TikTok Outage Fuels Censorship Fears as New US Owners Take Control

TikTok is facing renewed scrutiny in the United States after a widespread service outage disrupted the platform just days after its American operations officially transitioned to a new, US-led ownership structure. The technical failure, which affected millions of users nationwide, has intensified concerns around transparency, censorship, and data privacy at a critical moment for the short-form video giant.

Reports suggest that the outage stemmed from a data centre failure and coincided with TikTok’s handover to a joint venture controlled by majority-US investors. While the company has described the incident as a technical issue, the timing sparked speculation among users that politically sensitive content—particularly videos criticizing Immigration and Customs Enforcement (ICE) raids in Minnesota—was being deliberately suppressed.

Outage Triggers Censorship Concerns

As TikTok feeds went dark or failed to refresh, many users took to other social platforms to question whether the outage masked algorithmic interference. The suspicions underscore how fragile user trust remains following years of debate over TikTok’s influence, moderation practices, and ties to China-based parent company ByteDance.

Though no evidence has emerged to suggest intentional censorship, the perception alone has proven damaging. Experts note that platforms undergoing ownership transitions are especially vulnerable to credibility crises, particularly when technical disruptions overlap with politically charged content.

User reports indicate problems with TikTok since 8:05 PM EST.
How is it affecting you? #TiktokDownhttps://t.co/XTqQicEGuf

— Downdetector (@downdetector) January 27, 2026

Privacy Policy Changes Add Fuel to the Fire

The outage arrives just as TikTok’s new US joint venture updated its privacy policy to allow the collection of precise location data, a significant shift from its previous policy of gathering only approximate location information. As first reported by the BBC, the policy applies to TikTok’s estimated 200 million American users, though precise location sharing is expected to remain optional and disabled by default.

The company says users will be prompted to opt in and can disable location services at any time. Still, privacy advocates warn that the expanded data permissions—combined with the outage—could deepen public unease about how user information is handled under the new ownership.

In addition to location data, the updated policy broadens TikTok’s ability in US to collect information related to interactions with its AI tools, including prompts, usage timing, and contextual metadata.

Oracle’s Role and Political Oversight

TikTok’s US operations are now overseen by TikTok USDS Joint Venture LLC, backed by Oracle, Silver Lake, and Abu Dhabi–based investment firm MGX. Oracle will host and retrain TikTok’s recommendation algorithm using American user data within its US cloud infrastructure, a move designed to address longstanding national security concerns.

Despite these assurances, ByteDance retains a minority stake just under 20%, prompting skepticism from lawmakers. Republican Representative John Moolenaar, chair of the House Select Committee on China, has called for closer oversight, questioning whether the deal fully insulates the algorithm from Chinese influence.

A Defining Moment for TikTok in America

The convergence of a major outage, privacy policy changes, and political scrutiny marks a defining test for TikTok’s rebranded US entity. For a platform built on constant connectivity and cultural relevance, even brief disruptions can carry outsized consequences.

As TikTok works to restore confidence, analysts say transparency will be critical. Without clear communication, technical hiccups risk being interpreted as something far more consequential—at a time when TikTok’s future in the US is still under a microscope.