TikTok is out of time and out of options

TikTok is out of time and out of options



CNN

As the clock ticks on TikTok, it’s time to make decisions.

The wildly popular video app, which has 170 million American users and a China-based owner, has less than four days before it is banned in the United States if it doesn’t sell to an American buyer. The ban would take effect on Sunday, pending a Supreme Court decision, which is expected to come soon (but it looks like America’s top court will stay the law banning TikTok).

TikTok’s owner, ByteDance, has until Sunday to make a decision, and its options are limited: sell TikTok, shut it down, or try to keep the lights on long enough for President-elect Donald Trump to potentially come to the rescue. And what makes things even more complicated is that these options are not mutually exclusive.

ByteDance has long insisted that it has no intention of selling itself. TikTok’s magical algorithm that keeps you glued to the app is its secret power, and it’s difficult to put a price on such a valuable commodity that is the envy of every other social media app. Spinning off an all-American version of TikTok could also mean that the rest of the world will have to download a new app to access US users’ content. But Bloomberg and the Wall Street Journal reported earlier this week that China is considering a sale – to Elon Musk.

TikTok has been fighting the ban for years. But now, according to The Information, the app is preparing to shut down completely on Sunday to allow its users to collect their data – but TikTok will effectively go dark on Sunday. ByteDance did not respond to a request for comment on The Information’s report on Wednesday.

Even if TikTok shuts down on Sunday, that doesn’t mean it would stay dark forever. It could ultimately sell to an American buyer, which would presumably make TikTok attractive to American users again. According to The Information, the app plans to give creators the option to download their old content in the event of a shutdown.

Another option: TikTok could do nothing. The law, which takes effect Sunday and awaits the Supreme Court’s decision, doesn’t actually force TikTok to do anything. It’s up to the US-based companies that support TikTok to take action.

So come Sunday there’s a very real possibility that people won’t notice much of a change at all. Apple and Google will likely remove the app’s listing from their app stores, but people who have already downloaded the app could continue to use it if TikTok takes no action.

That’s probably not a viable option in the long term: no one would be able to access the app if, for example, they bought a new phone or didn’t download the app in the first place. And it would be illegal for companies like Oracle that host TikTok content in the US to continue providing it to the app’s users. This could force TikTok to provide content from outside the US, impacting service to customers.

It’s all very unclear and complicated – which is why a clean break on Sunday could be the best option for TikTok. Turning off the lights could alienate TikTok’s loyal fan base, perhaps with the deliberate aim of getting Trump’s attention.

Trump, who supported a TikTok ban as president, recently made an about-face and said he no longer supports the ban. He even asked the Supreme Court to suspend the law so his new administration could work out a deal to keep TikTok available to Americans.

The enforcement mechanism for the new law would be the U.S. Department of Justice, which changes hands at noon the day after the ban and which has broad discretion to enforce the law (or not). So if Trump says his administration won’t enforce the ban, TikTok could bet that all the companies that host and support TikTok content will be willing to violate the letter of the law, with the proviso that they do so not be punished.

This is a big risk.

That’s why Sunday could be a very painful day for thousands of YouTubers who have made a career on TikTok. This is why other video streaming apps are now growing in popularity as creators want to maintain their online presence, business and fan base. Competing apps such as RedNote, ByteDance’s Lemon8, Flip, Clapper and Fanbase are becoming increasingly popular in the App Store.

Still, the future of TikTok remains a big question mark. TikTok may shut down, only to reemerge later — with or without a U.S. buyer. Sunday could be tough for TikTok fans. But Monday is a new day, with a new government that could breathe new life into TikTok.

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