Donald Trump says he will give TikTok a 90-day extension to find buyer.
- Ban on national security grounds came into effect on Sunday
- Trump, who previously called for ban, wants to find solution
- TikTok could sell stake to US company
TikTok has been restored in the US after a new law banning the app on national security grounds caused a brief blackout lasting less than 24 hours.
The legislation came into effect on Sunday, with TikTok’s estimated 170 million American users unable to access the algorithmically-powered short video platform from late Saturday night. The app was also removed from popular mobile marketplaces.
This was despite outgoing president Joe Biden stating his administration would not enforce the ban on his final day in office.
He said the issue was one for his successor Donald Trump to solve. Trump, who previously campaigned for a ban on TikTok during his first term in office, has since reversed his position and indicated he will issue an executive order giving the app a 90-day reprieve.
The ban is based on fears that, as a Chinese-owned company, TikTok’s parent ByteDance is obligated to share user data with the government in Beijing if it requests it – a condition that could potentially expose the personal information of its American user base.
The only way for TikTok to avoid the ban long-term is if ByteDance sells its controlling stake in the company. Trump says the 90-day extension will give all parties more time to find a solution, including handing over a substantial stake to a US-owned entity.
Trump’s change of heart is believed to be motivated by the effectiveness of content related to his re-election campaign on the platform, as well as an acknowledgement that reversing the ban would be popular among Gen Z audiences. It would also be an opportunity to bring the company into part-US ownership, something he came close to achieving during his first term when Oracle came close to acquiring the company in 2020.
TikTok, for its part, had appealed to the US Supreme Court on the grounds the legislation that would impose the ban infringes the first amendment of the US constitution, which protects freedom of speech.
However, the ban, which has strong bipartisan support, was deemed to be constitutional because of a “well-substantiated” national security threat posed by a foreign adversary.
TikTok says it has taken steps to ensure that data related to its US user base cannot be accessed by ByteDance employees in China. An investigation by the Wall Street Journal (WSJ), though, found evidence of “unofficial” data sharing.
SportsPro says…
The sports industry will be following the outcome of this case very closely. TikTok’s ability to reach younger users who don’t engage with traditional television or other social media platforms is unmatched, while its algorithmic approach to content delivery helps find engaged audiences.
The company has formal relationships with many major rights holders, while most properties have an official presence on the platform. Meanwhile, TikTok is hugely popular with athletes and content creators. You only have to look at the digital success of the Paris 2024 Olympic Games to understand its impact.
The loss of such a valuable channel would be of huge concern to the industry already grappling with how it attracts new fans in an era where there is so much competition for their attention.
It’s easy to suggest that sport will simply migrate to a new platform should TikTok be banned, but it’s not that simple. While the industry assesses potential replacements for X (the social network formerly known as Twitter), TikTok is a much larger and more technologically complicated service.
In both instances, potential usurpers must offer feature parity and critical mass. However, replicating TikTok’s highly engaged user base and artificial intelligence (AI) technology will not be an easy or quick task to complete – even for a tech giant like Meta and Instagram, for example. It will take years of investment in software and infrastructure, without the guarantee of success.
You have to imagine the sports industry will be hoping TikTok finds a buyer rather than sink into oblivion.
Credit: https://www.sportspro.com/news/tiktok-ban-restored-donald-trump-january-2025/