TikTok prepares for immediate shutdown in US this Sunday as ban nears

The US Supreme Court is ruling on the constitutionality of a law signed by President Joe Biden mandates TikTok to divest from its Chinese parent company, ByteDance, and sell to a US-based entity

Social media platform TikTok has started preparing to cease its US operations from Sunday (Jan 19), the day a federal ban is set to take effect, according to a report by The Information which cited sources familiar with the matter. The app’s future in the US remains uncertain, hinging on whether the Supreme Court decides to intervene and block the legislation.

 

What is the SC hearing regarding TikTok?

Last week, TikTok’s legal team presented arguments before the Supreme Court.

 

The court is expected to rule on the constitutionality of a law signed by President Joe Biden in April, which mandates TikTok to divest from its Chinese parent company, ByteDance, and sell to a US-based entity. If upheld, TikTok will shut down on January 19, a day before Donald Trump assumes office.

 

Conversely, a ruling in TikTok’s favour would allow the app to continue serving its 170 million American users.

 

Frank McCourt, Elon Musk among TikTok buyers

If ByteDance agrees to a sale, several US buyers, including billionaire Frank McCourt, have shown interest. On Monday, Bloomberg reported that China was considering selling TikTok’s US operations to Elon Musk if the ban could not be avoided.

 

While China’s preference is to retain TikTok under ByteDance, they are exploring contingencies, including a potential sale to Musk, who is known for his close ties to incoming US President Donald Trump.

 

TikTok shutdown seems imminent

With the inauguration of President-elect Donald Trump approaching, speculation over a TikTok ban has intensified, fuelled by Trump’s pledge to adopt a stricter stance on Beijing. 

Latest reports suggest that a shutdown is likely, but TikTok may explore avenues for a potential return to the US market in the future.