TikTok threatens to shutdown tomorrow if Biden does not intervene
What's the story
Popular social media platform TikTok, owned by China's ByteDance, has warned of a potential shutdown in the US tomorrow. The company is now seeking intervention from the Joe Biden administration to avoid this outcome. The threat comes after a recent Supreme Court ruling that upheld a law prohibiting TikTok's operation unless ByteDance gives up its ownership stake.
Protection
TikTok seeks assurance for service providers
TikTok has claimed it will be "forced to go dark" on January 19 unless the Biden administration issues a "definitive statement" assuring its "most critical service providers" that they won't be held liable for breaking the law. These providers include tech giants Apple and Google, who distribute TikTok via their app stores, as well as hosting partners such as Amazon and Oracle.
Leadership response
CEO's appeal and White House's stance
Following the SC ruling, TikTok CEO Shou Chew appealed to President-elect Donald Trump in a video message. However, he did not divulge any details of the company's plans once the law comes into effect at midnight today. The White House has said it will leave the decision on TikTok's future to Trump, who has pledged to rescue the app and is due to take office on Monday.
Diplomatic discussions
Trump's conversation with Xi Jinping
On Friday, Trump disclosed that he had spoken with Chinese President Xi Jinping on "balancing trade, fentanyl, TikTok, and many other subjects." The White House clarified Biden's position on TikTok in a statement saying that while the app should remain accessible to Americans, it must be under American ownership or another arrangement that addresses national security concerns identified by Congress.
Enforcement and opposition
DOJ supports ban, politicians flip stance
The Department of Justice (DOJ), which has been tasked with enforcing the TikTok ban by penalizing its US service providers $5,000 per user with access to the app, has expressed its support for the ban. Attorney General Merrick Garland said yesterday, "Authoritarian regimes should not have unfettered access to millions of Americans's sensitive data." With the deadline looming, some politicians who backed the ban are now calling for ByteDance to be given more time to divest.
Sale prospects
TikTok's future and potential buyers
ByteDance has refused to sell TikTok, citing Chinese law restrictions on its proprietary algorithm, which is key to the app's success. However, some investors including former Treasury Secretary Steven Mnuchin and businessman Frank McCourt have shown interest in buying TikTok's US assets. Without a sale, the law would prevent TikTok from being available on app stores and internet hosting services starting tomorrow.