Today, the U.S. Supreme Court’s decision to ban TikTok in the United States is taking effect. This ruling requires ByteDance, TikTok’s parent company, to either sell the app or face a complete shutdown. The decision comes from national security concerns over the app’s data collection practices and ties to the Chinese government.
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However, despite numerous offers and rumors about potential buyers, among them is the AI search engine Perplexity. ByteDance has yet to agree to sell TikTok, leading to the imminent shutdown of the service for U.S. users.
Will Trump Issue an Executive Order?
Tomorrow, President-elect Donald Trump will officially take office. Interestingly, Trump, who previously supported the ban during his first term, has recently shown signs of a changing of hearts. This shift in perspective is attributed to the platform’s role in helping him gain popularity among younger voters during the 2024 election. Trump has even invited TikTok CEO Shou Zi Chew to his inauguration, so you can make up your mind as to what this means for the future of the app. There is growing speculation that Trump might use an executive order to delay the ban, allowing more time for a political resolution or a potential sale.
Who Might Enjoy TikTok’s Ban if the Decision Holds?
If TikTok is indeed banned in the U.S., several companies stand to benefit from the fallout. Meta Platforms (META), which owns Facebook and Instagram, could see an influx of users to their short-form video services. Similarly, Alphabet’s (GOOGL) YouTube and Snap’s (SNAP) Snapchat are well-positioned to capture the attention of displaced TikTok users. Investors are already eyeing these companies as potential winners after TikTok’s exit from the U.S. market. In
What’s next?
Today is the first day TikTok will be blocked for American users, and some will have to search for another social network to engage with. While the Supreme Court’s decision marks a crucial moment, the final outcome remains uncertain. With Trump returning to the Oval Office tomorrow, there is still a chance that the app could be granted a temporary reprieve. Meanwhile, other nations across the globe will monitor the situation and will have to, at some point, make a decision of their own regarding the Chinese app. Also lurking on the side are industry rivals eager to welcome new users, making this a dynamic and evolving situation to watch closely.
