Congress doesn’t seem to know if the TikTok deal complies with its law | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.Hamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsAIExpandOpenAIAnthropicSee all AIVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingPolicyExpandAntitrustPoliticsLawSecuritySee all policyScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersExpandThe Verge DailyInstallerVerge DealsNotepadOptimizerRegulatorThe StepbackArchivesStoreSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Congress doesn’t seem to know if the TikTok deal complies with its lawComments DrawerCommentsLoading commentsGetting the conversation ready...NewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechCongress doesn’t seem to know if the TikTok deal complies with its lawTrump’s TikTok deal leaves lawmakers with even more questions.Trump’s TikTok deal leaves lawmakers with even more questions.by Lauren FeinerCloseLauren FeinerSenior Policy ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Lauren FeinerJan 23, 2026, 10:08 PM UTCLinkShareGiftImage: Cath Virginia / The Verge, Getty ImagesPart OfTikTok ban: all the news on the app’s shutdown and return in the USsee all updates Lauren FeinerCloseLauren FeinerPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Lauren Feiner is a senior policy reporter at The Verge, covering the intersection of Silicon Valley and Capitol Hill. She spent 5 years covering tech policy at CNBC, writing about antitrust, privacy, and content moderation reform.TikTok finally closed a deal meant to bring it into compliance with the law that should have banned it a year ago, and the lawmakers who passed that law still don’t seem to know what’s going on.The company announced Tuesday that its US service is now part of the separate TikTok USDS Joint Venture LLC, with parent company ByteDance holding just a 19.9 percent stake in that new entity. The rest is owned by Oracle and investment firms Silver Lake and MGX, as well as smaller investors including Michael Dell’s family investment firm. Oracle will store US data and the joint venture will “retrain, test, and update the content recommendation algorithm on U.S. user data.” The new entity will also “have decision-making authority for trust and safety policies and content moderation.”The sparse details in the press release shed little light on outstanding questions from the time that the deal was first announced, such as whether a licensing agreement for the algorithm can be crafted in a way that avoids the sort of relationship with ByteDance that would be prohibited by the law. Even lawmakers who supported the bill seem to be in the dark. “Does this deal ensure China does not have influence over the algorithm? Can the parties involved assure Americans their data is secure?” House Select Committee on China Chair John Moolenaar (R-MI) asked in a statement following the deal’s closure. “Those are questions that need to be answered as the Select Committee does oversight of this deal.”Select Committee Ranking Member Ro Khanna (D-CA), one of the few lawmakers who opposed the initial bill and introduced another to repeal it, said in a statement that the deal “is once again causing uncertainty among many creators.” Khanna pledged to engage with people whose livelihoods depend on the app “to find the best way forward and to prevent changes that could disrupt the rapidly growing creator economy while prioritizing data security.”Sen. Ed Markey (D-MA), who voted to approve the foreign aid package that included the divest-or-ban bill, later sought to create a legal extension for a deal to get done. President Donald Trump flouted the original bill’s deadlines anyway, and Markey later proposed calling off the ban legally. Now that a deal has been reached, Markey said in a statement, “this TikTok deal raises many more questions than answers.”Trump has played a significant role in how the negotiations have played out, talking about the TikTok deal with China’s President Xi Jinping, and at one point bantering at a press conference with Oracle chairman Larry Ellison that they could “negotiate in front of the media” over the deal. Markey griped that the White House “has provided virtually no details about this agreement, including whether TikTok’s algorithm is truly free of Chinese influence,” despite repeated requests for details. The White House and TikTok did not immediately respond to requests for comment. “This lack of transparency reeks,” Markey said. “Congress has a responsibility to investigate this deal, demand transparency, and ensure that any arrangement truly protects national security while keeping TikTok online.”Adding to the frustration for many Democrats is the fact that some of Trump’s close allies, like Ellison, stand to gain from the arrangement. “This ‘deal’ helps Trump’s rich friends get richer in exchange for turning TikTok into a propaganda machine for the White House,” Energy and Commerce Committee Ranking Member Frank Pallone (D-NJ), who supported the initial bill, wrote on X. “The sparse information provided doesn’t address serious concerns about compliance with the law or address the national security threat posed by Beijing’s continued control of the platform.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Lauren FeinerCloseLauren FeinerSenior Policy ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Lauren FeinerCreatorsCloseCreatorsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All CreatorsNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsPolicyClosePolicyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PolicyPoliticsClosePoliticsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PoliticsPrivacyClosePrivacyPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All PrivacySpeechCloseSpeechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All SpeechTechCloseTechPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TechTikTokCloseTikTokPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TikTokMore in: TikTok ban: all the news on the app’s shutdown and return in the USWhat TikTok’s new owners mean for your feedEmma RothJan 23The TikTok deal is done, finallyRichard LawlerJan 23The TikTok deal could finally close this week.Terrence O'BrienJan 22Most PopularMost PopularClaude Code is suddenly everywhere inside MicrosoftTesla finally kills Autopilot in a bid to boost FSD subscriptionsEpic and Google have a secret $800 million Unreal Engine and services dealSony announces its first turntables in yearsGoogle won’t stop replacing our news headlines with terrible AIThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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Congress doesn’t seem to know if the TikTok deal complies with its law | The Verge

