TikTok recovers from dip in usage that benefited rival apps following U.S. ownership change

Following a recent shift in ownership, TikTok has successfully navigated a temporary dip in its active user base. This change saw a consortium of American investors assume control of the app's U.S. operations, leading to a brief decline in daily active users. During this period, rival platforms such as UpScrolled and Skylight Social capitalized on the situation, attracting former TikTok users seeking alternatives. Digital market intelligence firm Similarweb reported that TikTok's daily active users in the U.S. fell to between 86 and 88 million right after the ownership transition, down from an average of around 92 million. However, the platform has rebounded, now boasting over 90 million daily users, suggesting that many who ventured away have returned. Meanwhile, UpScrolled, although significantly smaller than TikTok, experienced a surge, peaking at 138,500 daily users on January 28, before declining to 68,000. Skylight Social also saw its numbers rise, reaching 81,200 daily users, yet it has since dropped to 56,300. The user sign-up rate for Skylight Social peaked at 380,000 in late January, as reported to TechCrunch. The initial decline in TikTok's user engagement was not solely attributed to the ownership shift but was influenced by apprehensions regarding the platform's updated privacy policy. Users expressed concerns over the app's new permissions, which included tracking precise GPS locations. The introduction of this policy coincided with the ownership change, leading to a backlash amid fears about how it would affect their experience. In a closer look at the privacy policy, users were alarmed to find references to sensitive information, including the potential collection of their immigration status. These concerns stemmed from compliance with the California Consumer Privacy Act (CCPA), which mandates that companies disclose the collection of certain personal data. Additionally, TikTok faced an unexpected multi-day data center outage that hampered functionality, affecting features such as search, likes, and comments. Users interpreted these glitches as censorship, prompting them to explore other platforms. TikTok attributed the outage to a power failure caused by winter weather. As the company resolved these issues and users adjusted to the new policies, data from Similarweb indicated a return to the platform. Nonetheless, analysts note a gradual decline in TikTok usage, which peaked at 100 million daily users between July and October 2025, compared to the current levels of over 90 million.