BSS
  15 Jan 2025, 08:42
Update : 15 Jan 2025, 08:46

From ban to buyout: What next for TikTok in the US? 

WASHINGTON, Jan 15, 2025 (BSS/AFP) - TikTok faces an imminent shutdown in 
the United States after Congress passed a law last year forcing its Chinese 
owner ByteDance to either sell the platform or close it by Sunday.

The US Supreme Court is expected to rule this week on TikTok's challenge to 
the law.

Following a hearing last Friday, expectations are high that the law will 
stand.

Here is a review of what could happen next for TikTok in the United States.

- App store ban -

Under a ban, the US government would first direct Apple and Google to remove 
TikTok from their app stores, preventing new downloads as early as Sunday, a 
day before President-elect Donald Trump takes office.

However, the app would remain on the phones of the existing 170 million US 
users unless TikTok directly blocks their access.

Although TikTok lawyer Noel Francisco stated the site would "go dark" on 
Sunday if the justices fail to block the ban, many observers doubt ByteDance 
would unilaterally hit the off switch for American users.

TikTok indicated as much in a memo to staff, cited in the Verge on Tuesday.

"Our offices will remain open" regardless of what happens on January 19th and 
employees will keep their jobs.

"The bill is not written in a way that impacts the entities through which you 
are employed, only the US user experience," the memo said.

- Workarounds -

But even if TikTok keeps its app accessible, US users would stop receiving 
security and software updates, leading to gradual deterioration in quality 
and increased vulnerabilities.

As a workaround, users might turn to VPNs (virtual private networks) to mask 
their location by routing through countries where TikTok remains available.

Another possibility is that TikTok could update from non-US servers through 
partnerships with foreign, non-Chinese companies -- though this would 
constitute direct defiance of US authorities and likely intensify scrutiny of 
ByteDance's US operations.

- Defiance? -

Once Trump takes office, the law's implementation will fall to his attorney 
general, who could choose not to enforce it, or stall, defying Congress's 
overwhelming support for the legislation.

The Trump administration might also approach the Republican majority in 
Congress to modify the law, potentially giving ByteDance more time to find a 
buyer or devise alternative solutions.


- Alternatives -

Once banned, the assumption is that TikTok users will move to other apps, 
like Instagram Reels and YouTube shorts, TikTok copycats that have grown and 
will directly benefit from their rival's demise.

Elon Musk's X could also benefit and the tycoon has made it known that he 
wants his platform, formerly Twitter, to more closely resemble TikTok, with 
video content and shopping features.

Trump has expressed concern that a ban would primarily advantage Meta-owned 
Instagram, which may explain Mark Zuckerberg's recent public support for 
Trump.

Some American content creators have already migrated to Xiaohongshu (Red 
Note), another Chinese social media app that recently topped the Apple App 
Store downloads.

- Investor rescue? -

Several potential buyers have emerged, including a group led by Frank 
McCourt, former owner of the Los Angeles Dodgers, even if ByteDance has ruled 
out a sale for now.

His partner in the bid, Canadian businessman Kevin O'Leary, recently golfed 
with Trump and reported the president-elect's desire to use the TikTok saga 
as leverage in US-China relations.

A report that the Chinese authorities would be open to a buyout by Musk was 
denied by TikTok.

Former Activision Blizzard CEO Bobby Kotick also remains interested in buying 
TikTok, according to the Information.

For now, TikTok's fate rests with the Supreme Court, with the company lawyers 
asking the nine justices for a delay to any ban to provide "breathing space" 
for a solution.

"Nobody knows what they can do and who's going to do it until they hear from 
the Supreme Court," Trump told Newsmax on Monday.