TikTok has finalized a deal to create a new US-based joint venture, a move designed to prevent a possible ban in the United States, according to people familiar with the matter.
The agreement comes amid long-running concerns by US lawmakers over data security and foreign ownership of the popular short-video platform.
Key Details of the Agreement
Under the proposed arrangement, TikTok’s US operations will be placed under a separate joint venture involving American investors. The structure aims to ensure greater local oversight and compliance with US regulations.
However, full details of ownership and governance have not yet been publicly disclosed.
Why TikTok Faced a Ban Threat
US officials have repeatedly warned that TikTok’s Chinese parent company, ByteDance, could allow sensitive user data to be accessed by foreign authorities.
As a result, lawmakers pushed for either a forced sale of TikTok’s US operations or a complete ban on the app.
How the Deal Addresses US Concerns
Sources say the new joint venture would store US user data domestically and limit ByteDance’s operational control. American board members are also expected to play a key role in oversight.
Meanwhile, TikTok has maintained that it has never shared user data with foreign governments.
Reaction from Washington
US officials are reviewing the deal to determine whether it meets national security requirements. Approval from regulators remains a critical step before the agreement can take effect.
Additionally, lawmakers may seek further guarantees before backing away from the ban proposal.
Impact on Users and Creators
If approved, the deal would allow TikTok to continue operating in the US without disruption, protecting millions of creators and businesses that rely on the platform for income and marketing.
In contrast, a ban could have removed the app from US app stores nationwide.
What Comes Next
Regulatory scrutiny is expected to intensify in the coming weeks as authorities examine the joint venture’s structure and safeguards.
Ultimately, the decision will shape TikTok’s future in its largest international market.
Conclusion
TikTok’s move to secure a US joint venture marks a major step toward avoiding a nationwide ban. Still, the final outcome depends on regulatory approval and political consensus.
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