Following the January deal to transfer control of the US TikTok operations to a joint venture, significant operational ties with ByteDance remain. Employees of the new entity, TikTok USDS Joint Venture, continue to collaborate with global teams on feature development, content moderation rules, and trend monitoring.
ByteDance retains a 19.9% stake in the joint venture and a seat on the board of directors. The Chinese company also maintains control over commercial areas like advertising and e-commerce. While the new US structure oversees data protection and recommendation algorithms, the extent of ongoing ByteDance engineering involvement remains unclear.
Staff at the US entity continue to use Lark, a messaging service developed by ByteDance, including its integrated Aime AI assistant. Although management prohibits sharing sensitive US user data via Lark, the responsibility for compliance rests largely with employees. Previously, the US Department of Justice alleged that sensitive data was shared via this platform.
TikTok US has implemented some separation measures, such as requiring escorts for visits to global offices and replacing ByteDance stock-based compensation with cash bonuses. The company argues these ties are essential for global business operations, while the White House maintains the deal ensures US control and data security.
The company faces ongoing legal challenges, including a $400 million settlement agreement with the US Department of Justice regarding child data protection, which is currently under judicial review. Additionally, while some states have lifted bans on TikTok for government devices, restrictions remain in more than 30 states.
