TikTok's US ban delayed: What’s next for video-sharing giant?

Washington: In a shock twist, President Donald Trump temporarily relented to place the US ban on TikTok under hold, at least for 75 days more, allowing Chinese parent company ByteDance Ltd. to address the national security concerns. An executive order on Monday, one of Trump's earliest acts since returning to the White House, halted the plans to ban the app at least for now. The extension offers TikTok a brief reprieve after the ban took effect on Sunday, following ByteDance’s refusal to comply with divestment demands under a US law passed last year.

TikTok ban temporarily lifted

The ban has already crippled the TikTok service in the United States, sending its 170 million users into over 12 hours of darkness between Saturday night and Sunday morning. Although, after announcing the ban, TikTok restored services for the users who already had accounts, it is still not available in the app stores provided by Apple or Google. The platforms are waiting for further guidance before reinstating the app.

Trump, who has credited TikTok with helping him connect with younger voters, commented on his decision: "I guess I have a warm spot for TikTok." Trump has garnered nearly 15 million followers on the app since joining last year.

National security concerns behind the ban

TikTok's meteoric rise is attributed to its algorithm, which provides personalized video recommendations based on user activity. Yet concerns about data security and Beijing exploiting the platform for espionage or influence fuel those ties to ByteDance. Such fears have their roots in Trump's first term, when he issued orders barring deals involving ByteDance and WeChat. Courts ended up blocking the orders, but Congress renewed the fire last year when it passed a law requiring TikTok's divestiture unless an approved buyer is identified.

Implications for tech giants

The law, which took effect on Sunday, imposes severe penalties of up to $5,000 per user for app stores and hosting services like Oracle if they distribute TikTok beyond the deadline. Business leaders, influencers, and legal experts are closely watching Trump’s handling of this regulatory, legal, and geopolitical quagmire.

Trump’s next steps

Trump confirmed he has instructed US service providers to maintain support for TikTok as he prepares a long-term resolution. For now, TikTok has received a temporary lifeline, but its future remains uncertain as ByteDance navigates mounting legal and political pressures.