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TikTok’s newly formed US joint venture has updated its privacy policy to expand the collection of location data from its 200 million American users, a significant change following the conclusion of a deal between investors and TikTok’s Chinese parent company ByteDance.
The revised privacy terms, published after the deal closed on Thursday, now state that the platform may collect “precise location data, depending on your settings.” This represents a notable shift from the previous policy, which limited collection to “approximate” location data only.
While users will have the ability to disable location services through their device settings, this expanded data collection capability raises questions about user privacy. The company has stated that all sensitive personal information will be processed “in accordance with applicable law.”
Prior to this update, TikTok’s data collection was already substantial, gathering location information based on users’ SIM cards and IP addresses. However, the platform had specifically avoided collecting GPS information from American users on updated versions of the app, according to its 2024 privacy policy.
Industry experts note that precise location tracking represents a significant expansion of data collection capabilities that could potentially provide much more detailed insights into users’ movements and behaviors.
The company has indicated that precise location sharing hasn’t yet been implemented for US users. When activated, the feature is expected to be optional and disabled by default, requiring users to opt in through a pop-up notification. No specific timeline for this implementation has been announced.
Similar data collection practices are already in place for TikTok users in the UK and Europe, where the information supports the platform’s “Nearby Feed” feature that connects users with local events and businesses.
Beyond location tracking, the joint venture is also broadening its data collection around users’ interactions with TikTok’s artificial intelligence tools. This includes storing prompts, questions, and information about how, when, and where AI content was created or requested.
The newly formed entity, TikTok USDS Joint Venture LLC, includes cloud computing giant Oracle as a key investor. Oracle, which is making significant investments in AI infrastructure, will oversee the retraining of TikTok’s recommendation algorithm using existing American user data. The company is chaired by Larry Ellison, a prominent Republican donor and ally of former President Donald Trump, whose administration played a role in brokering the deal.
This arrangement follows years of tensions between Washington and Beijing regarding TikTok’s operations. In 2024, the US passed legislation requiring ByteDance to sell its US operations to American investors by January 2025 or face a ban, driven by concerns about potential Chinese government access to American user data.
The joint venture, which includes Silver Lake (a US tech investment firm) and Abu Dhabi state-owned investment fund MGX alongside Oracle, was established with the stated mission of securing “U.S. user data, apps and the algorithm through comprehensive data privacy and cybersecurity measures.”
ByteDance maintains a minority stake of just under 20% in the venture, a point that has drawn scrutiny from some US lawmakers. On Friday, Representative John Moolenaar, who chairs the House Select Committee on China, expressed ongoing concerns about ByteDance’s continued involvement.
“Does this deal ensure China does not have influence over the algorithm? Can the parties involved assure Americans their data is secure?” Moolenaar questioned in a statement, indicating that Congressional oversight of the arrangement will continue.
The revised privacy policy and new ownership structure mark a pivotal moment for TikTok in the United States, balancing national security concerns with the platform’s immense popularity among American users. As the joint venture begins operations, both privacy advocates and government officials will be watching closely to see how user data is managed under this new arrangement.
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10 Comments
I’m curious to learn more about how TikTok plans to handle this sensitive user data ‘in accordance with applicable law’. The details around security, storage, and third-party access will be critical.
Good point. TikTok will need to provide clear, verifiable information about their data practices to earn user trust on this issue.
This is concerning. Collecting precise location data raises major privacy issues, especially for a platform with TikTok’s massive user base. Transparency and user control over data collection are essential.
I agree. Precise location tracking goes too far and should require explicit user consent, not just the ability to opt-out.
This seems like a significant shift in TikTok’s data collection practices. I wonder what the business rationale is behind expanding location tracking, and whether users will accept these changes.
Exactly. TikTok should be upfront about their motivations and how this benefits (or harms) the user experience.
As a user, I’m concerned about the privacy implications of this move. Precise location data can be highly sensitive and vulnerable to misuse. TikTok needs to implement robust safeguards.
I’m skeptical of TikTok’s motivations here. Precise location tracking seems like an overreach that could undermine user trust. They need to make a strong case for this change.
Collecting precise user location is a concerning development. I hope TikTok focuses on transparency and user control to address privacy risks, not just legal compliance.
This expanded data collection capability is worrying. TikTok should clearly explain how they will protect user privacy and prevent misuse of this sensitive information.