TikTok has announced that it will cease operations in the U.S. on Sunday unless the Biden administration provides assurances to tech giants like Apple Inc. AAPL and Alphabet Inc.'s GOOG GOOGL Google that they will not face legal repercussions once a ban on the app takes effect.
What Happened: TikTok’s statement was released hours after the Supreme Court upheld a law banning the app in the U.S. on national security grounds.
This decision, if enforced, would affect the platform’s 170 million American users and put the app’s future in the hands of President-elect Donald Trump, who has promised to save TikTok after his inauguration on Monday.
"Unless the Biden Administration immediately provides a definitive statement to satisfy the most critical service providers assuring non-enforcement, unfortunately TikTok will be forced to go dark on January 19," TikTok said in a statement.
The law, passed last year with bipartisan support and signed by President Biden, could result in hefty fines for companies like Apple, Google, and Oracle ORCL if they continue to provide services to TikTok after the ban takes effect.
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Despite the Supreme Court’s decision, a growing number of lawmakers who initially voted for the ban are now advocating for TikTok’s continued operation in the U.S.
ByteDance, TikTok’s Chinese parent company, has made little progress in selling the app before the Sunday deadline. However, the app’s shutdown might be temporary as President Trump has indicated plans to take action to save the app.
Why It Matters: TikTok’s CEO Shou Zi Chew is set to attend President-elect Trump's inauguration.
This comes amid the Supreme Court’s decision to uphold the TikTok ban. The ban, if enforced, could potentially free up billions in ad revenue and user engagement, with companies like Meta Platforms Inc. META standing to gain significantly.
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