TikTok's New American Owners Face Growing Pains

Just over a week into TikTok's American ownership transition, users are experiencing something they didn't expect: chaos. The app that once delivered seamless scrolling has become a source of frustration, sparking debates about everything from censorship to corporate competence.

The Handover That Wasn't Smooth

Following government pressure, ByteDance sold TikTok to a consortium of American investors including Oracle, MGX (an Abu Dhabi-based firm), and private equity giant Silver Lake. The deal was supposed to resolve national security concerns while keeping America's favorite short-form video platform operational.

Instead, users immediately encountered a cascade of technical problems. Videos about events in Minneapolis reportedly received zero views. Direct messages containing certain words like "Epstein" allegedly failed to send. Upload failures became commonplace, leading many to conclude they were being deliberately silenced.

But according to David Pierce, editor-at-large at The Verge, the explanation might be more mundane than malicious. Oracle, TikTok's new data center provider, experienced a significant outage at its Virginia facility due to what the company called a "weather-related issue."

The Censorship Question

The timing couldn't have been worse for building user trust. Social media platforms have long battled perceptions of bias and censorship, with users across the political spectrum convinced their content is being suppressed. TikTok's technical difficulties landed squarely in this sensitive territory.

Pierce draws a telling comparison to Elon Musk's acquisition of Twitter. When Musk took over, he openly announced his content moderation changes and implemented them visibly. "The likelihood that this new group would have taken over TikTok and immediately smash a big red 'censorship' button is pretty unlikely," Pierce notes.

Yet the perception persists, fueled by years of distrust between users and platform owners. The difference between technical incompetence and intentional suppression can be difficult to discern when your video won't upload or your message won't send.

Data Collection Gets More Aggressive

Beyond technical glitches, TikTok's updated terms of service have raised privacy concerns. The new ownership structure will collect more precise location data and expanded AI-related information from users who opt in.

While some of these data collection practices existed under ByteDance, the change in ownership means this information now flows to different hands – American corporate interests with their own potential motivations and vulnerabilities.

The Algorithm Mystery

Perhaps most intriguingly, the deal requires "meaningful separation" of TikTok's recommendation algorithm from Chinese control. The new owners must "retrain, test, and update" the system that has made TikTok uniquely addictive compared to competitors like Instagram Reels or YouTube Shorts.

This algorithmic overhaul represents uncharted territory. No other platform has successfully replicated TikTok's ability to surface content that keeps users endlessly scrolling. Any significant changes could fundamentally alter the user experience that made TikTok a cultural phenomenon.

Different Stakeholders, Different Concerns

For users, the primary worry centers on whether their favorite app will continue working as expected. Content creators fear losing audience reach and engagement that drives their livelihoods. Privacy advocates question whether American corporate data collection is meaningfully different from Chinese government access.

Meanwhile, the new owners face the challenge of maintaining TikTok's appeal while satisfying regulatory requirements and potentially different business objectives. Oracle's enterprise software background differs vastly from ByteDance's consumer internet expertise.

Regulators who pushed for this ownership change now watch to see whether their intervention achieved its intended security benefits without destroying what made TikTok valuable in the first place.