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Before a federal ban on the Chinese-owned short-video app could take effect, TikTok went dark in the US on Saturday, cutting off access to a platform that had captivated nearly half of the US population, supported local businesses, and shaped internet culture.
On the same day, President-elect Donald Trump indicated he would “most likely” grant TikTok a 90-day extension to avoid a potential ban after taking office on Monday.
In the midst of the anxious buildup to Sunday’s shutdown, the app’s 170 million American users got a notice that read: “A law banning TikTok has been enacted in the US Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned.”
Economic and Cultural Impact of Tiktok’s Ban
Millions of Americans rely on the app for economic and cultural reasons, and even if the suspension is only temporary, it will have far-reaching effects on U.S.-China relations, U.S. domestic politics, the social media marketplace, and the app itself.
America has a perfect record when it comes to banning popular social networking sites. As a result of the bill’s overwhelming approval in Congress, the newly inaugurated Trump administration will have broad powers to prohibit or pursue the sale of more apps controlled by Chinese companies.
As of late Saturday, all of ByteDance’s apps including Lemon8, a lifestyle social app, and CapCut, an app for video editing were offline and not available in the United States.
“The 90-day extension is something that will be most likely done, because it’s appropriate,” Trump told NBC. “If I decide to do that, I’ll probably announce it on Monday.”
It was unclear whether any users in the United States could still access the app, but many users reported that it stopped operating altogether, and anyone trying to access it through a web app got the same message: TikTok was down.
TikTok, the popular video-sharing app that has influenced internet culture, mobilised small businesses, and enchanted nearly half of America’s population, threatened on Friday to shut down in the US on Sunday unless tech giants like Apple (AAPL.O) and Google (GOOGL.O) are guaranteed immunity from enforcement measures in the event of a ban.
According to the law passed last year and affirmed unanimously by the Supreme Court on Friday, the platform had until Sunday to cut relations with its China-based parent or close its U.S. operation in order to address fears that it constitutes a threat to national security.
The White House under Biden emphasized once again on Saturday that the responsibility for action lies with the new administration.
“We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday,” press secretary Karine Jean-Pierre said in a statement.
Regarding the White House statement, TikTok did not react to a request for comment.
China’s Response to the Ban
The Chinese embassy in Washington made the accusation that the U.S. was using its unfair state power to censor TikTok on Friday. “China will take all necessary measures to resolutely safeguard its legitimate rights and interests,” according to a representative.
Users, particularly younger ones, were rushing to find alternatives, such as RedNote, which is located in China, due to the app’s future instability. In anticipation of the ban, investors have been betting on an increase in users and advertising revenue, which has led to a rise in the share prices of rival companies Meta (META.O) and Snap (SNAP.N).
A user commented, “This is my new home now” in a RedNote post that was labelled with “tiktokrefugee” and “sad.”
X, formerly known as Twitter, saw an influx of users shortly following TikTok’s US suspension.
“I didn’t really anticipate TikTok being shut down. I miss the friends I made there and now I’m unhappy. Thanks for the update, RavenclawJedi! I’m hoping everything is back to normal in a few days.
Virtual private network (VPN) provider NordVPN claimed it was “experiencing temporary technical difficulties.” The company’s servers are located all over the globe, so customers may access the internet anonymously.
The number of web searches for “VPN” increased in the minutes following the U.S. consumers’ inability to access TikTok, as seen by Google Trends.
Concerns for TikTok Shop Purchases
Instagram users worried about whether they would still get the products they purchased on TikTok Shop, the shopping feature of the video platform.
After months of hearing that a solution will come to keep the app running, marketing firms that rely on TikTok have hurried to develop backup plans in what one CEO called a “hair on fire” moment.
It appears like TikTok may receive a second wind under Trump’s government. He has expressed his desire for a “political resolution” to the problem and, just last month, asked the Supreme Court to put the ban on hold.
A source informed Techjuice that TikTok CEO Shou Zi Chew intends to join Trump at a rally on Sunday and attend the US presidential inauguration on Saturday.
Investors, including Frank McCourt, a former owner of the Los Angeles Dodgers, and others have shown interest in the rapidly expanding company, which some have estimated at $50 billion. Despite the company’s denials, media outlets have reported that Elon Musk, a billionaire and Trump supporter, has been in talks with Beijing to purchase TikTok’s U.S. business.
According to a source familiar with the company’s plans, Perplexity AI, a search engine startup based in the US, made an offer to ByteDance on Saturday to merge with TikTok U.S. This source also mentioned that Perplexity and TikTok U.S. would be merging into a new company with additional partners.
Privately held BlackRock and General Atlantic are among the institutional investors that control around 60% of ByteDance, with the founders and employees each owning 20%. Across the United States, it employs over 7,000 people.
