TikTok’s future in the US grew more uncertain this week as officials suggested its Chinese owner, ByteDance, should have more time to sell the app and prevent a ban. With the clock ticking toward Sunday’s deadline, key figures from both political sides urged for a 90-day extension to allow for a divestiture. US Representative Mike Waltz, who was appointed as Trump’s national security adviser, indicated that the new administration would take steps to keep TikTok operational if substantial progress is made in securing a deal.
Senate Majority Leader Chuck Schumer, traditionally a supporter of the law forcing TikTok to sell its US assets, also called for an extension, citing concerns over the app’s potential shutdown disrupting the lives of millions of users. The law, passed in April, mandates ByteDance either sell TikTok’s US assets by Sunday or face a ban on national security grounds. However, it’s now unclear whether the app will be allowed to stay active in the US without an official extension.
TikTok CEO Shou Zi Chew is reportedly set to attend President-elect Donald Trump’s inauguration, further hinting at a shift in relations between the app and the Trump administration. While concerns about Chinese ownership and its potential for data collection remain, Schumer and other lawmakers are signalling a growing bipartisan desire to avoid the political and economic fallout of a TikTok ban. The situation remains fluid, with decisions expected to unfold in the coming days.
As the deadline approaches, TikTok’s potential shutdown has already caused some users to explore alternatives, with RedNote, another Chinese social media platform, seeing a surge in US users. Meanwhile, with more than 170 million American users and substantial ad revenue at stake, the clock is ticking for a resolution before the app faces a permanent ban.
Washington has blacklisted over two dozen Chinese entities, including Zhipu AI and Sophgo, for alleged links to restricted chip technology in Huawei processors. The Commerce Department has also tightened export controls on chips that could be diverted to Huawei.
Zhipu AI, backed by Tencent and Alibaba, was accused of contributing to China’s military modernisation through advanced AI research. Sophgo faced scrutiny after a chip found in Huawei’s Ascend 910B AI system matched one it ordered from Taiwan Semiconductor Manufacturing Co (TSMC).
The measures impose stricter licensing requirements for chip exports, targeting semiconductors at 14 or 16-nanometre nodes used in AI applications. New restrictions also affect DRAM memory, crucial for high-bandwidth AI processing, which could impact Chinese chipmaker CXMT.
Zhipu AI denied the claims, while Sophgo stated it had no direct or indirect ties to Huawei. Huawei and TSMC declined to comment on the latest sanctions, which build on previous curbs against Huawei and its network of suppliers.
Disappointment and confusion swept across TikTok users in the United States as news broke that ByteDance, the app’s Chinese owner, plans to shut down the platform for its 170 million US users by Sunday. The move comes in response to a federal ban requiring ByteDance to sell TikTok’s US assets by January 19 due to national security concerns. While some users hold out hope for a last-minute reprieve, many are preparing for the worst.
Content creators, many of whom have built careers and followings on TikTok, expressed frustration and sadness. Some vowed to boycott rival platforms like Instagram, Facebook, and X, while others scrambled to save their content. True crime creator Amber Goode, from Colorado, criticised the government for “playing with us,” while other users shared instructions on migrating to alternative platforms, including China-based apps like RedNote.
TikTok has maintained that it does not and would never share US user data with China, arguing that the ban violates First Amendment rights. Unless the Supreme Court intervenes, users attempting to open the app on Sunday will be redirected to a shutdown information page. President-elect Donald Trump is reportedly exploring executive actions to delay the ban, but the outcome remains uncertain.
The shutdown has sparked mixed emotions globally, with some international users relieved that American social media issues may no longer dominate their feeds. However, for US creators like Ishpal Sidhu, who stands to lose her livelihood, the uncertainty has cast a shadow over what was once a thriving platform.
Italian startup iGenius has launched Colosseum 355B, a large language model built using the latest Nvidia technology, designed for industries with strict data protection and compliance needs. CEO Uljan Sharka highlighted the challenges that tight regulations pose for AI adoption in sectors like finance, heavy industry, and government, where data security is paramount.
Unlike major competitors like OpenAI, iGenius offers open-source AI models that allow companies to run the technology on their own infrastructure, ensuring that sensitive data remains in-house. The startup is already in talks with potential clients in the financial services and industrial sectors.
Sharka also traveled to Brussels to present the new model to the European Commission, aiming to gain regulatory approval and foster wider adoption in Europe’s heavily regulated markets.
China’s Commerce Ministry announced plans to investigate US government subsidies to its semiconductor sector following requests from China’s mature node chip industry. The ministry stated on Thursday that these subsidies, introduced under the Biden administration, allegedly provide American companies with an unfair competitive advantage in the global market.
According to the Chinese government, US firms have exported mature node chip products to China at reduced prices, causing harm to the interests of China’s domestic semiconductor industry. Beijing views these practices as a threat to its industry’s rights and competitive balance.
The investigation reflects rising tensions between the two nations over technology and trade, particularly as both seek to bolster their semiconductor sectors amid growing geopolitical competition.
Austrian advocacy group Noyb has filed privacy complaints against six Chinese companies, including TikTok, Shein, and Xiaomi, alleging illegal transfers of European user data to China. The group, known for targeting US tech giants like Apple and Meta, said this is its first case against Chinese firms. Complaints have been filed in four EU countries, seeking fines of up to 4% of each company’s global revenue.
