Former President Donald Trump has proposed a significant shift in TikTok's ownership structure. He suggests the U.S. government should hold 50% of the app. This approach aims to address national security concerns while keeping TikTok available in the U.S. Trump's plan involves extending the divestment deadline and seeking congressional authority. The proposal raises questions about government involvement in tech companies and how this will impact the app's future operations and user experience.
How did former President Donald Trump intervene in TikTok's U.S. operations amid a looming shutdown? Trump proposed a joint venture model where the U.S. government would own 50% of TikTok, ensuring government control while addressing national security concerns.
This proposal followed a bipartisan law mandating TikTok's divestment from its Chinese parent company, ByteDance, due to fears that the app could be exploited for surveillance or propaganda by foreign adversaries. Under Trump's plan, the government would not invest funds but provide necessary regulatory approval, allowing the platform to continue operating in the U.S. while meeting legal requirements.
The Supreme Court upheld the law requiring TikTok's divestment, rejecting arguments that it violated free speech protections. The Protecting Americans from Foreign Adversary Controlled Applications Act set a deadline for TikTok to find a U.S. owner or face a ban. Trump intervened by suggesting an extension to this deadline to facilitate a deal.
He emphasized that Congress granted the president authority to craft solutions fulfilling the law's mandates. This move aimed to prevent a shutdown that would disrupt TikTok's 170 million American users and preserve jobs dependent on the platform. The platform plays a significant role in engaging young voters.
Prior to Trump's proposal, TikTok's performance began to degrade as suppliers halted services ahead of the shutdown deadline. Apple removed ByteDance apps from its App Store, impacting in-app purchases and new subscriptions. Following Trump's intervention, TikTok began restoring services and expressed gratitude for the clarity provided to service providers.
The platform committed to working on a long-term solution to remain in the U.S., though the financial health of its operations remains opaque due to its Cayman Islands registration. Elon Musk publicly opposed the ban, advocating for freedom of speech and pointing out the imbalance in China's own app policies.
Trump's plan sought to balance national security with economic interests, preventing significant business opportunities from being lost to other nations. However, no serious bidders have emerged for TikTok's U.S. operations, and it is unclear whether Chinese authorities would permit ByteDance to divest.
The proposal highlighted the complexities of regulating global platforms in an era of heightened scrutiny over foreign influence.
