Since 2020, data privacy has been the main concern behind the American government’s push to force TikTok’s operation in the country out of Chinese ownership. U.S. lawmakers claimed users' data could be accessed by foreign governments, regulators raised national security concerns, and the app became a political bargaining chip caught in global power struggles. A sale was meant to fix that. Move TikTok under U.S. control, tighten oversight, and finally put the privacy debate to rest.
Instead, it has reignited new privacy concerns among users.
After months of back and forth, TikTok’s U.S. operations are now under American ownership, operating as a new entity called TikTok USDS Joint Venture LLC, with U.S. companies including Oracle taking majority stakes. On paper, the long-running saga appears settled. In practice, the app has entered a new phase of scrutiny.
Soon after the deal closed, TikTok updated its privacy policy. U.S. users were alerted through an in-app message and asked to agree before continuing to scroll. It immediately caused panic among users as the app now collects more private information about them.
One of the changes made to the privacy policy is location tracking. Prior to the update, TikTok did not collect exact GPS location data; it only collected approximate location data. Now, if you allow the app to access your location, it will collect precise details of where you are. This brings TikTok in line with the location data collection policies of platforms like X and Instagram.
Another update to the policy involves AI interactions. TikTok may now collect user data whenever someone interacts with an AI tool on the app.
It said that data would be collected from users when they “create an account, upload content, contact us directly, or otherwise use the Services, you may provide some or all of the following information … AI interactions, including prompts, questions, files, and other types of information that you submit to our AI-powered interfaces, as well as the responses they generate.”
“We automatically collect certain information from you when you use the Services, including … metadata that is automatically uploaded in connection with your user content, messages, or AI interactions, such as how, when, where, and by whom the user content was created, or a message or prompt was sent,” it said.
It also said that “Metadata may also include information, such as your username, that enables your user content to be traced back to your account by other users.”
TikTok has also expanded how it uses off-platform data, allowing information from advertisers, publishers, and measurement partners to shape ads both inside and outside the app. Rather than targeting an ending when you close TikTok, your activity elsewhere online can now loop back into what the platform shows you. This mirrors the wider ad-tech industry, but TikTok is joining that club at a moment when trust remains fragile.