The closure of the TikTok agreement, finalized on January 23, 2026, has prompted significant concern and uncertainty within the United States Congress, highlighting a perceived lack of clarity surrounding the deal’s adherence to the legislation originally intended to ban the platform. The agreement establishes TikTok USDS, a joint venture involving ByteDance, Oracle, and investment firms Silver Lake and MGX, with ByteDance holding a 19.9% stake. This configuration is meant to ensure compliance with the divest-or-ban law, primarily through Oracle’s role in storing US user data and the joint venture’s responsibility for retraining, testing, and updating the content recommendation algorithm.

However, the sparse details released alongside the announcement have fueled criticism, particularly from lawmakers who originally championed the legislation. Representative John Moolenaar (R-MI), chair of the House Select Committee on China, voiced immediate questions regarding whether the arrangement genuinely eliminates Chinese influence over the algorithm and whether assurances regarding US data security have been adequately provided. Similarly, Ranking Member Ro Khanna (D-CA), who initially opposed the original bill and introduced another to repeal it, expressed continued “uncertainty among many creators.” Khanna pledged to engage with creators to navigate this situation while prioritizing data security and preventing disruptions to the rapidly growing creator economy.

Adding to the frustration is the lack of transparency provided by the White House. President Donald Trump has played a significant role in the negotiations, engaging in discussions with China’s President Xi Jinping and even proposing a “negotiate in front of the media” scenario with Oracle chairman Larry Ellison. Representative Frank Pallone (D-NJ), a supporter of the initial bill and now ranking member of the Energy and Commerce Committee, criticized the White House's near-total absence of specific information, describing the situation as “reeks” and highlighting concerns about the deal’s compliance and potential for ByteDance to maintain control through its majority stake.

The core of the congressional concern revolves around the algorithm itself. The legislation’s intention was to prevent ByteDance from using the algorithm – a critical component of TikTok’s success – to disseminate propaganda or influence user behavior. The current arrangement, with ByteDance holding a majority stake, introduces a complex layer of scrutiny. Ensuring that the algorithm is truly “free of Chinese influence,” as demanded by the law, remains a paramount issue.

Furthermore, the involvement of investment firms like Silver Lake and MGX introduces a new dimension of scrutiny. While these firms are not owned by the Chinese government, their relationship with ByteDance—and their potential influence—must be investigated. The lack of detailed information regarding the decision-making authority within the joint venture—specifically who controls the algorithm update—is creating heightened tensions between the executive branch and Congress.

The situation has generated a call for increased congressional oversight of the TikTok USDS joint venture. Representative Markey (D-MA), who initially voted to approve the foreign aid package containing the divest-or-ban bill, has proposed a legal extension for the deal, recognizing the issues raised by the current arrangement. This suggests a recognition among some within Congress that the existing legal framework might not adequately address the specific challenges posed by the complex, multi-stakeholder structure created by the TikTok deal. Ultimately, Congress faces the challenge of balancing the need to prevent foreign influence with the implementation of a solution that allows the platform to remain operational while upholding national security concerns.