TikTok's future in the U.S. may be secured by Trump's victory.
- If TikTok is not divested from ByteDance by January, it may receive a reprieve from a potential U.S. ban due to Donald Trump's election victory.
- During his candidacy, Trump opposed the TikTok ban that was supported by both Republicans and Democrats in April.
- In March, Trump stated that he thought a TikTok ban would solely benefit Meta, which he referred to as "the enemy of the people."
The tech CEOs, including Tim Cook, Mark Zuckerberg, and Jeff Bezos, publicly praised Donald Trump after he won the U.S. presidency last week.
One name was conspicuously missing: TikTok CEO Shou Zi Chew.
TikTok faces the most immediate and existential threat from the U.S. government among all top tech companies due to its ongoing legal battle with the U.S. government. In April, President Joe Biden signed a law that requires ByteDance to sell TikTok by January 19. If ByteDance fails to comply, internet hosting companies and app store owners like Apple and Google will be prohibited from supporting TikTok, effectively banning it in the U.S.
Chew and TikTok may receive a reprieve with Trump's return to the White House.
Although both Republicans and Democrats supported the Biden TikTok ban in April, Trump voiced opposition to the ban during his candidacy. Trump acknowledged the national security and data privacy concerns with TikTok in a March interview with CNBC's "Squawk Box," but he also said "there's a lot of good and there's a lot of bad" with the app.
Trump used TikTok's uncertain future in the US as a reason for people to vote against Harris.
The president-elect stated in a September post on his Truth Social service that although they are not taking any action with TikTok, the other side plans to shut it down. As a result, he urged his followers to vote for Trump if they enjoy using the app.
Trump hasn't publicly discussed his plans for TikTok since his election, but his transition spokeswoman, Karoline Leavitt, stated that he will deliver on the issue.
President Trump was re-elected by the American people with a significant margin, allowing him to fulfill the campaign promises he made, according to Leavitt's statement.
After meeting with billionaire Jeff Yass in February, Trump's rhetoric on TikTok began to shift.
In March, NBC and CNBC reported that Susquehanna International Group, owned by Yass, has a 15% stake in ByteDance, worth about $21 billion, while Yass also owns 7% of the company. Additionally, it was reported that Yass was a part owner of the business that merged with the parent company of Trump's Truth Social.
If ByteDance fails to sell TikTok by the January deadline, Trump may have two options: either he could ask Congress to repeal the law or he could implement a "selective enforcement" of the law, which would allow TikTok to continue operating in the U.S. without penalties. According to Sarah Kreps, a professor of government at Cornell University, "selective enforcement" would be similar to police officers not enforcing every single instance of jaywalking.
Chew has been silent on TikTok since Trump's win, just as he had been prior to Election Day.
A neutral approach and a wait-and-see strategy may be the Chinese-owned company's current stance, according to Long Le, a China business expert and Santa Clara University associate teaching professor.
Le said it's hard to foresee what Trump will do.
"He's a contrarian, which makes him unpredictable," Le said. "He has a tendency to change his mind from one year to the next."
TikTok didn't respond to requests for comment.
'Facebook has been very bad for our country'
Trump's campaign comments indicate that he is more focused on competing with Meta, the rival of TikTok, on social media apps.
In a March interview with "Squawk Box," Trump stated that Meta, the owner of Facebook and Instagram, posed a greater threat than TikTok. He added that a TikTok ban would only benefit Meta, which he labeled as "an enemy of the people."
Trump stated that Facebook has greatly harmed our country, particularly in relation to elections.
Mark Zuckerberg's comments over the past few months may have influenced Trump's negative views on Meta, according to Cornell's Kreps.
In July, Zuckerberg praised a photo of Trump raising his fist after an assassination attempt as "the coolest thing ever." Following Trump's election, Zuckerberg congratulated him and expressed excitement about working with the new administration.
"Kreps believes that Trump's view on Zuckerberg and Meta has changed since he enjoys people who praise him, and he might revert to his American economic nationalism stance, saying "Let's protect American industry and continue with the Chinese ban.""
Meta didn't respond to a request for comment.
Supporting the TikTok ban could gain Trump's favor with lawmakers concerned about China's global influence, said Milton Mueller, a professor at Georgia Tech's School of Public Policy.
According to Mueller, Sen. Rand Paul, R-Ky., is the only lawmaker who has opposed the TikTok ban and may score big points politically by standing up for it.
If Trump grants a reprieve for TikTok, it's uncertain how much harm it would inflict on his administration, as many politicians are hesitant to openly condemn him, according to Le.
Le stated that they wouldn't challenge him because he recently gained a lot of power.
Trump has gained significant influence on TikTok since launching his account in June, with over 14 million followers. Le believes that Trump may not want to lose the public attention and influence he's gained on the platform.
D.C. Attorney General Brian Schwalb claims that TikTok is a form of "digital nicotine" that is addictive and harmful to young people.
Technology
You might also like
- European SpaceX competitor secures $160 million for reusable spacecraft to transport astronauts and cargo to orbit.
- Palantir experiences a 9% increase and sets a new record following Nasdaq announcement.
- Super Micro faces delisting from Nasdaq after 85% stock decline.
- Elon Musk's xAI is seeking to raise up to $6 billion to purchase 100,000 Nvidia chips for Memphis data center.
- Despite a miss on sales, Alibaba's premarket stock rises 3%.