TikTok, the popular social media platform with over 170 million American users, ceased operations late Saturday in the United States. This unprecedented move follows the enactment of a law banning the app on national security grounds. The legislation, passed overwhelmingly by Congress, grants the incoming Trump administration extensive powers to ban or negotiate the sale of other Chinese-owned applications. President-elect Donald Trump has announced his intention to restore TikTok access via executive order once he assumes office on Monday, under the condition that U.S. investors hold at least a 50% ownership stake.
The decision to ban TikTok marks the first time the U.S. has prohibited a major social media platform. Concerns over data privacy and potential misuse of American users' information by TikTok's Chinese parent company, ByteDance, have fueled these actions. U.S. officials have long warned of such risks. Meanwhile, the Chinese Embassy in Washington has accused the U.S. of deploying unfair state power to suppress TikTok, promising that "China will take all necessary measures to resolutely safeguard its legitimate rights and interests."
The app's shutdown has left more than 7,000 TikTok employees in the U.S. in uncertainty, alongside millions of users who expressed their frustration and disappointment online. One user posted on RedNote, saying, "I didn't really think that they would cut off TikTok. Now I'm sad and I miss the friends I made there. Hoping it all comes back in just a few days." Another user simply noted, "tiktokrefugee" and "sad."
President-elect Donald Trump is optimistic about TikTok's future in the U.S., stating:
"I would like the United States to have a 50% ownership position in a joint venture. By doing this, we save TikTok, keep it in good hands and allow it to stay up," – Donald Trump
Potential suitors for TikTok's U.S. operations have already emerged. Former Los Angeles Dodgers owner Frank McCourt and U.S. search engine startup Perplexity AI have expressed interest in acquiring stakes in the company. Perplexity AI submitted a bid to ByteDance on Saturday, proposing a merger with TikTok's U.S. operations, as analysts estimate the app could be valued as high as $50 billion.
Other ByteDance-owned apps, such as CapCut and Lemon8, also went offline and became unavailable in U.S. app stores following the ban. The sudden loss of access prompted a spike in web searches for "VPN," according to Google Trends data, indicating that many users are seeking ways to bypass the restrictions.
The anticipated ban has had financial implications as well, with rivals Meta and Snap seeing an increase in their share prices this month. Investors are betting on these platforms gaining users and advertising revenue amidst TikTok's absence.
In an effort to mend relations and seek clarity on the future, TikTok CEO Shou Zi Chew plans to attend the U.S. presidential inauguration and join President-elect Trump at a rally on Sunday. The presence of TikTok's leadership at these events underscores the significance of resolving the platform's operational status in the U.S.
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