By AFP
January 22, 2026
Image: — © AFP Nicolas TUCAT
Alex PIGMAN
TikTok announced Thursday it has established a majority American-owned joint venture to operate its US business, allowing the company to avoid a ban over its Chinese ownership.
The TikTok USDS Joint Venture LLC will serve more than 200 million users and 7.5 million businesses while implementing strict safeguards for data protection, algorithm security and content moderation, the company said.
The new structure responds to a law passed under President Donald Trump’s predecessor, Joe Biden, that forced Chinese-owned ByteDance to sell TikTok’s US operations or face a ban in its biggest market.
ByteDance retains a 19.9 percent stake in the joint venture — keeping its ownership below the 20 percent threshold stipulated by the law.
Three investors — Silver Lake, Oracle and Abu Dhabi-based AI investment fund MGX — each hold 15 percent stakes. Oracle’s executive chairman Larry Ellison is a longtime Trump ally.
Other investors include Dell Family Office, affiliates of Susquehanna International Group and General Atlantic, and several other investment firms.
The joint venture will retain decision-making authority over trust and safety policies and content moderation for US users, while TikTok’s global entities will manage international product integration and commercial activities including e-commerce and advertising.
Under the arrangement, US user data will be stored in Oracle’s secure cloud environment, with cybersecurity audited by third-party experts and adhering to federal standards, TikTok said.
The joint venture will be governed by a seven-member, majority-American board including TikTok CEO Shou Chew and executives from major investment firms.
TikTok executive Adam Presser was appointed CEO of the new entity, with Will Farrell serving as chief security officer.
The 2024 law came as US policymakers, including Trump in his first presidency, warned that China could use TikTok to mine Americans’ data or exert influence through its algorithm.
But Trump, crediting the app for his appeal with young voters, delayed enforcement through successive executive orders, most recently extending the deadline to January 22.
The deal largely confirms an outline announced to staff by Chew last month.
Trump said in September that a new venture had been agreed with China and would meet the law’s requirements.
Trump specifically named Ellison, one of the world’s richest men, as a major player in the arrangement.
Ellison has returned to the spotlight through his dealings with Trump, who has brought his old friend into major AI partnerships with OpenAI.
Ellison has also financed his son David’s recent takeover of Paramount and bidding war with Netflix for Warner Bros.
Snapchat settles to avoid social media addiction trial
By AFP
January 22, 2026
Lawsuits filed against Snap and other social media platforms seek to hold them accountable for mental health ills resulting from algorithms designed to keep people perpetually scrolling - Copyright AFP Ina FASSBENDER
Snapchat on Wednesday confirmed it made a deal to avoid a US civil trial accusing it, along with Meta, TikTok, and YouTube, of addicting young people to social media.
A jury trial is set to begin in Los Angeles next week in what is being called a “bellwether” proceeding because its outcome could set the tone for a tidal wave of similar litigation across the United States.
Many of those cases are being coordinated by the Social Media Victims Law Center, a legal organization dedicated to holding social media companies accountable for harms caused to young people online.
“The parties are pleased to have been able to resolve this matter in an amicable manner,” parent company Snap and the Social Media Victims Law Center said, disclosing no details regarding the settlement in the case playing out in Los Angeles.
Internet titans have argued that they are shielded by US law that frees them of responsibility for what social media users post, but these cases argue they are culpable due to business models designed to hold people’s attention and promote content that winds up harming their mental health.
Social media firms are accused in suits of addicting young users to content that has led to depression, eating disorders, psychiatric hospitalization, and even suicide.
Snap chief executive Evan Spiegel was slated to testify at the trial along with other social media firm executives, including Meta boss Mark Zuckerberg.
“Unfortunately, there are many potential dangers in using online social media, and the owners of these platforms bear responsibility for its proper use,” a law center spokesperson contended in a posted video.
The suit heading for jury trial in Los Angeles accuses social media algorithms of addicting a 19-year-old woman, causing severe mental health problems.
The trial before Judge Carolyn Kuhl in state court is expected to start the first week of February, after a jury is selected.
Lawsuits accusing social media platforms of practices endangering young users are also making their way through federal court in Northern California and state courts across the country.
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