TikTok is back, but will it stay?

On Tuesday, the second day following the ban and the day before President Trump’s inauguration TikTok was accessible again to users, after being effectively shut down for only 14 hours. The fiasco raises one major question: Will TikTok be around for good?

Why is it important: TikTok’s return to operation following its ban, although brief, raises greater questions about its future in America. TikTok, as one of the most popular apps in the world, has been under intense scrutiny for its business model, relationship with users worldwide, and ownership structure. The survival of the app depends on a combination between political maneuvering, complex dynamics between US-China interests, and legal challenges. The app is now at the center of geopolitical tensions and its future is anything but certain.

Details TikTok, which had been shut down for 14 hours before, was reopened on Sunday. The app thanked Trump for reassuring TikTok that it and its partners would not be subject to heavy fines for continuing to run the app. The app was operational again on Monday but TikTok remained unavailable in the Apple and Google apps stores. Trump said on the social media platform X (19459036) that he would “save” software. What does saving TikTok mean? According to the Economic Times, despite Trump’s executive order to “save TikTok”the legality is still unclear. This is because the law requiring divestiture had been passed by large majority in Congress, was signed by President Joe Biden and upheld unanimously by the Supreme Court.

In announcing his plans to sign an executive order to save TikTok he demanded that the US own 50%. TikTok, however, states it is already 60% owned globally institutional investors such as BlackRock and General Atlantic. An additional 20% of the company’s shares are owned by its employees including over 7,000 US workers.

Other banned software, such as Lemon8 or CapCut, which are owned by TikTok parent company ByteDance were also banned last Sunday. According to lawyers who are familiar with US laws, if TikTok was to remain in the US for a long time, the Supreme Court would have to relegislate. This would be a lengthy process.

Context In the US, the TikTok debate is a result of national security concerns. This is due to allegations that the app may allow the Chinese government access to US user data. Then-President Trump responded by signing executive orders to ban the app unless a US company purchased it. In his second term he changed his mind and became a supporter of the app. He positioned himself as the person who could make a meaningful change. Shuang is a Shanghai based tech reporter for Technode.com. She covers AI, tech companies, ecommerce and retail. Find her via e-mail: [email protected]. More by Shuang jing