TikTok Faces US Ban Deadline as Users Brace for Fallout

A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo
A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo
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TikTok Faces US Ban Deadline as Users Brace for Fallout

A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo
A social media influencer films a video for his new Xiaohongshu, also known as RedNote, after leaving TikTok, in Times Square in New York City, US, January 16, 2025. REUTERS/Brendan McDermid/File Photo

TikTok buzzed with nervous anticipation across the US on Saturday as a looming federal ban threatened to sever access to the Chinese-owned app that has captivated nearly half of all Americans, powered small businesses and shaped online culture.

The company said late Friday that it will go dark in the United States on Sunday unless President Joe Biden's administration provides assurances to companies like Apple and Google that they will not face enforcement actions when a ban takes effect.

The ban would be enacted under a law signed by President Joe Biden in April and mark the first US shutdown of a major social media app -- with TikTok boasting about 170 million domestic users and an estimated $20 billion in 2025 revenue.

The platform has until Sunday to cut ties with its China-based parent ByteDance or shut down its US operation to resolve concerns it posed a threat to national security.

Supreme Court justices upheld the ban on Friday in a unanimous decision and a White House statement suggested Biden would not take any action to save TikTok before the deadline.

Without a decision by Biden to formally invoke a 90-day delay in the deadline, companies providing services to TikTok or hosting the app could face legal liability. It is not clear if TikTok's business partners, including Apple, Alphabet's Google and Oracle, will continue doing business with it before Trump is inaugurated on Monday, according to Reuters.

Uncertainty over the app's future had sent users - mostly made up of younger people - scrambling to alternatives including China-based RedNote. Rivals Meta and Snap had also seen their shares rise this month ahead of the ban, as investors bet on an influx of users and ad dollars.

Marketing firms reliant on TikTok have rushed to prepare contingency plans this week in what one executive described as a "hair on fire" moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

There have been signs that TikTok could make a comeback under incoming US President Donald Trump, who wants to pursue a "political resolution" of the issue and had last month urged the Supreme Court to pause implementation of the ban.

Trump said on Friday the decision on the future of the TikTok app will be up to him, but he did not provide any detail about what steps he would take. Media reports have said that he was considering an executive order that would suspend the enforcement of the TikTok sale-or-ban law for 60 to 90 days.

TikTok CEO Shou Zi Chew plans to attend the US presidential inauguration on Jan. 20 and sit among high-profile guests invited by Trump, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok's US operations to billionaire and Trump ally Elon Musk, though the company has denied that.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the US.



US Supreme Court Upholds Law Banning TikTok If It’s Not Sold by Its Chinese Parent Company

A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)
A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)
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US Supreme Court Upholds Law Banning TikTok If It’s Not Sold by Its Chinese Parent Company

A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)
A person live streams to their TikTok followers as the high justices rule to uphold a ban on the video-sharing app TikTok in the TikTok vs. Merrick Garland case in Washington, DC, USA, 17 January 2025. (EPA)

The Supreme Court on Friday unanimously upheld the federal law banning TikTok beginning Sunday unless it's sold by its China-based parent company, holding that the risk to national security posed by its ties to China overcomes concerns about limiting speech by the app or its 170 million users in the United States.

A sale does not appear imminent and, although experts have said the app will not disappear from existing users' phones once the law takes effect on Jan. 19, new users won't be able to download it and updates won't be available. That will eventually render the app unworkable, the Justice Department has said in court filings.

The decision came against the backdrop of unusual political agitation by President-elect Donald Trump, who vowed that he could negotiate a solution and the administration of President Joe Biden, which has signaled it won't enforce the law beginning Sunday, his final full day in office.

Trump, mindful of TikTok’s popularity, and his own 14.7 million followers on the app, finds himself on the opposite side of the argument from prominent Senate Republicans who fault TikTok’s Chinese owner for not finding a buyer before now. Trump said in a Truth Social post shortly before the decision was issued that TikTok was among the topics in his conversation Friday with Chinese leader Xi Jinping.

