U.S. Leaders Explore Deal Options as TikTok Ban Set to Take Effect

What Happened?

Senate Majority Leader Chuck Schumer called for the pending ban on TikTok in the U.S. to be delayed to allow more time for the company to find an American buyer.

'We aren’t against TikTok. We want TikTok to keep going. But we are against a Chinese company that is in cahoots with the Chinese Communist Party owning TikTok,' Schumer said Thursday during floor remarks.

Schumer added that the security risks that TikTok presents under current ownership can’t be ignored.

A bill was introduced Wednesday by Sen. Ed Markey (D-Mass) to extend the deadline by another 270 days.

But that effort was blocked by Sen. Tom Cotton (R-Ark.), who argued TikTok had ample time to find a buyer.

'We didn’t pull the rug out from under TikTok, and we didn’t ban it,' Sen. Cotton said in a statement. 'Instead, Congress simply demanded that the app could no longer be owned and controlled by our nation’s worst enemy, communist China.'

President Joe Biden is reportedly 'exploring options' on how it can avoid the app from being shut down Sunday when its ban is expected to take place.

According to NBC News, many calls have been made to White House personnel urging Biden not to let a ban go into effect.

President-elect Donald Trump, who takes office one day after the Jan. 19 ban, is reportedly considering an executive order to suspend enforcement of the measure for two to three months.

The New York Times reported that TikTok CEO Shou Zi Chew is expected to attend Trump’s inauguration.

Why it Matters

The Supreme Court appeared likely to uphold the federal law during oral arguments last week.

Justices reportedly expressed skepticism about the company's legal challenge after agreeing to hear appeal arguments by TikTok that challenged the law.

TikTok and parent company ByteDance allege that the banning of its platform 'will shutter one of America’s most popular speech platforms the day before a presidential inauguration.'

The bipartisan measure was signed into law by Biden, despite the change in his stance to consider the possibility of a last-minute resolution.

There also remains uncertainty about how the court will rule on the case, considering Trump's change in position after requesting the court to consider staying the Act's deadline.

The Foreign Adversary Controlled Applications Act 'prohibits distributing, maintaining, or providing internet hosting services for a foreign adversary controlled application.'

As a result, TikTok would have to be sold to an American company or face a U.S. ban.

Wedbush analyst Dan Ives reportedly estimated $40 billion to $50 billion as the likely asking price for the app to be acquired under U.S. ownership.

But TikTok challenges the law, stating it violates its free speech rights under the First Amendment and has remained firm on not selling to a U.S. buyer.

How it Affects You

The Supreme Court decision can effectively impact roughly 170 million American users of TikTok.

That includes over one million content creators who earn a living through the app as the final days until a ban slowly approaches.

The Higher Court's final decision between free speech and national security may come soon.