TikTok USDS launch faces technical issues and privacy criticism

The transfer of TikTok's American business to the new entity TikTok USDS Joint Venture LLC, which officially began on January 23, 2026, has been far from smooth. While US authorities publicly welcomed the deal, the service's first days under new management were marked by technical glitches, user anxiety, and sharp criticism of updated privacy rules.

According to US media reports, American TikTok users encountered new terms of service upon their first login, which significantly expand data collection. The revised policy now includes the collection of precise location data and actively monitors user activity outside the app for personalized advertising purposes. Furthermore, interactions with generative AI within the service will be saved and analyzed, raising questions about the scale of control and privacy.

Simultaneously, the service faced technical issues. Users reported problems logging into accounts and uploading videos, with many clips stuck in review for hours. Notably, such disruptions were not observed outside the United States. TikTok USDS attributed the situation to an incident at an American data center, but social media quickly buzzed with theories about possible selective content moderation amid protests in Minneapolis.

A key promise from the new leadership was maintaining connectivity with TikTok's global ecosystem, ensuring American users continue to see international content. However, it was also revealed that the recommendation algorithm for the US will be completely retrained on local data to address concerns about influence from ByteDance and China. Whether this new algorithm can preserve TikTok's signature 'magic' or risks turning the American version into an isolated platform remains an open question.