TikTok recovered from a brief dip in U.S. daily active users after a group of American investors assumed control of its U.S. operations. The decline to 86-88 million users from a typical 92 million stemmed from privacy policy concerns and a data center outage, benefiting rivals UpScrolled and Skylight Social.
Digital market intelligence firm Similarweb estimated TikTok’s U.S. daily active users fell into the 86-88 million range immediately following the ownership change. This marked a departure from the app’s standard average of 92 million daily active users. The platform quickly rebounded, surpassing 90 million daily active users, as evidenced by Similarweb’s data. This recovery indicated that a substantial portion of users who temporarily shifted away returned to the app.
During TikTok’s usage dip, competing video-sharing applications UpScrolled and Skylight Social experienced rapid growth in user adoption. These apps, though representing only a small fraction of TikTok’s scale, attracted users seeking alternatives. UpScrolled reached its peak of 138,500 daily active users on January 28, according to Similarweb estimates. Following that high, its daily active users declined to 68,000.
Skylight Social similarly saw an uptick, peaking at 81,200 daily active users per Similarweb data before dropping to 56,300 daily active users. The company reported to TechCrunch that Skylight Social achieved 380,000 user sign-ups by late January. These gains occurred as TikTok users experimented with the newcomers amid the platform’s challenges.
The decline in TikTok usage did not result directly from the ownership transition itself but from user reactions to associated changes. Concerns arose over an updated privacy policy that permitted the app to track users’ precise GPS location. TikTok introduced this feature potentially in connection with tests of a “Nearby” feed, designed to display videos from local creators. The timing, coinciding with the ownership shift, sparked backlash regarding privacy.
Users reviewing the revised policy also encountered language stating TikTok may collect “immigration status” alongside other personal data. This disclosure complied with the California Consumer Privacy Act (CCPA), which mandates businesses to notify consumers about collection of specific sensitive information. TikTok included it because content shared in videos on the platform technically enters its data pool, necessitating the CCPA-required mention.
Compounding these issues, TikTok faced a multi-day data center outage that impaired core functions. The outage stemmed from a power failure caused by a winter storm. It disrupted search capabilities, likes, comments, video playback, the recommendation algorithm, and in-app chat features. Videos experienced glitches, further frustrating users.
Many users interpreted these technical failures as deliberate censorship, particularly in light of the ownership change and privacy updates. This perception drove them to explore alternative apps like UpScrolled and Skylight Social. TikTok addressed the issue publicly, announcing on Sunday evening that the data center outage had been resolved, attributing it to the storm-related power disruption.
Similarweb’s data reflects that users began returning to TikTok once they accepted the new terms and conditions and the outage-related problems were fixed. The platform stabilized above 90 million daily active users in the U.S.
Similarweb notes broader trends in TikTok’s performance. Usage peaked at 100 million daily active users from July to October 2025. In the latter part of 2025, daily active users have trended downward to the current 90-plus million level.
