Negosyante News

January 19, 2025 2:57 am

TikTok Faces US Shutdown Amid Supreme Court Ruling and Ownership Deadline

TikTok has warned that it will go offline in the United States on Sunday, January 19, unless the Biden administration provides assurances to major service providers like Apple and Google that they will not face penalties for supporting the platform.

This comes after the Supreme Court upheld a law banning TikTok in the US on national security grounds unless its Chinese parent company, ByteDance, sells the app. The law, passed last year with overwhelming bipartisan support, prohibits the app’s operation under Chinese ownership.

TikTok’s Future in Limbo

The platform, which boasts 170 million US users, is at risk of being banned just as former President Donald Trump prepares to return to office on Monday. Trump has pledged to review the situation and potentially intervene to keep TikTok operational, stating on social media:
“Stay tuned!”

TikTok CEO Shou Zi Chew plans to attend Trump’s inauguration and is reportedly in talks with the former president regarding the platform’s future.

Concerns Over National Security

The US government cites concerns that TikTok could be used by China for:

  • Collecting sensitive user data.
  • Espionage or harassment.
  • Shaping global narratives through its vast user base.

Attorney General Merrick Garland lauded the Supreme Court’s decision, stating that it protects US national security by preventing foreign adversaries from accessing Americans’ sensitive information.

ByteDance’s Inaction

Despite the looming deadline, ByteDance has made minimal progress toward divesting TikTok. While the Biden administration insists the app could continue if separated from Chinese ownership, Biden has declined to delay the ban, leaving implementation to the incoming Trump administration.

User and Industry Reactions

TikTok users and creators are scrambling to adapt:

  • Some have expressed disbelief and frustration, like Lourd Asprec, a creator with 16.3 million followers, who quipped, “I don’t even care about China stealing my data. I’ll go to China myself and give them my data.”
  • Others are migrating to alternative platforms, including Chinese-owned apps like RedNote, despite language barriers.

Tech giants Apple, Google, and Oracle face potential fines if they continue supporting TikTok post-ban. Apple and Oracle have not commented, while Google has remained silent on its next steps.

What’s Next?

With Trump’s return imminent, TikTok’s fate hinges on his decisions:

  1. Invoke emergency powers to preserve TikTok under national security safeguards.
  2. Encourage a buyer, though ByteDance’s valuation remains unclear.

Notable bidder: Frank McCourt, ex-owner of the LA Dodgers, values TikTok at $20 billion without its algorithm.

Analysts believe Trump has leverage to negotiate terms ensuring TikTok’s continued operation while addressing security concerns.

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