(Reuters) – Nervous anticipation rippled across the U.S. on Saturday as TikTok users braced for a looming federal ban that could cut off access to the popular Chinese-owned app. Nearly half of all Americans have been captivated by TikTok, which has not only powered small businesses but also played a significant role in shaping online culture.
In a statement released late Friday, the company announced that it would cease operations in the United States on Sunday unless the Biden administration provided assurances to companies like Apple and Google regarding potential enforcement actions related to the ban. The ban, authorized under a law signed by President Joe Biden in April, would mark the first shutdown of a major social media app in the U.S. TikTok currently boasts around 170 million users in the country and is projected to generate approximately $20 billion in revenue by 2025.
With a deadline looming, TikTok has until Sunday to either sever ties with its Chinese parent company, ByteDance, or shut down its U.S. operations to address concerns about national security implications. The Supreme Court, in a unanimous decision on Friday, upheld the ban, and a White House statement indicated that President Biden was unlikely to intervene to save TikTok before the deadline.
If Biden does not officially invoke a 90-day delay in the ban, companies providing services to TikTok or hosting the app could face legal consequences. The future of TikTok’s business relationships with partners like Apple, Google, and Oracle remains uncertain, especially with the impending inauguration of President Trump on Monday.
In response to the uncertainty surrounding TikTok’s fate, users – many of whom are younger individuals – have started exploring alternative platforms like China-based RedNote. Competitors such as Meta and Snap have seen increases in their stock values this month as investors anticipate a potential influx of users and advertising revenue.
Marketing firms that heavily rely on TikTok have been hurrying to create contingency plans in preparation for potential disruptions. The industry is experiencing what one executive described as a “hair on fire” moment, following earlier beliefs that a solution would be found to keep TikTok operational.
There have been indications that TikTok might make a comeback under the incoming administration of President Donald Trump, who has expressed a desire to address the issue through a “political resolution.” Trump had previously urged the Supreme Court to delay the ban’s implementation, although his plans for the future of the app remain vague.
Reports suggest that Trump is considering an executive order that would temporarily suspend the enforcement of the law mandating the sale or ban of TikTok for a period of 60 to 90 days. TikTok’s CEO, Shou Zi Chew, is reportedly set to attend the U.S. presidential inauguration on January 20 as a guest among prominent figures invited by Trump.
Various parties, including former Los Angeles Dodgers owner Frank McCourt, have shown interest in acquiring TikTok, a rapidly growing business that analysts value at up to $50 billion. There have also been rumors of discussions between Beijing
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