TikTok Faces Uncertain Future as U.S. Ban Looms

A law prohibiting mobile app stores and internet hosting services from distributing TikTok to U.S. users will take effect on Sunday, heightening uncertainty over the popular app's future. The legislation, passed by Congress and signed by President Joe Biden last year, mandates that TikTok's China-based parent company divest its U.S. operations to an approved buyer…

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TikTok Faces Uncertain Future as U.S. Ban Looms

A law prohibiting mobile app stores and internet hosting services from distributing TikTok to U.S. users will take effect on Sunday, heightening uncertainty over the popular app's future. The legislation, passed by Congress and signed by President Joe Biden last year, mandates that TikTok's China-based parent company divest its U.S. operations to an approved buyer within nine months. With the deadline looming, the Biden administration has decided to leave the law's implementation to President-elect Donald Trump, as his inauguration occurs the day after the ban takes effect.

The White House has clarified that it will not enforce the law or impose fines on app store operators. White House Press Secretary Karine Jean-Pierre and Deputy Attorney General Lisa Monaco emphasized that the Biden administration would not take action against those distributing TikTok. In response, TikTok has requested a "definitive statement" from the current administration to ensure compliance. Without such assurances, TikTok warned it "will be forced to go dark."

President-elect Donald Trump indicated he "most likely" would grant TikTok a 90-day extension to finalize a deal and avoid the impending ban. He noted that he had not made a final decision but was considering offering a reprieve once inaugurated on Monday. Trump stated:

"I think that would be, certainly, an option that we look at."
"We have to look at it carefully. It’s a very big situation."
"If I decide to do that, I’ll probably announce it on Monday." – Donald Trump

Neither Apple, Google, nor Oracle, which hosts TikTok's data on its servers, has responded to inquiries regarding their plans for Sunday. Trump's potential decision could provide a temporary solution, as he considers the 90-day extension "appropriate" and "most likely" to occur.

The looming deadline places significant pressure on TikTok and its stakeholders, as they navigate the complex geopolitical landscape surrounding the app's operations in the United States. The White House dismissed TikTok's statement of potential shutdown as "a stunt."

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