tech

February 1, 2026

Why TikTok’s first week of American ownership was a disaster

App endured a major outage and user backlash over perceived censorship. Now it’s facing an inquiry by the California governor and an ascendant competitor

Why TikTok’s first week of American ownership was a disaster

TL;DR

  • TikTok's Chinese parent company, ByteDance, finalized a deal to sell the app to US investors, including Oracle, on January 22nd.
  • Shortly after the sale, TikTok altered its privacy policy to allow for more extensive data collection, including precise user location tracking.
  • A severe winter storm caused power outages at Oracle datacenters, leading to widespread TikTok outages and users unable to upload or view videos.
  • Prominent personalities accused TikTok of censoring videos critical of federal immigration agents following the death of Alex Pretti.
  • TikTok initially blamed the issues on the storm, with Oracle confirming a datacenter power outage impacted the app.
  • California Governor Gavin Newsom announced an investigation into whether TikTok had censored videos critical of Donald Trump.
  • User backlash over perceived censorship led to an exodus from TikTok, boosting competitor Upscrolled in app store rankings.
  • TikTok's first week in the US saw damaged user trust, with its future uncertain despite its large global user base.

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