TikTok is poised to shut down its U.S. operations on Sunday, when a federal ban is set to go into effect, unless there is a last-minute reprieve. The ban, enforced by a law signed in April, will prevent new TikTok downloads from the Apple and Google app stores if its Chinese parent company, ByteDance, fails to divest the platform. While users who have already downloaded the app could continue using it, U.S. companies will be barred from providing services to distribute, maintain, or update the app, effectively disrupting its operations.
Trump May Delay Enforcement of Ban
President-elect Donald Trump is considering an executive order to delay the enforcement of the ban for 60 to 90 days, according to sources familiar with the matter. According to The Washington Post, he plans to use these months to negotiate a political way out. The newspaper never mentioned how that will work legally. President Trump’s national security advisor, Mike Waltz, speaking on Fox News said, “TikTok itself is an amazing platform,” and added that while the app will be saved, information about users will be “protected.”
Biden Position on the Ban
According to a White House official, President Joe Biden has no intention of interfering to stop the ban if the Supreme Court fails to act. The official said that Biden cannot intervene unless ByteDance comes up with a believable plan for divesting TikTok. Meanwhile, Senator Ed Markey attempted to extend the deadline for divestiture by 270 days but was blocked by Republican Senator Tom Cotton.
TikTok’s Shutdown Plans
For ban, TikTok’s strategy is set to show an alert message where when the user tried to open an app, directs to a page containing information over the ban and will also permit downloading of all data. During the Supreme Court hearing, lawyer Noel Francisco made it clear on behalf of the company that they “go dark,” meaning would effectively shut their platform. The company is doing this to protect service providers from legal liability and to allow for a faster return to service in case Trump decides to reverse the ban.
Global Impact of U.S. Shutdown
The shutdown could affect the services available in other countries as many of TikTok’s service providers are based in the U.S. In a court filing, the company said the prohibitions would likely make the app unusable as data centers are unlikely to be able to store TikTok’s content and data. According to TikTok, an order was necessary “to avoid interruption of services for tens of millions of TikTok users outside the United States.”
TikTok and ByteDance have asked the court to stay the implementation of the law. They argue that it infringes on First Amendment protections against governmental restrictions on free speech. The company has estimated that a protracted ban will result in a drastic decline in its user base, with one-third of its 170 million American users likely to stop accessing the platform if the ban lasts for a month.
ByteDance is a privately-owned firm, with institutional investors such as BlackRock and General Atlantic holding 60% of the company’s shares, while its founders and staff hold 20% each. The company has more than 7,000 employees in the United States. President Biden signed the law requesting ByteDance to sell its U.S. assets before January 19 or face the nationwide ban. While the Supreme Court appears likely to allow the law to stand, Trump and lawmakers are clamoring for an extension of the deadline for divestiture.
This legal fight continues to squeeze TikTok, with the future of its U.S. operations hanging in the balance.
