTok attributed the technical issues and content restrictions to a "major infrastructure issue triggered by a power outage at one of our U.S. data center partner sites." The company emphasized its commitment to resolving these problems and restoring full functionality. However, critics remain skeptical, questioning whether the outages were merely a cover for more systemic issues related to content moderation and censorship.
Implications for Free Speech and Digital Discourse
The controversy surrounding TikTok's transition to American ownership highlights broader concerns regarding digital censorship and the influence of political affiliations on social media platforms. As users increasingly migrate to alternatives like UpScrolled, the future of TikTok remains uncertain, with ongoing debates about the implications for free speech and the visibility of marginalized voices, particularly in politically sensitive contexts.
Verbatim Quotes
- “I trust Oracle and Ellison about as much as I trust eating a raw burger on a hot summer day,” — Julia, TikTok User
- “It’s time to investigate,” — Gavin Newsom, Governor of California
- “We built it because people are asking for more transparency, authenticity and trust in the platforms they use every day,” — Issam Hijazi, Founder of UpScrolled
- “The challenges U.S. TikTok users may be experiencing are the result of technical issues that followed the power outage, which Oracle and TikTok are working quickly to resolve,” — Oracle Spokesperson
Conflicting Reports & Gaps
While TikTok claims that technical issues were responsible for the content restrictions, critics argue that the timing of these issues coincides too closely with the ownership change to be purely coincidental. Additionally, the extent of user deletions and the specific nature of the content being suppressed remain areas of contention, with varying reports on the scale and impact of these actions.
