TikTok’s Fate Hangs in the Balance as Trump Supports the App Amidst Potential Ban
In a surprising turn of events, Republican presidential candidate Donald Trump has expressed his support for TikTok, despite a potential ban looming if Chinese-parent company ByteDance fails to divest the short video app’s U.S. assets. Trump’s stance comes as a U.S. appeals court prepares to hold oral arguments on legal challenges to a new law requiring ByteDance to divest TikTok’s U.S. assets by January 19 or face a ban.
In an interview with Bloomberg BusinessWeek, Trump stated, "I’m for TikTok because you need competition. If you don’t have TikTok, you have Facebook and Instagram." This is a significant shift from Trump’s previous stance, as he had previously called TikTok a threat and even tried to ban it as president in 2020, only to be blocked by the courts.
Trump’s support for TikTok is likely driven by his own interests, as he holds a majority stake in social media company Trump Media and Technology Group, which operates rival network Truth Social. Despite having a market cap of $7 billion, Trump Media’s quarterly revenue is a mere $770,000, comparable to two U.S. Starbucks shops.
The fate of TikTok will be decided in September, when a U.S. appeals court holds oral arguments on the legal challenges to the new law. The hearing will take place in the midst of the final weeks of the 2024 presidential election, adding an extra layer of complexity to the situation.
The law, signed by President Joe Biden on April 24, gives ByteDance until January 19 to sell TikTok or face a ban. The White House has stated that it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok. Biden’s campaign has also joined TikTok in February, further complicating the situation.
The measure was passed overwhelmingly in Congress in April, driven by worries among U.S. lawmakers that China could access data on Americans or spy on them with the app. The debate surrounding TikTok’s fate is likely to continue, with Trump’s support for the app adding a new layer of complexity to the situation.
