The US clock strikes ‘ban or divest TikTok’

Bytedance, the TikTok’s parent company, is going to divest its US operations by 19 January 2025 or face a ban in the country.

TikTok users report censorship concerns after the app's revival in the US.

TikTok faces an uncertain future as the US government’s 19 January 2025 deadline approaches, demanding ByteDance divest its US operations or face a nationwide ban. The ultimatum, backed by the Supreme Court’s apparent readiness to uphold the decision, appears to be the culmination of years of scrutiny over the platform’s data practices and ties to China. Amid this mounting pressure, reports suggest Elon Musk, the owner of X (formerly Twitter), could acquire TikTok’s US operations, a proposal that has sparked debates about its feasibility and geopolitical implications.

Now, let’s see how it began..

How did the TikTok odyssey begin?

The story of TikTok began in 2014 with Musical.ly, a social media app enabling users to create and share lip-sync videos. Founded in Shanghai, it quickly gained traction among US and European teenagers. By 2017, Musical.ly had over 100 million users and caught the attention of ByteDance, a Chinese tech giant that acquired it for $1 billion. In 2018, ByteDance merged Musical.ly with its domestic app Douyin, launching TikTok for international audiences. Leveraging powerful machine-learning algorithms, TikTok’s ‘For You Page’ became its defining feature, captivating users with an endless stream of personalised content.

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By 2018, TikTok had become one of the most downloaded apps globally, surpassing giants like Facebook and Instagram. Its cultural influence exploded, reshaping how content was created and consumed. From viral dance challenges to comedic skits, TikTok carved out a unique space in the digital world, particularly among younger users. However, its meteoric rise also brought scrutiny. Concerns emerged over user data privacy and potential manipulation by its parent company ByteDance, which critics claimed had ties to the Chinese government.

The ‘ban or divest’ saga

The incipit of the current conflict can be traced back to 2020 when then-President Donald Trump attempted to ban TikTok and Chinese-owned WeChat, citing fears that Beijing could misuse US data or manipulate public discourse through the platforms. The courts blocked Trump’s effort, and in 2021, President Joe Biden revoked the Trump-era orders, but initiated its review of TikTok’s data practices, keeping the platform under scrutiny. Despite challenges, TikTok continued to grow, surpassing 1 billion active users by 2021. It implemented community guidelines and transparency measures to address content moderation and concerns about misinformation. It also planned to store US user data on Oracle-operated servers to mitigate fears of Chinese government access. However, bipartisan concerns over TikTok’s influence persisted, especially regarding its ties to the Chinese government and the potential data misuse. Lawmakers and US intelligence agencies have long raised alarms about the vast amount of data TikTok collects on its US users and the potential for Beijing to exploit this information for espionage or propaganda. Therefore, last year, Congress passed a bill with overwhelming support requiring ByteDance to divest its US assets, marking the strictest legal threat the platform has ever faced.

The 19 January 2025 deadline and the rumours about Elon Musk’s potential acquisition of TikTok

By 2024, TikTok was at the centre of a geopolitical storm. The US government’s demand for divestment or a ban by 19 January 2025 intensified the platform’s challenges. Amid these disputes, Elon Musk, owner of X (formerly Twitter), has emerged as a potential buyer for TikTok’s US operations. Musk’s ties to US and Chinese markets via Tesla’s Shanghai production hub position him as a unique figure in this debate. If Musk were to acquire TikTok, it could bolster X’s advertising reach and data capabilities, aligning with his broader ambitions in AI and technology. However, such a sale would involve overcoming numerous hurdles, including ByteDance’s valuation of TikTok at $40–50 billion and securing regulatory approvals from both Washington and Beijing. On the other hand, ByteDance, backed by Beijing, is resisting the sale, arguing that the conditioning violates free speech and poses significant logistical hurdles.

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TikTok has attempted to safeguard its US user base of 170 million by planning to allow users to download their data in case the ban takes effect. It has also reassured its 7,000 US employees that their jobs and benefits are secure, even if operations are halted. While new downloads would be prohibited under the ban, existing users could retain access temporarily, although the platform’s functionality would degrade over time.

The looming deadline has sparked a surge in alternative platforms, such as RedNote (known in China as Xiaohongshu), which has seen a significant influx of US users in anticipation of TikTok’s potential exit.

TikTok’s cultural legacy and future

The fate of TikTok in the US hangs in the balance as President-elect Donald Trump considers an executive order to delay the enforcement of the ‘ban or divest’ law by up to 90 days. The potential extension, supported by figures from both political sides, including Senate Majority Leader Chuck Schumer and Trump’s incoming national security adviser Mike Waltz, aims to provide ByteDance, TikTok’s Chinese owner, additional time to divest its US operations and avoid a nationwide ban. With over 170 million American users and substantial ad revenue at risk, lawmakers are increasingly wary of the disruption a ban could cause, signalling bipartisan support to keep the app operational while addressing national security concerns. TikTok CEO Shou Zi Chew’s attendance at Trump’s inauguration further hints at a shift in relations between the platform and the new administration. Meanwhile, the uncertainty has already driven US users to explore alternatives like RedNote as the clock ticks down to the Sunday deadline.

Either way, TikTok’s impact on culture and technology is undeniable. It has redefined digital content creation and inspired competitors like Instagram Reels and YouTube Shorts. Yet, its journey highlights the challenges of navigating geopolitical tensions and concerns over data privacy in a hyper-connected world. As the 19 January deadline looms, TikTok stands at a crossroads. Whether it becomes part of Musk’s tech empire, succumbs to a US ban, or finds another path, its legacy as a trailblazer in short-form video content remains secure. The platform’s next chapter, however, hangs in the balance, as these TikTok developments underscore the broader implications of its struggles, including the reshaping of the social media landscape and the role of government intervention in regulating digital platforms.