TikTok faces deadline for U.S. ban as users end up falling out with Reuters
(Reuters) – Anxiety gripped TikTok across the United States on Saturday, as a looming federal ban on the Chinese-owned app could derail an app that has captivated all Americans, small businesses and shaped online culture.
Late Friday, the company said it was dark on Sunday unless President Joe Biden’s administration gives assurances to companies like Apple (NASDAQ:) and Google that they will not face enforcement action when the ban goes into effect.
The White House dismissed TikTok’s comments as a show, repeating on Saturday that the Trump administration would take action, raising the possibility of a shutdown on Sunday.
“We see no reason for TikTok or any other companies to take action in the next few days before the Trump administration takes office on Monday,” press secretary Karin Jean-Pierre said in a statement. The next administration.
TikTok did not immediately respond to a request for comment on the White House statement.
The ban comes under a law signed by Biden in April and marks the first time a major social media app has been shut down in the US. TikTok has 170 million domestic users and an estimated revenue of $20 billion by 2025.
The forum has until Sunday to cut ties with its China-based parent, ByteDance, or shut down U.S. activities to address national security concerns.
Supreme Court justices unanimously upheld the ban on Friday, and a White House statement indicated that Biden would not take any action to save TikTok before the deadline.
Without Biden’s decision to officially call for a 90-day delay by the deadline, the companies that provide services to TikTok or the companies that host the app could face legal liability. It’s unclear whether TikTok’s business partners, including Apple, Alphabet (NASDAQ: ) Google and Oracle (NYSE: ), will continue to work with Trump ahead of Trump’s inauguration on Monday.
Users move to the option
Uncertainty about the app’s future has sent users – mostly young people – looking to alternatives, including China-based RedNote. Rivals Meta (NASDAQ: ) and Snap also saw their shares rise ahead of the ban this month, as investors bet on user traffic and ad dollars.
Marketing firms that depend on TikTok rushed to prepare contingency plans this week after months of conventional wisdom that an executive said was “hair on fire” for a solution to keep the app afloat.
There have been signs of TikTok’s possible comeback, with incoming US President Donald Trump seeking to pursue a “political solution” to the problem, and last month urged the Supreme Court to temporarily suspend enforcement of the ban.
Trump said on Friday that the decision on the future of the TikTok app will be up to him, but gave no details on what steps he would take. Media reports said he was considering an executive order that would suspend the sale or ban of TikTok for 60 to 90 days.
TikTok CEO Xu Zichew plans to attend Monday’s US presidential inauguration and sit among the famous guests invited by Trump, a source told Reuters.
Analysts, including former Los Angeles Dodgers owner Frank McCourt, have expressed interest in the fast-growing business, which they estimate could be worth as much as $50 billion. Media reports say Beijing is in talks to sell TikTok’s US operations to billionaire and Trump ally Elon Musk, although the company has denied this.
Privately held ByteDance is about 60% owned by institutional investors such as BlackRock (NYSE: ) and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the US