The problems began days after the video platform started operating under a new U.S.-led joint venture, created to keep the app running after months of stress on its Chinese parent company, ByteDance. 

Almost immediately, users complained that the app was unstable. Videos stalled. Feeds repeated old clips. Engagement figures dropped to zero for some creators.

Then came the more serious allegation, censorship.

Across TikTok, X and other platforms, users claimed that content critical of President Donald Trump or U.S. Immigration and Customs Enforcement was being limited. Others said direct messages containing the word “Epstein” would not send at all. 

There’s been screenshots of the error message and CNBC confirmed that messages containing the word “Epstein” triggered a warning on TikTok’s messaging system, although it said it could not independently prove wider political suppression. 

The error message shown to users read: “This message may be in violation of our Community Guidelines, and has not been sent to protect our community.”

TikTok says this is not policy. A spokesperson for the U.S. joint venture told CNBC that the platform does not block the name “Epstein” and is investigating why some users are affected.

The sensitivity around the TikTok outage is obvious. Jeffrey Epstein, the late financier and convicted sex offender, is still at the centre of renewed public attention as the U.S. Department of Justice continues to release documents linked to its investigations, while stopping short of publishing the full set of so-called Epstein files.

What pushed the issue beyond social media chatter was the reaction from California.

Governor Gavin Newsom’s office said it had received complaints of suppressed content and claimed it had confirmed some cases. 

In a post on X, his press office stated: “Our office has received reports — and independently confirmed instances — of suppressed content critical of President Trump.”

It added: “[Gavin] Newsom is launching a review of this conduct and is calling on the California Department of Justice to determine whether it violates California law.”

No evidence was released to back this up. Still, the comments gave official weight to what had, until then, been largely user-driven outrage.

One of the viral posts came from freelance journalist David Leavitt, who shared screenshots showing his videos labelled “Ineligible for Recommendation”. He argued that anti-Trump and anti-ICE content was being quietly sidelined.

ICE is currently involved in a controversial enforcement operation in Minneapolis. The fatal shooting of two U.S. citizens during federal actions has triggered protests and political discuss. Videos from the city have circulated widely online, making social media a key battleground for public opinion.

TikTok says that content from Minnesota was not blocked. When asked directly about ICE-related accusations, a spokesperson said videos of the incident had been available on the platform since Saturday.

TikTok U.S. operation admitted that a power outage at a data centre caused what it described as a “cascading systems failure”. In a post on X, the company said: “While the network has been recovered, the outage caused a cascading systems failure that we’ve been working to resolve with our data center partner.”

Users were warned to expect slow load times, timeouts when posting, and misleading engagement figures. TikTok said creators seeing zero views or likes were facing a display error, not an actual loss of data.

The scale of the TikTok outage was hard to ignore. Downdetector recorded more than 615,000 reports in a single weekend in January 2026. At one point, 36,000 complaints were logged in just 15 minutes. Most reports cited app crashes, login failures, broken feeds and uploads stuck in review.

Some users noticed something else. Certain videos from UK outlets, including the BBC and The Guardian, were visible abroad but unavailable to U.S. accounts. That discovery led to suspicion that the algorithm itself had changed under new ownership.

After the U.S. Supreme Court upheld a law requiring ByteDance to divest TikTok’s American business or face a ban, negotiations accelerated. 

Last week, TikTok confirmed the creation of a new joint venture to run its U.S. app. ByteDance now holds 19.9%, while U.S. and global investors control 80.1%.

Oracle, Silver Lake and Abu Dhabi-based MGX each own 15%. Oracle co-founder Larry Ellison, a long-time Trump ally, had been floated by the president as a potential buyer as far back as early last year. MGX has previously been involved in Trump-era deals through its links to U.S.-backed technology projects.

Soon after the deal was announced, U.S. users were asked to accept an updated privacy policy, adding to the sense that the ground had shifted beneath their feet.

For now, TikTok says the worst is over, the network is back online, the outage is being fixed, and the company rejects claims of political censorship.

But the coincidence of mass outages, blocked messages, a heated election climate and a forced ownership change has left many unconvinced. 

The feature allows users to buy digital gift cards valued between $10 and $500, giving recipients a simple way to shop from the app’s growing catalogue. 

Cards are sent by email and can only be redeemed by users with a TikTok account. Once claimed, the value is added straight to the recipient’s TikTok balance, ready to spend.

