TikTok usage recovers after brief dip following ownership change

TikTok has largely recovered from a dip in active users in the United States following its recent ownership change. According to estimates from digital market intelligence firm Similarweb, the video-sharing application saw its usage dip to a range of 86-88 million daily active users in the U.S. immediately after the transition. This decline represents a drop from a typical average of 92 million daily active users. However, the platform has since rebounded to more than 90 million daily active users, indicating that the initial contraction was temporary.

The brief contraction in TikTok’s U.S. user base provided a short-lived surge for alternative video-sharing platforms. UpScrolled, a competing video app, topped 138,500 daily active users at its peak on January 28, though its usage has since dropped back down to 68,000. Similarly, rival app Skylight Social hit 81,200 daily active users before dropping to 56,300 daily active users. Despite the subsequent decline in active engagement, Skylight Social reported that its total user sign-ups had seen an increase to 380,000 as of late January.

The temporary decline in usage was driven by user fears regarding TikTok’s updated privacy policy and concurrent technical outages, rather than the ownership change itself. Users reacted to an updated privacy policy that allowed the tracking of precise GPS locations—which may have been related to tests of a “Nearby” feed to show videos from local creators—triggering a “user backlash.” Upon reviewing the terms, some users also discovered “disturbing language” in the privacy policy. This language was included to comply with the California Consumer Privacy Act (CCPA), a state statute intended to enhance privacy rights and consumer protection by requiring businesses to disclose if they collect certain sensitive data.

In addition, TikTok experienced a data center outage that disrupted core features. Many users interpreted these technical glitches as the company “censoring their content,” which prompted them to seek alternative platforms. The company announced on Sunday evening that the data center outage was resolved, attributing the technical failure to a winter-storm-driven power outage. As technical issues were resolved and users adjusted to the new terms, engagement stabilized, though the platform remains below its 2025 peak, when usage peaked at 100 million daily active users from July to October 2025.

Why it matters

TikTok’s usage dip, driven by privacy concerns and technical outages, highlights the volatility of user loyalty during ownership transitions and the potential for rival apps to capture temporary market share.