Home Money & Business Business Trump vows to rescue TikTok, but the future remains uncertain.

Trump vows to rescue TikTok, but the future remains uncertain.

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After a challenging year marked by worries and ongoing legal proceedings regarding its status in the United States, TikTok may have found an unexpected ally in Donald Trump, who was once seen as its principal adversary.

During his recent campaign, the president-elect, who previously sought to ban the app during his last term, expressed a commitment to oppose any prohibition against TikTok. A decision could be reached by mid-January, coinciding with an ongoing court case in Washington that could greatly impact the platform’s future.

TikTok, along with its Chinese parent company ByteDance, has been in a prolonged legal struggle with the federal government over a law aimed at severing its ties to ensure national security. This legislation, enacted by President Joe Biden in April, requires ByteDance to divest its holdings within a nine-month timeframe, extendable by three months if a sale is in the works. Should this proceed, the deadline might overlap with Trump’s initial days in office.

The companies assert that divesting is unfeasible, and if the law is upheld, they would be compelled to cease operations by January 19, right before Trump’s second inauguration. Legal representatives for both TikTok and the government have requested a federal appeals court to deliver a decision by December 6, with an anticipated appeal to the Supreme Court by the side that loses the case, prolonging the entire situation.

When contacted for a statement, Trump’s transition team provided no specifics on how he plans to fulfill his promise to “save TikTok.” On a recent post on Truth Social, Trump encouraged supporters of the app to rally behind him. Spokeswoman Karoline Leavitt emphasized that he is committed to realizing this pledge.

Leavitt stated, “The American public re-elected President Trump by a significant margin, giving him a mandate to follow through on the commitments he’s made throughout his campaign.”

In a March conversation with CNBC, Trump acknowledged that he still viewed TikTok as a national security threat but argued against imposing a ban, fearing it would benefit competitors like Facebook, which he has criticized since the 2020 election outcome. He dismissed suggestions that his stance was influenced by Republican megadonor Jeff Yass, asserting they had only met briefly and that Yass had not mentioned TikTok at that meeting.

Despite Trump’s concerns, lobbying efforts from ByteDance and those affiliated with Yass have intensified. Reports show that this year alone, ByteDance compensated veteran lobbyist David Urban $150,000 to advocate for the app in Washington, in addition to spending over $8 million on internal lobbying efforts and another $1.4 million on outside consulting firms.

Moreover, it was reported that Kellyanne Conway, a notable figure from Trump’s administration, is being funded by Yass-linked group Club for Growth to promote TikTok’s interests in Congress. A representative for the organization indicated that Conway was hired for her expertise in polling efforts. Both Urban and Conway did not respond to requests for comments, while TikTok has maintained a stance denying any national security concerns and opted not to comment on the matter.

If the judicial system maintains the law’s validity, the responsibility will fall to Trump’s Justice Department to enforce consequences for any breaches, which could involve app stores being banned from distributing TikTok and internet hosting services barred from providing support. Leah Plunkett, a Harvard Law School lecturer, explained that while the attorney general is compelled to examine potential violations, they have discretion over whether to pursue legal action against those companies.

Trump could explore various options to stave off TikTok’s disappearance. Potential actions may include issuing an executive order to overturn the ban—something Plunkett considers possibly unconstitutional—or persuading Congress to revoke the legislation, which would require backing from his Republican allies who have also championed eliminating Chinese control over TikTok.

In a statement post-election, Republican Rep. John Moolenaar from Michigan observed that Trump’s established reservations regarding TikTok align closely with the divestment law’s intentions. He indicated that “The Trump Administration will have a rare chance to facilitate an American acquisition of the platform.”

However, ByteDance has previously stated its unwillingness to sell TikTok, despite expressions of interest from various investors, including former Treasury Secretary Steven Mnuchin. Analysts suggest that the likelihood of selling the algorithm that drives the app’s functionality is minimal. Thus, any potential buyer might end up with a version of TikTok that lacks its essential core and would necessitate substantial reevaluation with new technological support.

According to Sarah Kreps, director of the Tech Policy Institute at Cornell University, there exists a possibility that Trump could reassess the matter and instruct his administration to initiate negotiations aimed at establishing a new agreement with TikTok. TikTok’s proposed draft agreement to the Biden administration included enhanced user protections and increased oversight of its U.S. operations. Nevertheless, the administration has contended in recent court filings that the complexity and scale of TikTok would pose challenges for enforcing such agreements.

Given that Trump has not had access to recent intelligence briefs regarding this issue, it remains plausible that he could alter his position, abandoning his commitment to TikTok once he engages with updated information, as Kreps suggested.

Plunkett advised that if she were to offer guidance to TikTok, she would recommend formulating a divestment strategy that adheres to the law while maximizing their advantage. She stated, “The uncertainty surrounding the potential actions of a Trump administration is too significant to ignore.”