DOJ clears TikTok for US government devices following ByteDance data transfer deal
The US Justice Department has reversed a 2022 ban on TikTok for government devices, validating the app’s new joint venture structure and reducing regulatory uncertainty for its US operations.
The US Justice Department announced on Friday that federal employees may now download TikTok on government devices. This reversal of a 2022 national security ban follows ByteDance’s transfer of control over the app’s US user data and operations to a newly structured joint venture.
The joint venture, TikTok USDS, completed its formation in January. Under the divestiture agreement, American and global investors hold an 80.1 per cent stake, while ByteDance retains a 19.9 per cent minority share.
In a memorandum opinion addressed to President Donald Trump, the Justice Department concluded that the current version of the application no longer poses national security risks. The memo noted that employees of Executive Branch agencies may download TikTok onto official devices, "subject to the agency’s discretion and consistent with all applicable workplace policies."
The Justice Department added that the fact ByteDance "remains a minority shareholder in the joint venture operating TikTok USDS makes no practical difference." This structural separation is designed to permanently insulate American user data from foreign influence.
To address previous cybersecurity concerns, the venture has retrained, tested and updated TikTok’s content recommendation algorithm using exclusively US user data. This algorithm is now secured within Oracle’s US cloud infrastructure, with Oracle serving as one of the venture’s three primary investors.
This regulatory shift occurs alongside the administration’s decision not to enforce an April 2024 law that mandated ByteDance to sell its US assets or face a nationwide ban. That measure, previously upheld by the Supreme Court, has been effectively sidelined as the joint venture achieves its compliance objectives.
For investors and technology executives, the clearance validates complex data-localization joint ventures as a viable solution to cross-border regulatory friction. With approximately 200 million American users, TikTok’s stabilized US footprint removes a significant valuation overhang and provides a blueprint for foreign-owned tech platforms navigating Washington scrutiny.
ByteDance stated that TikTok USDS Joint Venture LLC will maintain rigorous data privacy and cybersecurity measures for US applications and algorithms. The White House and TikTok did not immediately respond to requests for comment.
