The news: TikTok’s first days of US ownership were marked by widespread errors and new data collection practices that are raising questions about how new ownership will impact users and marketers.

• Many users reported that TikTok’s famous For You algorithm seemed to have completely reset under the US ownership, as users were flooded with generic content.
• Creators are encountering issues with uploading videos, with claims that videos are remaining “under review” indefinitely.
• US TikTok users were greeted with a new pop-up upon ownership transfer outlining a new privacy policy that includes precise location tracking, tracking of AI interactions, and an expanded ads network, Wired reported, which will impact what ads users see on apps outside TikTok.

What’s happening? TikTok recently secured its future in the US after a long battle that threatened a national ban. The short-form leader has now transitioned into a majority-American entity helmed by TikTok USDS Joint Venture LLC, with owners including Oracle and Silver Lake.

But a prospective US TikTok has long raised concerns from users and marketers that now seem to be coming to fruition.

• During the deal’s extensive back and forth, there was uncertainty on whether users’ curated For You algorithms and content preferences would carry over to the new TikTok—a concern that felt more tangible in the first few days after the transition.
• Marketers shared similar concerns that core changes to the app would impact the algorithm and, consequently, the user experience and retention. Current For You page issues mean marketers are, at least temporarily, facing an app that is far less likely to distribute marketing content to target audiences.
• Beyond algorithmic changes, users and marketers remain concerned over the impacts of TikTok’s new, largely conservative ownership. The deal’s announcement suggests that new owners could have a heavy hand in content moderation that may alienate TikTok’s core user base.

Implications for marketers: TikTok maintains massive US reach for now—but marketers should remain cautious and flexible when investing due to current issues with the US app and lingering uncertainty over how ownership will affect the user experience.

Issues like a faulty recommendation algorithm could just be a temporary bump that comes with setting up new ownership. But if consumers have to retrain their algorithms, there remains a possibility that some—especially those disappointed with new ownership—will choose to tune out instead, limiting TikTok’s once reliable reach. With growth already slowing, marketers are best advised to keep watch of how US TikTok evolves to determine future investment.