From Controversy to Compromise: How TikTok Reshaped U.S. Legislation

Image from the Providence Journal 

268.9 times a month—that is how often American users open TikTok. It doesn't stop there. The app has solidified itself as one of the major social media giants, with over 170 million participants who spend hours on it daily. Its power and influence are staggering, and while some view it as positive, or at least harmless, others perceive it as threatening. It is within this context that legislation was passed, leading to a controversial trial and TikTok's subsequent data stewardship arrangement with the American company Oracle.

The legal battle over TikTok in the United States sparked widespread controversy and garnered intense public attention. It began in April 2024, when Congress passed the "Protecting Americans from Foreign Adversary Controlled Applications Act." This legislation arose from politically charged debates over national security, focusing on concerns regarding data collection and potential foreign surveillance. These concerns are best encapsulated by former National Security Advisor Robert C. O’Brien, who stated, “National security officials all agree on one thing: TikTok poses a clear and present threat to America. We cannot allow the Chinese Communist Party... to control the platform that America’s youth overwhelmingly relies on for news.” This is one of many statements echoing the same sentiment. In light of this, the law mandated that ByteDance, TikTok's Chinese parent company, divest its U.S. operations by January 19, 2025, or face a nationwide ban.

ByteDance swiftly challenged the law, asserting that “Congress [had] enacted a massive and unprecedented speech restriction.” In their request for an injunction, they presented a particularly striking argument: “This Court should ensure that this critical protection has not been diluted by a decision upholding a law banning a speech platform used by half the country,” emphasizing that such a ban would take effect mere days before a presidential inauguration. This was just one of many compelling points raised by the social media giant. ByteDance also pointed out that they operated as a Cayman holding company, predominantly owned by institutional investors. Additionally, they stressed that, as in all strict scrutiny cases, the burden of proof rested squarely with the government.

Nevertheless, the U.S. Supreme Court ultimately upheld the law on January 17, 2025. In this landmark decision, the Court established that safeguarding national security outweighs potential free speech concerns. Shortly after, TikTok was infamously banned for a total of 12 hours. This ruling led to a massive public outcry and significant criticism from a legal standpoint. However, few people are aware of how TikTok managed to remain operational in the United States and the ongoing concerns that linger as a result.

The solution to addressing national security concerns with TikTok was found in Oracle, a global leader in enterprise technology celebrated for its expertise in data management and cloud computing. Oracle secured its role as TikTok's U.S. partner, surpassing competitors like Walmart and Microsoft, and established the framework for TikTok USA. This partnership entrusted Oracle with managing and safeguarding U.S. user data, which involves storing data on American-based servers. This has two main purposes. First, it ensures compliance with U.S. laws. Second, it offers protection against unauthorized access. Oracle also oversees TikTok’s algorithms and content moderation to mitigate potential foreign influence. Nevertheless, Oracle's work is also supported by external safeguards such as routine audits, transparency measures, and restrictions on ByteDance's access to sensitive data.

This may sound complicated, but the general dynamic can be illustrated through the lens of a simplified analogy. Think of TikTok as a child that is not particularly trusted by its parents. Oracle would then be some type of babysitter that ensures the child stays safe within the house (U.S.-based servers), plays appropriately (monitors algorithms), and is shielded from outside dangers (foreign interference). The parents would be the U.S. government. Their role is to check in regularly to confirm the babysitter is doing a responsible job. This is done through audits and transparency measures. This partnership not only reinforces TikTok's operations in the U.S. but also addresses national security concerns with a reliable, structured system.

This deal may have secured TikTok's continued presence in the United States, but it remains subject to significant criticism. For one, many argue that it has failed to comply with U.S. data protection laws, as the act mandated a complete divestiture of ByteDance's control. However, this was never fully realized, as ByteDance retained control over TikTok's algorithm—a major sticking point during negotiations. This raises questions about whether the deal's purpose was undermined, with skeptics doubting its ability to eliminate potential foreign influence and safeguard U.S. user data. Tech experts, such as cybersecurity analyst Mackenzie Ferguson, have also criticized the lack of transparency in implementing safeguards. Meanwhile, public opinion is divided: some view the deal as a necessary compromise, while others—including Senators Josh Hawley, Marco Rubio, and Tom Cotton—believe it falls short of addressing critical national security concerns.

All of this raises a pivotal question: Has TikTok USA truly resolved its legal challenges, or are further complications inevitable? Regardless of what the future holds, this case stands as a watershed moment with far-reaching implications for geopolitics, free speech, and the regulation of social media platforms. Its significance will resonate for years, shaping the interplay between technology and governance on a global scale.

Works Cited

“Facts Matter: How TikTok Protects U.S. User Data.” TikTok Newsroom, TikTok, 7 February 2025. Web. 03/23/2025.

Ferguson, Mackenzie. “Cybersecurity Stocks Surge as $32B Deal Reshapes the Industry.” Nasdaq, 21 March 2025. Web. [Access Date]

O’Brien, Robert C. “National Security Officials All Agree on One Thing: TikTok Poses a Clear and Present Threat to America.” Select Committee on the CCP, United States Congress, 7 March 2024. Web. 03/23/2025.

“Protecting Americans from Foreign Adversary-Controlled Applications Act.” Congress.gov, United States Congress, 03/13/2024. Web. 03/23/2025.

“Senators Hawley, Cotton, and Rubio Demand Answers on Google’s Relationship with Huawei.” Josh Hawley Senate Website, 7 August 2019. Web. 03/23/2025.

"Top TikTok Statistics." Charle Agency, Charle Agency, 01.04.2025]. Web. 03/23/2025. 

Hutchinson, Andrew. “Oracle Emerges as Most Likely Partner for US TikTok Deal.” Social Media Today, 13 March 2025. Web. 03/23/2025.

“Oracle Chosen as TikTok’s Secure Cloud Provider.” Oracle Newsroom, Oracle Corporation, 19 September 2020. Web. 03/23/2025.

“White House Seriously Considering Deal from Oracle to Run TikTok.” Politico, 16 March 2025. Web. 03/23/2025.

The contents of the articles represent solely the ideas and opinions of the authors, and in no way reflect the views of Bocconi University.