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Silver Lake Today
By the People, for the People
TikTok's New US Venture Raises Privacy Concerns
The social media app's updated policy allows for more user data collection, sparking debate over data security and Chinese influence.
Apr. 12, 2026 at 12:22pm
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TikTok's US venture raises alarms over user data privacy and the platform's ties to China.Silver Lake TodayTikTok's new joint venture with Oracle and other US investors has sparked controversy over its updated privacy policy, which allows for the collection of precise user location data and expanded permissions around AI-generated content. The deal's political connections and ByteDance's continued minority stake have raised concerns about the venture's ability to truly secure US user data and prevent Chinese influence.
Why it matters
The updated TikTok privacy policy represents a significant shift in data collection practices, moving from 'approximate' to 'precise' location tracking for US users. This change, coupled with expanded permissions around AI tools, has fueled concerns about user privacy and the potential for content manipulation. Additionally, the venture's political ties and ByteDance's ongoing involvement have sparked questions about national security and the ability to safeguard American user data.
The details
TikTok's new privacy policy, published after a deal with parent company ByteDance, allows for the collection of precise location data from US users, a departure from the previous 'approximate' data collection. The company has not responded to inquiries about this change. While TikTok assures users that sensitive information will be handled lawfully and that location services can be disabled, the default settings suggest precise location sharing will be optional, requiring users to opt-in. This updated policy aligns with TikTok's existing data collection practices in the UK and Europe for its 'Nearby Feed' feature.
- The new privacy policy was published in April 2026, after TikTok's deal with ByteDance.
- In 2024, a law was passed mandating a US ban on TikTok if ByteDance did not sell its US operations, though the enforcement of this law was postponed.
The players
TikTok
A popular social media platform owned by Chinese company ByteDance.
ByteDance
The Chinese parent company of TikTok, which maintains a minority stake in the new US venture.
Oracle
A key investor in the new TikTok US venture, chaired by Republican donor and ally of former President Trump, Larry Ellison.
John Moolenaar
A Republican Representative who has questioned the ability of the TikTok US venture to prevent Chinese influence.
Silver Lake
A managing investor in the new TikTok US venture.
What’s next
The judge overseeing the TikTok US venture deal is expected to rule on the legality and security of the agreement in the coming months.
The takeaway
The updated TikTok privacy policy and the new US venture raise significant concerns about user data privacy, national security, and the potential for Chinese influence, despite the venture's efforts to secure US user data. The complex political and business connections involved in the deal add an additional layer of complexity to this ongoing debate.