It’s unclear what options are open to Trump once he is sworn in as president on Monday. The law allowed for a 90-day pause in the restrictions on the app if there had been progress toward a sale before it took effect. Solicitor General Elizabeth Prelogar, who defended the law at the Supreme Court for the Democratic Biden administration, told the justices last week that it's uncertain whether the prospect of a sale once the law is in effect could trigger a 90-day respite for TikTok.

“Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary,” the court said in an unsigned opinion, adding that the law “does not violate petitioners' First Amendment rights.”

Justices Sonia Sotomayor and Neil Gorsuch filed short separate opinions noting some reservations about the court's decision but going along with the outcome.

“Without doubt, the remedy Congress and the President chose here is dramatic,” Gorsuch wrote. Still, he said he was persuaded by the argument that China could get access to “vast troves of personal information about tens of millions of Americans.”

Some digital rights groups slammed the court’s ruling shortly after it was released.

“Today’s unprecedented decision upholding the TikTok ban harms the free expression of hundreds of millions of TikTok users in this country and around the world,” said Kate Ruane, a director at the Washington-based Center for Democracy & Technology, which has supported TikTok’s challenge to the federal law.

Content creators who opposed the law also worried about the effect on their business if TikTok shuts down. “I’m very, very concerned about what’s going to happen over the next couple weeks,” said Desiree Hill, owner of Crown’s Corner mechanic shop in Conyers, Georgia. “And very scared about the decrease that I’m going to have in reaching customers and worried I’m going to potentially lose my business in the next six months.”

At arguments, the justices were told by a lawyer for TikTok and ByteDance Ltd., the Chinese technology company that is its parent, how difficult it would be to consummate a deal, especially since Chinese law restricts the sale of the proprietary algorithm that has made the social media platform wildly successful.

The app allows users to watch hundreds of videos in about half an hour because some are only a few seconds long, according to a lawsuit filed last year by Kentucky complaining that TikTok is designed to be addictive and harms kids' mental health. Similar suits were filed by more than a dozen states. TikTok has called the claims inaccurate.

The dispute over TikTok's ties to China has come to embody the geopolitical competition between Washington and Beijing.

“ByteDance and its Chinese Communist masters had nine months to sell TikTok before the Sunday deadline,” Sen. Tom Cotton, R-Ark., wrote on X. “The very fact that Communist China refuses to permit its sale reveals exactly what TikTok is: a communist spy app. The Supreme Court correctly rejected TikTok’s lies and propaganda masquerading as legal arguments.”

The US has said it’s concerned about TikTok collecting vast swaths of user data, including sensitive information on viewing habits, that could fall into the hands of the Chinese government through coercion. Officials have also warned the algorithm that fuels what users see on the app is vulnerable to manipulation by Chinese authorities, who can use it to shape content on the platform in a way that’s difficult to detect.

TikTok points out the US has not presented evidence that China has attempted to manipulate content on its US platform or gather American user data through TikTok.

Bipartisan majorities in Congress passed legislation and Biden signed it into law in April. The law was the culmination of a yearslong saga in Washington over TikTok, which the government sees as a national security threat.

TikTok, which sued the government last year over the law, has long denied it could be used as a tool of Beijing. A three-judge panel made up of two Republican appointees and a Democratic appointee unanimously upheld the law in December, prompting TikTok’s quick appeal to the Supreme Court.

Without a sale to an approved buyer, the law bars app stores operated by Apple, Google and others from offering TikTok beginning on Sunday. Internet hosting services also will be prohibited from hosting TikTok.

ByteDance has said it won’t sell. But some investors have been eyeing it, including Trump’s former Treasury Secretary Steven Mnuchin and billionaire businessman Frank McCourt. McCourt’s Project Liberty initiative has said it and its unnamed partners have presented a proposal to ByteDance to acquire TikTok’s US assets. The consortium, which includes “Shark Tank” host Kevin O’Leary, did not disclose the financial terms of the offer.

McCourt, in a statement following the ruling, said his group was “ready to work with the company and President Trump to complete a deal.”

Prelogar told the justices last week that having the law take effect “might be just the jolt” ByteDance needs to reconsider its position.