TikTok goes dark as US ban takes effect
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The news: TikTok ceased operations for its about 170 million US users late Saturday ahead of a law requiring the app’s Chinese parent, ByteDance, to divest its US operations or face a ban.
The law, upheld by the US Supreme Court on Friday, enforces USD5,000-per-user fines for companies that continue hosting the app.
Apple and Google removed TikTok from app stores to avoid the fines. ByteDance’s other apps, including video editing app CapCut and lifestyle social app Lemon8, were also unavailable in the US over the weekend, Reuters reported.
The context: The law, signed in April 2024, reflects bipartisan concerns over national security risks and potential misuse of data by China. Beijing has argued the law is an unfair use of state power.
President-elect Donald Trump, a previous TikTok critic, on Saturday told NBC he would “most likely” issue a 90-day reprieve after taking office on Monday (Tuesday AEDT). The president-elect shifted his stance after TikTok helped him win young voters during the election.
In a notification to users, TikTok described itself as “fortunate” to have Trump’s support for a solution.
The blackout disrupted businesses, creators and social media entrepreneurs, some of whom rely on TikTok for income and customer engagement, even as some migrated to platforms like Instagram, Meta and RedNote.
Meanwhile, on Saturday, Perplexity AI, a US search engine startup, submitted a proposal to ByteDance to merge with TikTok’s US operations, according to media reports that cited unnamed sources.
The plan involves creating a new entity by combining TikTok US with other partners, potentially addressing the divestiture requirements under the law.
Beijing had previously indicated it would oppose any sale of the business, which analysts said could be worth as much as USD50 billion. But according to reports, officials have since discussed options, including allowing a trusted non-Chinese party such as Elon Musk to invest in or take control of TikTok’s US operations.
ByteDance is 60% owned by institutional investors, including BlackRock and General Atlantic.
What they said: “A law banning TikTok has been enacted in the US,” TikTok says in a notification on the platform to US users.
“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!”
