On Friday, the U.S. Justice Department said that federal employees may once again download TikTok on government-issued devices, determining that the app no longer poses the national security risks that led to a federal ban in 2022.
Justice Department Says TikTok’s New Structure Addresses Security Concerns
In a memorandum addressed to President Donald Trump, the department said the previous restriction no longer applies following a restructuring by TikTok’s Chinese parent, ByteDance.
The reorganization transferred control of TikTok’s U.S. user data and operations to a new joint venture, TikTok USDS, which the department said changes the security landscape.
“We understand you have since instructed that employees of Executive Branch agencies may download TikTok onto their official devices, subject to the agency’s discretion and consistent with all applicable workplace policies. We now memorialize our prior advice,” the memo said.
The Justice Department added that ByteDance’s continued 19.9% ownership stake in TikTok USDS “makes no practical difference,” despite the company remaining a minority shareholder.
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Oracle-Backed Venture Takes Control of U.S. Data
Under the new ownership structure, American and global investors hold an 80.1% stake in TikTok USDS, while ByteDance retains the remaining 19.9%.
TikTok said in January that the joint venture would retrain, test and update the platform’s recommendation algorithm using U.S. user data, with the system secured on Oracle Corp’s (NYSE:ORCL) U.S.-based cloud infrastructure.
Oracle is one of the venture’s three principal investors.
ByteDance has said TikTok USDS will safeguard U.S. user data, applications and algorithms through enhanced cybersecurity and privacy protections.
The platform has roughly 200 million U.S. users.
Trump Declined To Enforce Divestiture Law
The move comes after Trump chose not to enforce a law passed in April 2024 requiring ByteDance to divest TikTok’s U.S. assets by January 2025 or face a nationwide ban.
The measure was later upheld by the U.S. Supreme Court.
Reuters reported in September that ByteDance would retain ownership of TikTok’s U.S. business while ceding control over the app’s U.S. data, content and recommendation algorithm to the joint venture.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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