Following a brief outage occasioned by the implementation of a law that banned TikTok over national security concerns, the video app restored its service in the U.S. on Sunday.
Although the outgoing administration of President Joe Biden had previously declared it would not enforce the ban, TikTok thanked President-elect Donald Trump, who takes office on Monday, for enabling the turnaround.
As the deadline for its Chinese owners, ByteDance, to sell its U.S. unit to non-Chinese buyers approached, the video-sharing app went offline in the U.S. late Saturday.
Read also: TikTok to ‘go dark’ for millions of Americans on Sunday
Trump to postpone the ban for a deal
Trump said he would issue an executive order postponing the ban to give time to “make a deal” after millions of disappointed users were unable to access the app earlier on Sunday.
Through his Truth Social platform, he also suggested that TikTok should be partially owned by the United States. The app could be worth “hundreds of billions of dollars—maybe trillions,” according to the president-elect, who said he “would like the United States to have a 50% ownership position in a joint venture.” Trump wrote. “By doing this, we save TikTok and keep it in good hands.”
He had previously advocated for a TikTok ban and had taken steps to implement one during his first tenure.
Following Trump’s remarks, TikTok stated it was “in the process of restoring service” in a statement that was posted on X.
“We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties for providing TikTok to over 170 million Americans,” it stated.
TikTok did not immediately comment on Trump’s remarks suggesting that the video app be partially owned by Americans.
If the White House can show progress towards a workable agreement, the law permits a 90-day postponement of the ban. ByteDance, meanwhile, has not yet agreed to sell.
The Biden administration has stated that Trump will be in charge of enforcing the law.
TikTok’s significant impact
TikTok has gained popularity due to its capacity to turn regular users into worldwide celebrities through viral videos, from grandmothers providing cooking tips to teenage dancers.
But it has also come under fire for spreading false information, and its Chinese ownership has heightened worries about national security both domestically and abroad.
The outage on Sunday came after the U.S. Supreme Court upheld the law prohibiting TikTok from operating on Friday pending a sale.
Trump attributed his success in reaching younger voters to TikTok, which he signed an executive order increasing pressure on ByteDance to sell in 2020.
Unless ByteDance agrees to sell, it is unclear what the future president would do to lift the restriction.
Adam Kovacevich, CEO of the Chamber of Progress, an industry trade group, cautioned that Congress constructed this bill to be practically impervious to the president.
Read also: U.S. Supreme Court upholds TikTok ban ahead of Trump’s inauguration
The law mandates Google, Apple to remove TikTok
In addition to removing TikTok from app stores, the law mandates that Google and Apple prohibit fresh downloads. If the software is used, the businesses risk fines of up to $5,000 per user.
Enforcing the ban would also be legally required on Oracle, the company that hosts TikTok’s servers.
Memes and comments lamenting the app’s brief closure were abundant on other social networking sites, like X. More pessimistic posts made reference to Trump’s previous attempts to outlaw TikTok.
Offers for TikTok
According to a source acquainted with the transaction, the highly regarded start-up Perplexity AI suggested a merger with TikTok’s US affiliate on Saturday, as reported by AFP.
Although a price was not included in the proposal, the source calculated that it would cost at least $50 billion.
The Los Angeles Dodgers’ previous owner, Frank McCourt, has also made an offer to buy TikTok’s U.S. business.