What's Happening?
Thousands of TikTok users reported issues with the app on Sunday morning, coinciding with a major snow day across the United States. According to DownDetector, outage reports peaked at over 35,000 overnight, though this number decreased to 4,600 by early afternoon. Users experienced problems such as videos failing to load and showing zero views. TikTok has not yet commented on the cause of the outage or the number of users affected. This disruption comes shortly after TikTok finalized a deal to establish a new American entity, a move aimed at avoiding a potential ban in the U.S. The new venture involves major investors like Oracle, Silver Lake, and MGX, with Adam Presser, former head of operations and trust and safety at TikTok, appointed as CEO.
The board of directors will be majority-American, including TikTok's CEO Shou Chew.
Why It's Important?
The outage highlights the challenges TikTok faces as it navigates regulatory pressures in the U.S. The formation of a new American entity is a strategic move to address national security concerns and avoid a ban that has been under discussion for years. This development is significant for TikTok's millions of American users and its business operations in the U.S. The involvement of major investors like Oracle and Silver Lake underscores the importance of maintaining TikTok's presence in the American market. The outage, however, raises questions about the app's reliability and could impact user trust and engagement, which are crucial for its continued success and growth.
What's Next?
TikTok will likely need to address the cause of the outage and reassure users about the app's stability. The new American entity will have to navigate regulatory scrutiny and demonstrate compliance with U.S. laws to maintain its operations. The leadership of Adam Presser and the majority-American board will be pivotal in steering the company through these challenges. Stakeholders, including investors and users, will be closely watching how TikTok manages these transitions and any further technical issues.
