TikTok back online in US as Trump signals reprieve
Incoming president suggests more time to find a buyer, says US government could take a 50% stake
TikTok has brought its services back online after president-elect Donald Trump announced that that he would extend the deadline for the company to find a US purchaser.
The social media company briefly ceased operations for its 170 million American users following the enactment of a US law targeting the Chinese-owned app on national security grounds.
After the Supreme Court unanimously voted to allow a TikTok ban to proceed, parent ByteDance shut down access in the US late Saturday night.
However, Trump announced that he would sign an executive order to extend the deadline for ByteDance to find a US purchaser for TikTok.
Trump’s reprieve
Trump, who takes office today, Monday 20th January, stated last week that he would “most likely” grant TikTok a 90-day extension to avoid the ban. On Sunday, he confirmed he would sign an executive order to this effect, and that app stores would not be penalised for allowing access to the app.
The outgoing Biden administration deferred the implementation of the ban, leaving it to Trump’s incoming administration. White House press secretary Karine Jean-Pierre dismissed TikTok’s warnings of a planned shutdown as “a stunt,” advising the company to address its concerns with the next administration.
The initial move to ban TikTok on national security grounds came during the first Trump administration, but Trump later backed away from this decision after a meeting with Republican party donor, Jeff Yass, who is heavily invested in ByteDance.
The stay of execution has not pleased all of Trump’s Republican colleagues. Senators Tom Cotton and Pete Ricketts said in a joint statement: "Now that the law has taken effect, there is no legal basis for any kind of 'extension' of its effective date. For TikTok to come back online in the future, ByteDance must agree to a sale that satisfies the law's qualified-divestiture requirements by severing all ties between TikTok and Communist China."
Shutdown impacts US tech landscape
ByteDance’s apps, including CapCut, Lemon8, and Marvel Snap, were also removed from US app stores on 19th January. Apple stated: “Pursuant to the Protecting Americans from Foreign Adversary Controlled Applications Act, apps developed by ByteDance and its subsidiaries will no longer be available for download or updates on the App Store for users in the United States.”
Potential buyouts and bidders
Trump said he "would like the United States to have a 50% ownership position in a joint venture," although how that might work is not clear.
Perplexity AI has emerged as a surprising suitor for TikTok’s US operations. The company reportedly proposed a merger allowing ByteDance investors to retain equity. Perplexity CEO Aravind Srinivas aims to integrate TikTok’s video capabilities into its AI search engine.
Media speculation also suggests interest from Elon Musk, although ByteDance denied reports of discussions with the billionaire.
UK ban on the horizon?
Amid TikTok’s US woes, concerns are mounting about the app’s fate in the UK. A government official hinted that the UK might follow suit if the US bans TikTok, citing similar data privacy and national security concerns.
TikTok’s threatened shutdown has had ripple effects, from impacting influencers’ livelihoods to boosting rivals like Meta and Snap. NordVPN reported surges in demand for its services, while users flocked to alternatives like RedNote.
This is the first time a major social media platform has faced an outright ban in the US, signalling a shift in how governments regulate foreign tech companies. As global attention turns to Trump’s next steps, TikTok’s future and the broader implications for tech and geopolitics, hang in the balance.