TikTok, the popular social media platform, disappeared from Apple and Google app stores late on Saturday, marking a significant shift in the digital landscape. This move follows a law passed last year, upheld by a unanimous US Supreme Court, mandating TikTok to sever ties with its China-based parent company or cease US operations due to national security concerns. The shutdown is expected to affect not only US-China relations but also the political arena and millions of Americans who rely on the app both economically and culturally.
The law grants the incoming Trump administration the authority to ban or seek the sale of other Chinese-owned apps. This unprecedented decision comes as the US has never before banned a major social media platform. Marketing firms heavily dependent on TikTok are now scrambling to devise contingency plans to mitigate the impact of the shutdown. Meanwhile, several suitors, including former Los Angeles Dodgers owner Frank McCourt, have expressed interest in purchasing TikTok, with analysts estimating its value at up to $50 billion.
Concerns have also surfaced among TikTok users who fear losing access to merchandise purchased through TikTok Shop, the app’s e-commerce division. Meanwhile, competitors Meta and Snap have seen an uptick in their share prices this month, as investors anticipate a potential migration of users and advertising revenue from TikTok.
Privately held ByteDance, TikTok's parent company, is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. President-elect Donald Trump announced his intention to restore TikTok access in the US via executive order after his inauguration on Monday. However, he emphasized a requirement for US investors to hold at least 50% ownership of the app.
"I would like the United States to have a 50% ownership position in a joint venture. By doing this, we save TikTok, keep it in good hands and allow it to stay up." – Donald Trump
In reaction to the ban, users on other platforms like Instagram expressed mixed emotions. Some worried about their online purchases while others lamented the loss of their digital community.
"This is my new home now." – A TikTok user
"I didn't really think that they would cut off TikTok. Now I'm sad and I miss the friends I made there. Hoping it all comes back in just a few days." – @RavenclawJedi
The shutdown also affects other ByteDance-owned apps like CapCut and Lemon8, which are now unavailable in US app stores. The situation remains tense as a spokesperson for the Chinese Embassy in Washington vowed retaliation.
"China will take all necessary measures to resolutely safeguard its legitimate rights and interests." – A spokesperson for the Chinese Embassy in Washington
The unfolding events have piqued interest across various sectors. U.S. search engine startup Perplexity AI took an ambitious step by submitting a bid on Saturday to merge with TikTok's US operations.
TikTok CEO Shou Zi Chew plans to attend the US presidential inauguration and participate in a rally with Trump on Sunday. As these developments unfold, stakeholders from tech investors to political analysts watch closely.