TikTok blames data outages for U.S. app issues, denies censorship

CNBC | January 27, 2026 at 10:15 AM UTC
Bearish 82% Confidence Majority Agreement
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Key Points

  • Under the new ownership structure, ByteDance retains 19.9% ownership while U.S. and global investors hold 80.1%, with Oracle, Silver Lake, and MGX each holding 15% stakes
  • CNBC confirmed that messages containing 'Epstein' triggered error messages claiming community guideline violations, though TikTok says it does not prohibit the name and is investigating
  • California Gov. Newsom's office claims to have independently confirmed instances of suppressed content critical of President Trump and has called on the state Department of Justice to investigate potential law violations

AI Summary

TikTok Blames Data Outages for U.S. App Issues, Denies Censorship

TikTok attributes recent app glitches and content disruptions to a power outage at one of its data centers, refuting widespread allegations of political censorship. The issues emerged after the platform began operating under a newly-formed U.S.-led joint venture following months of political pressure over its Chinese ownership.

Key Issues:

Users have reported multiple problems, including the inability to send direct messages containing the word "Epstein" (independently confirmed by CNBC), alongside broader claims of political content suppression. CNBC could not verify wider censorship allegations, though viral complaints have proliferated across social media.

Political Response:

California Governor Gavin Newsom announced a review of alleged content suppression critical of President Trump, with his office claiming to have "independently confirmed instances" of such censorship. He has called on the California Department of Justice to investigate potential violations of state law, though no supporting evidence was provided.

Company Statement:

TikTok maintains the platform does not prohibit sharing "Epstein" in messages and is investigating user-reported problems. The company attributes technical issues to a "cascading systems failure" from the data center outage, warning users may experience bugs, slower load times, and temporary display of "0" views or likes.

Ownership Structure:

Last Thursday, TikTok announced a joint venture allowing continued U.S. operations. ByteDance retains 19.9% ownership, while U.S. and global investors hold 80.1%. Key stakeholders include Oracle, Silver Lake, and MGX, each with 15% stakes. This restructuring followed Supreme Court upholding of a law requiring divestment over national security concerns, with Trump executive orders enabling ongoing negotiations.

The controversy occurs amid heightened political tensions surrounding ICE enforcement operations in Minneapolis.

Model Analysis Breakdown

Model Sentiment Confidence
GPT-5-mini Neutral 80%
Claude 4.5 Haiku Bearish 78%
Gemini 2.5 Flash Bearish 90%
Consensus Bearish 82%