TikTok Shop is working to prove it can move beyond impulse buys and creator-led sales into mainstream online retail. In adding gift cards, it is stepping directly into territory long dominated by Amazon and eBay, where gifting is a huge driver of repeat spending.

What stands out is how social the process is designed to be. Buyers can choose from animated designs built for birthdays, weddings, thank-you messages and other occasions. Recipients can reply with a note of thanks or send a gift card back. TikTok says this is only the start.

A spokesperson said future updates will enhance personalisation, including the option to attach recorded or uploaded video messages. The company also pointed to an “interactive unboxing that captures their reaction in real-time,” though details were not disclosed.

For now, the TikTok Shop digital gift cards are only available for purchase in the U.S., with no timeline announced for other markets.

The rollout follows a strong showing during the 2025 Black Friday and Cyber Monday period, when TikTok Shop recorded more than $500 million in U.S. sales over four days. 

That figure represents almost 50% growth compared with the same period in 2024. Brands such as Disney and Samsung took part in the holiday push, a sign that TikTok Shop is attracting more established retailers, not just small merchants and influencers.

At the same time, the platform is widening its product mix. Alongside everyday goods, TikTok Shop has moved into luxury fashion and resale items, a clear attempt to increase average order values and appeal to older, wealthier shoppers.

Yet all of this growth sits under a cloud of uncertainty. TikTok’s U.S. operations are being restructured into a new entity, TikTok USDS Joint Venture LLC, which will be majority owned by American investors including Oracle, Silver Lake and UAE-based MGX. 

ByteDance is expected to retain roughly 20% ownership, while U.S. partners take control of data security and oversight of the algorithm.

The deal must close by January 22, 2026, to comply with U.S. law. If it fails, TikTok faces a nationwide ban, a scenario that would put TikTok Shop’s U.S. vision at risk just as they begin to gain traction.

The deal, confirmed by officials on Tuesday, will see TikTok’s U.S. assets transferred to American ownership, easing long-standing concerns about security, tied to its Chinese parent company, ByteDance.

President Donald Trump, addressing reporters at the White House, said: “We have a deal on TikTok … We have a group of very big companies that want to buy it.” 

He made this statement just a day before the September 17 deadline that could have forced the app, used by 170 million Americans, to shut down. Hours later, the administration extended the deadline until December 16, buying ByteDance 90 more days to finalise the handover.

Under the structure taking shape, ByteDance will hold no more than 19.9% of the new U.S. entity, a level carefully set below the 20% regulatory threshold. The remaining 80% will rest with a consortium of investors that includes Susquehanna International Group (SIG), KKR, General Atlantic, Silver Lake, and new entrants like Andreessen Horowitz. Oracle is also expected to retain its cloud services role with TikTok.

The deal between TikTok and the United States (US) aligns with a model previously applied to the Nippon Steel, U.S. Steel agreement, which allowed Washington to insert a government-appointed board member into the American company.

Sources familiar with the matter say the new TikTok board will also be U.S.-dominated, with one seat designated by the federal government.

Treasury Secretary Scott Bessent told CNBC: “This deal wouldn’t be done without proper safeguards for U.S. national security. It seems as though we were also able to meet the Chinese interest.” He added that the commercial terms had largely been settled since March, but tariff disputes stalled Beijing’s approval.

Yet, some questions are still unresolved. ByteDance’s most prized asset, the recommendation algorithm, may remain under its control through a licensing arrangement, as China’s 2020 export laws classify such technology as sensitive intellectual property. 

Critics in Washington warn that leaving ByteDance with control of the algorithm could still allow Beijing indirect influence over U.S. users, sabotaging the purpose of the 2024 divestiture law passed under the Biden administration.

However, Trump has shown little appetite to enforce an immediate ban. His administration has extended the divestiture deadline four times, noting the risk of alienating TikTok’s massive user base and disrupting political engagement on the platform. Trump himself has 15 million followers on TikTok and has openly acknowledged the app’s role in his re-election bid.

A final confirmation of the framework is expected after a call between Trump and Chinese President Xi Jinping later this week. CNBC reports the agreement could close within 30 to 45 days if no last-minute changes emerge.

China’s state media has described the outcome as a “win-win,” emphasising mutual respect and cooperation. But on Capitol Hill, some lawmakers argue that repeated extensions affect the intent of the divestiture law. Others insist that a measured approach prevents unnecessary disruption for millions of Americans who rely on the app daily.

For now, TikTok remains online in the U.S., shielded by a fragile compromise shaped as much by politics as by national security.