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Tiktok temporary ban and User Impact in U.S

TikTok, the popular short-form video platform owned by China’s ByteDance, has been at the centre of significant controversy in the United States, culminating in a temporary ban and ongoing discussions about its future.

Background

Concerns over TikTok’s data privacy practices and potential national security risks have been escalating among U.S. officials. In April 2024, President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act, mandating that ByteDance divest from TikTok or face a U.S. ban. ByteDance’s legal challenge against this law was unsuccessful, leading to the app’s suspension in the U.S. on January 18, 2025, following a Supreme Court decision upholding the ban.

Temporary Ban and User Impact

The ban’s immediate effect was a 12-hour blackout of TikTok services in the U.S. Users reported increased censorship and content moderation upon the app’s return, including fewer livestreams, more flagged content, limited search results, and warnings about misinformation. TikTok attributed these issues to temporary instability, denying any policy or algorithm changes.

High-Profile Discussions and Potential Deals

President Donald Trump announced ongoing discussions with various parties regarding the acquisition of TikTok, with a decision expected within 30 days. Reports suggest a plan involving Oracle and outside investors taking control of TikTok’s operations, while ByteDance retains a stake. Oracle, which already supports TikTok’s web infrastructure, would oversee data collection and software updates to address national security concerns.

China’s Stance

In a notable development, China signalled its willingness to cooperate with the U.S. to keep TikTok operational. The Chinese Ministry of Foreign Affairs stated that companies could make their own decisions regarding operations and acquisitions, indicating a potential openness to a deal that maintains TikTok’s presence in the U.S

Market Reactions

Following the ban, iPhones with TikTok pre-installed were listed on eBay, with some prices reaching nearly $5 million. This surge in demand highlights the app’s popularity and the lengths to which users are willing to go to retain access.

Internal Challenges and Legal Scrutiny

Internal documents from a Kentucky lawsuit revealed that TikTok was aware of its design features’ detrimental effects on young users and that its tools to limit kids’ time on the site were largely ineffective. The lawsuit also alleges that TikTok prioritized “beautiful people” on its platform, promoting narrow beauty standards.

Current Status and Future Outlook

As of January 26, 2025, TikTok remains operational in the U.S., with a 75-day extension granted by President Trump to negotiate a resolution. The platform’s future hinges on ongoing negotiations, potential ownership changes, and the implementation of measures to address national security and user safety concerns.

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