Trump Teases 90-Day Reprieve for TikTok to Dodge U.S. Ban

Tiktok

In a significant development regarding the future of TikTok in the United States, President-elect Donald Trump indicated on Saturday that he is “most likely” to grant the video-sharing app a 90-day extension to navigate its sale or face a potential ban. This statement comes just before his inauguration on Monday, and as a law signed by President Joe Biden last year, which prohibits U.S. mobile app stores and internet hosting services from distributing TikTok, is set to take effect on Sunday.

The law mandates that TikTok’s Chinese parent company, ByteDance, sell the platform’s U.S. operations within nine months to avoid a ban, with provisions allowing the president to extend this deadline if there are signs of a sale progressing. Trump, speaking in an NBC News interview with “Meet the Press” moderator Kristen Welker, mentioned the complexity of the situation, describing it as “a very big situation” that requires careful consideration. He suggested that an announcement about the extension could be made on Monday, once he takes office.

The Biden administration has explicitly stated that they would leave the implementation of this law to Trump’s incoming administration, acknowledging the timing of the ban’s enforcement just before the transition of power. This stance was confirmed by White House Press Secretary Karine Jean-Pierre and Deputy Attorney General Lisa Monaco, who noted that any actions related to the law’s enforcement would be handled by the new administration.

In response to the looming deadline, TikTok has sought clear assurances from the current administration that there would be no enforcement or penalties against app store operators like Apple (AAPL) and Google (GOOG) for continuing to offer TikTok. Without these assurances, TikTok warned it “will be forced to go dark,” though specifics on how this would occur—whether by a voluntary shutdown or due to severed service provisions—were not disclosed.

The White House dismissed TikTok’s warning as “a stunt,” with Jean-Pierre emphasizing that there is no need for immediate action by TikTok or related companies before Trump’s administration begins. She advised that any concerns should be addressed with the new administration, signaling a shift in responsibility for this contentious issue.

Neither Apple, Google, nor Oracle (ORCL), which manages TikTok’s U.S. data, have clarified their stance or plans regarding the enforcement of the ban, leaving the tech community and TikTok’s vast U.S. user base in uncertainty about the app’s immediate future. This scenario underscores the complex interplay between technology, national security, and international business relations, particularly in the context of U.S.-China tech tensions. As Trump prepares to reassume office, the decision on TikTok’s operational fate in the U.S. could set precedents for how such digital platforms are regulated amidst geopolitical considerations.

WallStreetPit does not provide investment advice. All rights reserved.

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