TikTok has restored its service to US users on Sunday after having gone dark due to a federal ban. President-elect Donald Trump had announced plans to issue an executive order pausing the ban before his inauguration on Monday, giving TikTok’s parent company, ByteDance, additional time to resolve concerns about national security by selling its US operations.
1. Executive order v. federal ban
TikTok’s shutdown followed the enactment of a bipartisan federal law requiring ByteDance to divest its US operations due to fears that the app’s ties to China could pose risks to national security. These concerns cantered on allegations of data misuse and potential access by the Chinese government.
The law, passed in April, came with severe penalties for non-compliance and mandated that TikTok be removed from digital app stores. As a result, Apple and Google pulled TikTok and other ByteDance-owned apps, such as CapCut and Lemon8, from their platforms.
When TikTok users logged on late Saturday, they were met with a message confirming the ban. However, by Sunday afternoon, another message announced the platform’s restoration: “As a result of President Trump’s efforts, TikTok is back in the U.S.!”
STATEMENT FROM TIKTOK:
— TikTok Policy (@TikTokPolicy) January 19, 2025
In agreement with our service providers, TikTok is in the process of restoring service. We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170…
President Trump’s plan involves extending the deadline for ByteDance to divest its US operations. This move, according to the newly invested President, would allow TikTok to negotiate a viable sale while maintaining its US user base, which includes over 170 million Americans and supports millions of small businesses. Trump’s executive order promises no penalties for companies that enable TikTok’s continued operation during this grace period.
However, the legality of such an order remains a grey area. The US Supreme Court has recently upheld the ban, emphasising the national security risks outweighing concerns about limiting free speech or disrupting the app’s US user base. Representative Mike Gallagher, the bill’s author, argued there is no provision for an extension under the law unless there are “legally binding documents” proving a divestiture is imminent. Constitutional and business law experts are divided on whether Trump’s order has the authority to override these provisions.
If ByteDance were a normal market actor, they would have taken the tens of billions of dollars people are willing to offer them.
— Mike Gallagher (@RepGallagher) January 19, 2025
But they are not a normal market actor. TikTok is a weapon in the hands of Xi Jinping, and only changing the ownership structure will fix that. pic.twitter.com/wHO42f2UP8
2. Political implications
Trump’s move is an 180˚ turn from his first term, during which he sought to ban the platform, citing the same national security concerns. Instead, he is now praising TikTok for its role in connecting with young voters. Controversially, Trumps move is not supported by his party. Republican lawmakers insist that TikTok must sever all ties with China to comply with the law, arguing the extension is as a circumvention of bipartisan legislation aimed at protecting US interests.
“Now that the law has taken effect, there is no legal basis for any kind of ‘extension’ of its effective date. For TikTok to come back online in the future, ByteDance must agree to a sale that satisfies the law’s qualified-divestiture requirements by severing all ties between TikTok and Communist China,” Senators Tom Cotton and Pete Ricketts said in a joint statement.
Any company that hosts, distributes, services, or otherwise facilitates communist-controlled TikTok could face hundreds of billions of dollars of ruinous liability under the law, not just from DOJ, but also under securities law, shareholder lawsuits, and state AGs. Think about… https://t.co/XamZ1qAk2K
— Tom Cotton (@SenTomCotton) January 19, 2025
3. What’s next?
ByteDance has resisted selling its US operations outright but faces mounting pressure from lawmakers and regulators. Reports suggest interest from several high-profile investors, including billionaire Elon Musk, though ByteDance has denied claims of any active discussions.
As President Trump takes office, his administration’s handling of TikTok will likely set a precedent for addressing foreign-owned digital platforms. The issues of national security, technology and public interest will remain at the forefront. Whether the platform can secure a long-term resolution that satisfies US lawmakers and maintains its massive user base remains to be seen.
