TikTok Restores Service in the U.S. Following Trump's Intervention
TikTok has announced the restoration of its services in the United States after President-elect Donald Trump assured that the app's access would be revived upon his return to power. The platform expressed gratitude towards Trump for his efforts, stating, "As a result of President Trump's efforts, TikTok is back in the U.S."
The Chinese-owned app had faced disruptions for U.S. users before Trump's intervention, with the platform issuing a statement acknowledging the ongoing restoration process. TikTok also thanked Trump for providing clarity and assurance to service providers, allowing millions of Americans and small businesses to continue using the app.
Trump's involvement in saving TikTok comes amidst strained U.S.-China relations, with the President expressing intentions to impose tariffs on China while also seeking direct communication with China's leadership. The app had ceased operations for U.S. users before a national security law was set to shut it down, citing concerns over data privacy under Chinese parent company ByteDance.
In a surprising turn of events, Trump, who previously aimed to ban TikTok over data-sharing concerns, has now shown support for the app. He has even credited TikTok with aiding in winning over young voters in the 2024 election. Despite signing an executive order in 2020 to sell TikTok, Trump later approved a partnership deal involving Oracle and Walmart, deviating from the initial divestment plan.
Not all members of Trump's Republican Party supported efforts to save TikTok, with some senators emphasising the need for ByteDance to comply with divestiture requirements to sever ties with China. The U.S. government's authority to ban or seek the sale of Chinese-owned apps was reinforced by a law passed by Congress, impacting not only TikTok but also other ByteDance-owned platforms like CapCut and Lemon8.
As TikTok's future hung in the balance, users turned to alternative platforms like RedNote, causing a surge in interest for competitors like Meta and Snap. The uncertainty surrounding TikTok's operations prompted a spike in searches for VPN services and raised concerns among users regarding pending purchases from TikTok Shop.
Marketing firms and executives scrambled to devise contingency plans amidst the uncertainty, with TikTok CEO Shou Zi Chew reportedly planning to attend Trump's rally following the restoration of services. Various suitors, including former Los Angeles Dodgers owner Frank McCourt and U.S. search engine startup Perplexity AI, have expressed interest in potential mergers with TikTok U.S.
TikTok resumes services in the U.S. following Trump's intervention.
Trump's support for TikTok marks a reversal from previous attempts to ban the app.
U.S. government's authority to regulate Chinese-owned apps impacts ByteDance's operations.
Source: REUTERS