Noyb claims that companies such as Alibaba’s AliExpress and Tencent’s WeChat transfer EU citizens’ data either directly to China or undisclosed ‘third countries,’ which are likely China. Under EU data protection laws, such transfers are prohibited if the destination country fails to meet the bloc’s strict privacy standards. A Noyb lawyer emphasised that China’s status as a ‘surveillance state’ makes such transfers clearly unlawful.
The allegations add to mounting regulatory challenges for Chinese tech firms. TikTok, already under scrutiny in Europe for election interference concerns, faces a potential US ban starting Sunday over national security fears. Regulators in multiple regions continue to ramp up pressure on Chinese companies amid growing global concerns over data privacy and security.
TikTok is preparing to shut down its US operations on Sunday unless a federal ban is averted at the last minute, according to sources. The ban, stemming from a law signed last April, requires TikTok’s Chinese parent company, ByteDance, to sell its US assets by January 19 or face nationwide restrictions. The Supreme Court is currently deliberating on whether to uphold or pause the ban, but no ruling has been made yet.
President-elect Donald Trump, set to take office the day after the ban would take effect, is reportedly considering a temporary suspension of the shutdown. However, legal uncertainty clouds the possibility of such action. Meanwhile, the Biden administration, in its final days, has signalled it will not block the ban without a credible divestment plan from ByteDance. TikTok has argued that the law violates First Amendment rights and warned that a prolonged ban could lead to significant user loss and global disruptions to its services.
If the ban proceeds, TikTok plans to display a pop-up message informing users of the shutdown and allow them to download their data. The app would become largely inoperable as US companies would no longer be permitted to provide critical services for its maintenance. TikTok has emphasised its ability to restore operations quickly if the ban is reversed but warned that the shutdown would impact not just American users but its global platform due to its reliance on US-based infrastructure.
The political and legal standoff has sparked widespread public and corporate reactions. Social media users have expressed disappointment at the impending ban, while TikTok’s US operations, employing over 7,000 workers, hang in the balance. Despite ongoing efforts to delay the enforcement, the platform faces an uncertain future as Sunday’s deadline looms.
Several chip and manufacturing industry groups have criticised the Biden administration’s new export controls, arguing they were implemented without sufficient consultation. A private letter sent to President Joe Biden on January 13 expressed concerns that the rules could harm US companies and shift market share to global competitors.
The Semiconductor Industry Association (SIA) and SEMI, representing chipmakers and manufacturing equipment firms, objected to the new licensing requirements for AI chip exports, including advanced high-bandwidth memory. They argued the lack of public input ignored the regulations’ economic and international consequences.
High-bandwidth memory, essential for AI chip production, is primarily manufactured by US and South Korean companies. The new rules could restrict its sale to China, further tightening controls on advanced technology exports.
A separate source suggested the restrictions may also affect companies like Lam Research, which previously benefited from a rule interpretation allowing expanded sales in China. Neither the SIA, SEMI, nor Lam Research commented immediately.
Meta may be forced to halt or modify features in India after an antitrust ruling banned its WhatsApp messaging service from sharing user data with Meta for advertising purposes. The Competition Commission of India (CCI) imposed a $24.5 million fine and a five-year ban on the practice, accusing the company of abusing its dominance and coercing WhatsApp users into accepting a 2021 privacy policy that allegedly expanded data sharing unfairly.
India, Meta’s largest market with over 500 million WhatsApp users and 350 million Facebook users, is crucial for the company’s operations. The data-sharing ban could impact Meta’s ability to offer personalised ads on Facebook and Instagram, the company said in its court filing. Meta argued that this restriction could harm businesses, such as fashion brands, that rely on personalised ads to connect with customers. The US firm also warned the ruling could threaten its commercial viability in the region.
Meta has publicly defended its 2021 policy changes but criticised the CCI’s decision in a 2,000-page tribunal appeal, claiming the watchdog lacks the technical expertise to assess the implications of its ruling. The Indian appeals tribunal is set to hear Meta’s case, with the possibility of pausing the CCI directive while the legal process unfolds.
This challenge in India adds to Meta’s global struggles, including prior accusations in the EU over unclear privacy policy changes. The CCI’s ruling now requires WhatsApp to give users the choice to opt out of data sharing with Meta, signaling a broader push for greater transparency and user control in data practices worldwide.
The US Securities and Exchange Commission (SEC) has filed a lawsuit against Elon Musk, accusing him of delaying the disclosure of his 2022 Twitter stake, which violated federal securities laws. According to the complaint, Musk waited 11 days beyond the required 10-day window to reveal his 5% ownership of Twitter, enabling him to purchase over $500 million worth of shares at lower prices before disclosing his 9.2% stake on April 4, 2022. Twitter’s stock price surged by more than 27% following the announcement.
The SEC seeks civil penalties and a repayment of profits it claims Musk gained unfairly. Musk’s attorney, Alex Spiro, dismissed the lawsuit as a ‘sham,’ arguing it stems from a minor administrative oversight. Musk has previously clashed with the SEC, including a 2018 settlement over misleading tweets about taking Tesla private, which resulted in a $20 million fine and other conditions.
This lawsuit is the latest in a series of legal challenges Musk faces over his $44 billion purchase of Twitter, now rebranded as X. Musk, who is worth $417 billion, according to Forbes, has also been sued by former Twitter shareholders in Manhattan federal court for the delayed disclosure, which they claim caused them financial harm. The SEC’s action comes just days before Chair Gary Gensler’s scheduled departure, marking another chapter in Musk’s contentious history with the regulatory body.
