TikTok Faces Ban for 170 Million Americans

By Sheila Dang and Jaspreet Singh

(Reuters) – TikTok stopped working for 170 million Americans late on Saturday after the U.S. Supreme Court ruled against TikTok’s bid to avoid a ban that could shut the app down.

The ban stems from legislation passed in 2024 due to national security concerns, mandating TikTok’s parent company, ByteDance, to sell the app or face shutdown on Jan. 19.

It remains uncertain how long the ban will last as President-elect Donald Trump, who assumes office on Monday, has expressed intentions to find a “political resolution” to keep the app operating in the U.S. On Sunday, Trump posted on Truth Social: “SAVE TIKTOK!”

What Happens to the App?

New users will be unable to download TikTok from Apple and Google app stores, and existing users cannot update the app due to the law prohibiting any entity from facilitating TikTok’s download or maintenance. The status of TikTok’s business partners, including Oracle, remains unclear. However, TikTok plans to continue paying its 7,000 U.S. employees.

How Will Users Be Affected?

TikTok’s 170 million U.S. users cannot access the app even if it remains on their devices. Attempts to use virtual private networks (VPNs) to bypass restrictions have proven unsuccessful. Other Chinese social media apps, like RedNote (also known as Xiaohongshu), may gain popularity as alternatives. Content creators are encouraging followers to shift to platforms like Instagram and YouTube.

What Will Advertisers Do?

Advertisers are swiftly preparing contingency plans, fearing the ban could disrupt their campaigns. One marketing executive referred to it as a “hair on fire” moment. TikTok is still promoting new advertising features despite the impending ban, which jeopardizes over $11 billion in U.S. advertising investment, according to WARC Media. Wall Street analysts are keenly observing the impacts on companies like Meta and Snap.

What Happens to U.S.-China Trade Relations?

A TikTok ban could intensify already strained U.S.-China trade relations, following export restrictions on American semiconductor technology. However, a TikTok ban has been a consideration for five years. Analysts suggest Trump might use an executive action to safeguard TikTok during his presidency while seeking leverage in negotiations with China.

Who Are the Potential Buyers?

Despite stating it cannot be sold by ByteDance, TikTok has attracted interest from billionaire Frank McCourt, whose consortium values the app at about $20 billion without its algorithm. Reports indicate Chinese officials are considering selling TikTok’s U.S. operations to Elon Musk, though TikTok has dismissed this as “fiction.” Hours before the ban, Perplexity AI submitted a bid to merge with TikTok’s U.S. operations.