TikTok ban avoided as US firms prepare to take control of app’s algorithm: What to know

The White House has confirmed that a new agreement on TikTok will see American companies take control of the algorithm that drives the video-sharing app’s feed, with US representatives also holding a majority on a new board overseeing its operations.
TikTok algorithm and oversight under US control
Press secretary Karoline Leavitt said on Saturday that Oracle would be tasked with managing TikTok’s data and security in the United States. She added that six of the seven seats on a planned governing board will be filled by American appointees.
“The algorithm will also be controlled by America as well,” Leavitt told Fox News, stressing that the administration views the arrangement as a safeguard against possible Chinese influence on the platform’s recommendation system.
The deal comes after months of political wrangling over the future of TikTok, whose Chinese parent company ByteDance has been under pressure from Washington to divest its US business. Congress had previously approved legislation calling for a ban on the app from January, but President Donald Trump has repeatedly granted extensions while negotiations continued.
Trump hails investors after Xi phone call
Speaking to reporters following a phone call with Chinese President Xi Jinping, Trump said American investors were ready to move forward. He described Xi as “a gentleman” and insisted that US stakeholders would maintain firm control.
“We have great American patriots that are buying it — very, very substantial people, people that love our country,” Trump said. “And they’re very smart technologically, and they will not let anything bad happen to TikTok.”
However, Beijing has not publicly confirmed whether it has agreed to a sale of a controlling stake. A statement released after Trump’s call with Xi offered no detail on the algorithm issue, one of the most contentious aspects of the negotiations.
Concerns over TikTok’s data practices and algorithm have been central to US scrutiny. Officials have argued that the app could be manipulated to subtly influence American users, particularly given its role in shaping news consumption and political discourse.
Leavitt said the administration was now “100 per cent confident that a deal is done” and suggested the final agreement could be signed in the coming days. She also emphasised that Trump recognised the need to safeguard user privacy while keeping the platform accessible, calling TikTok “a vital part of our democratic process.”