The Biden administration has decided not to enforce the impending TikTok ban, leaving the decision to the incoming Donald Trump administration.
What Happened: Despite the ban set to take effect on Sunday, the Biden administration will not force TikTok to shut down for U.S. users. However, the popular social media app could choose to do so voluntarily, impacting its 170 million monthly users.
“Our position on this has been clear: TikTok should continue to operate under American ownership. Given the timing of when it goes into effect over a holiday weekend a day before the inauguration, it will be up to the next administration to implement,” a White House spokesperson told ABC News.
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The law, which comes into effect a day before President Joe Biden leaves office, states that app stores and internet hosting services could face fines of up to $5,000 per user if they continue to provide services to TikTok.
This puts tech companies like Apple Inc. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), and Oracle Corp. (NYSE:ORCL) in a precarious position.
Why It Matters: While both President Biden and President-elect Trump have limited options to delay the ban, the law does allow for a one-time extension of up to 90 days under specific conditions.
However, there is currently no indication that these conditions have been met.
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Despite attempts by Democrats to extend the deadline for TikTok’s parent company, ByteDance, to divest, Sen. Tom Cotton (R-AR) objected on the grounds of national security concerns, the report noted.
Trump’s pick for national security adviser, Florida Rep. Mike Waltz, confirmed that the incoming administration is exploring options to keep TikTok available, including a possible executive order.
Earlier it was also reported that TikTok CEO Shou Chew is set to attend Trump’s inauguration.
As the ban looms, users are seeking alternatives. A growing number of users are turning to RedNote, a widely used Chinese social media app, known as Xiaohongshu in China.
Photo Courtesy: Shutterstock.com
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
