Negosyante News

December 26, 2024 9:11 pm

Trump’s Support for TikTok Fuels Speculation Over App’s US Fate

President-elect Donald Trump’s vocal support for TikTok has reignited debates about the app’s future in the United States as a looming ban deadline approaches. The platform, which Trump credits for helping him connect with younger voters, faces potential removal from US app stores unless its parent company, ByteDance, divests its stake by January 19.

“We got to keep this sucker around for a little while,” Trump told supporters after a meeting with TikTok CEO Shou Zi Chew in Florida.

The Ban and Its Challenges

The ban stems from bipartisan concerns over national security and data privacy, with lawmakers wary of potential Chinese government influence over ByteDance. Congress passed a law earlier this year mandating the ban unless ByteDance complies, and TikTok has since appealed to the Supreme Court, arguing the legislation violates First Amendment rights.

The Supreme Court, dominated by Trump-aligned justices, will hear the case on January 10, just days before the ban deadline. Meanwhile, Trump could extend the deadline by 90 days to facilitate a solution.

Potential Resolutions

Several paths to resolve TikTok’s US operations are under consideration:

  1. ByteDance Sale: A sale to a non-Chinese buyer could satisfy security concerns, but ByteDance has resisted this option.
  2. National Security Compliance: A Trump-led Department of Justice might determine ByteDance has addressed security risks, though critics could frame this as appeasing Beijing.
  3. Supreme Court Ruling: If the court sides with TikTok, the ban could be overturned.

The “Deal of the Century”?

Speculation surrounds potential buyers for TikTok’s US operations. Former Treasury Secretary Steve Mnuchin, backed by SoftBank and Abu Dhabi’s Mubadala fund, has shown interest. Elon Musk, who has discussed turning his platform X into a TikTok-like app, could also play a role.

However, any deal would require Beijing’s approval amid tense US-China relations, adding further complexity.

Historical Context

This isn’t the first time TikTok’s US presence has been in question. In 2020, Trump also pushed ByteDance to divest its US operations. Although Oracle and Walmart reached a preliminary agreement for ownership stakes, the deal collapsed due to legal hurdles and a change in administration.

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