TikTok has announced a new deal allowing it to continue operating in the US, securing its future after potential bans. The deal introduces significant changes for its 200 million American users as a new entity takes over operations.

• A majority-American board now owns and operates a separate entity, TikTok USDS Joint Venture LLC, which controls TikTok in the US.
• The content recommendation algorithm has been licensed to tech firm Oracle, which will retrain it based on US user data and secure it in Oracle’s secure US cloud environment.
• TikTok updated its terms of service on Thursday, January 22, for US users, with new rules including limiting access for children under the age of 13 and requiring user agreement to the limitations of generative AI.

TikTok has finalized a deal to separate its US operations from its global business, ensuring the popular app can continue operating in the United States. This development concludes a multi-year dispute between Washington and Beijing over national security concerns regarding user data.

• A new independent entity, TikTok USDS Joint Venture LLC, will secure US user data, apps, and algorithms.
• The joint venture will be majority-owned by US investors, with Oracle, Silver Lake, and MGX each holding a 15% stake, and ByteDance retaining 19.9%.
• The app's influential algorithm will be retrained using only US user data and secured within Oracle's US cloud environment, potentially leading to a different user experience for American users.

Social media companies are reluctantly complying with Australia's landmark ban preventing users under 16 from having accounts, fearing it could set a global precedent, according to eSafety Commissioner Julie Inman Grant. The policy, implemented in December, has already resulted in the shutdown of 4.7 million child accounts.

• Australia is the first jurisdiction to ban social media for under-16s without parental approval exemptions, making its laws the world's strictest.
• eSafety Commissioner Julie Inman Grant claims social media platforms view children as an "incredibly lucrative" market and are resisting regulation.
• Companies face fines of up to A$49.5 million ($33 million, £24.5 million) for non-compliance, with Snapchat being a key focus for further notices.