After getting a setback from the Supreme Court, ByteDance-owned TikTok is getting some relief from the newly elected US President Donald Trump. As has been indicated by him previously, Trump has signed an executive order on the first day of his office, postponing the potential ban on TikTok. Trump had earlier indicated in a TV interview d that he would ‘most likely’ grant TikTok a 75 day reprieve from a potential ban.
The executive order reads, “I intend to consult with my advisors, including the heads of relevant departments and agencies on the national security concerns posed by TikTok, and to pursue a resolution that protects national security while saving a platform used by 170 million Americans”, effectively ensuring TikTok stays afloat in the US.
Trump had already confirmed, before his swearing-in, that he will sign an executive order on Monday, delaying the ban. “I am asking companies not to let TikTok stay dark! I will issue an executive order on Monday to extend the period of time before the law’s prohibitions take effect, so that we can make a deal to protect our national security. The order will also confirm that there will be no liability for any company that helped keep TikTok from going dark before my order,” Trump had written on Truth Social.
The order has further directed the US Attorney General to not “take any action on behalf of the United States to enforce the Act for 75 days from the date of this order” and to permit the incoming Trump Administration an opportunity to determine the appropriate course of action with respect to TikTok.
TikTok had released its first official response on Friday, following the Supreme Court’s decision to uphold the law aiming to ban the app from January 19. In its statement, TikTok, which is used by nearly half of all Americans, warned that it would be shut down on Sunday unless President Joe Biden’s administration provides some ‘relief.’ This relief refers to assurances TikTok is seeking from the government to prevent any actions on app stores in the country. TikTok is requesting guarantees that companies like Apple and Google will not face any legal or regulatory actions if they continue to host the app after Sunday.
The Biden White House though had already issued a statement informing that President Biden has decided to delay action on enforcing the TikTok ban, leaving the responsibility for enforcement to the Trump administration.
Before Trump’s statement, TikTok CEO Shou Chew shared a video in which he thanked Trump for his recent support. He expressed his gratitude to President-elect Trump for his commitment to work with the company to find a solution that keeps TikTok available in the United States. He also praised Trump’s views as “a strong stand for the First Amendment and against arbitrary censorship.”
With around 170 million users in the US, the company employs more than 7,000 people in the country. As for the ownership of TikTok’s parent company, ByteDance, approximately 60% is owned by institutional investors like BlackRock and General Atlantic, while the founders and employees each own 20%. Talking about revenue, TikTok’s Economic Impact Report, conducted by Oxford Economics, reveals that the platform generated $14.7 billion in revenue for small- and medium-sized businesses in the US in 2023.
