TikTok ban deadline: inside the platform's final obstacle to survival in the US

Politicians seem sceptical amid rumours of a coming deal

Amid all the rumours about a deal from companies like Oracle to keep TikTok operating in the US, some legislators insist that ByteDance, which owns the platform, completely divest control. Photo: EPA

TikTok users in the US are waiting with bated breath as various US companies and entrepreneurs seek to hash out a deal with the platform's China-based owner ByteDance before an April 5 deadline potentially prompts it to shut down.

Reddit co-founder Alexis Ohanian this month announced he was joining billionaire Frank McCourt’s pursuit of the platform, in what some are calling “the people's bid for TikTok”.

A recent report in Politico indicates that Oracle is close to reaching an agreement that would allow it to assist with running the platform. Other companies, such as Perplexity, have openly expressed interest in trying to help operate the social media app.

A lengthy list of candidates is interested in helping run TikTok as it barrels towards an April 5 ban in the US. But so far, ByteDance has given no indication it will give up complete control, creating concerns in Congress.

TikTok chief executive Shou Zi Chew has repeatedly said user data on the platform is not compromised by the Chinese government. AFP

“A deal that keeps ByteDance in control wouldn’t just miss the mark on addressing national security concerns – it would directly violate the law,” wrote Republican Representative John Moolenaar in an email on behalf of the House Select Committee on China.

In that email, which also appeared as an opinion article in various outlets, Mr Moolenaar addressed rumours of deals that might keep TikTok afloat. So far, none satisfy the Protecting Americans from Foreign Adversary Controlled Applications Act, the legislation that seeks to ban TikTok from the US, he said. The law was challenged but upheld by the Supreme Court this year.

“ByteDance must fully divest its control of TikTok and have no say in its operations; nor can the two share data, content or algorithms,” he wrote, while adding that these terms are negotiable.

Details in the legislation that seeks to force ByteDance to divest TikTok create penalties for companies that allow for access to the platform once it is banned. Photo: Screenshot

Mr Moolenaar added that a “bad deal” would undermine the law aimed at protecting US citizens.

“If ByteDance continues to control TikTok, US technology companies such as Google, Apple, and Oracle could soon find themselves facing shareholder lawsuits, leading to escalating penalties and massive fines,” he wrote.

Those lawsuits, however, would go against assurances from the US Justice Department that promised Google and Apple shortly after President Donald Trump extended the TikTok ban deadline that it would not enforce the laws that could hold both companies liable for the platform appearing in their respective app stores.

The National has contacted Mr Moolenaar for further comment.

Some have speculated that US President Donald Trump will ultimately approve a deal to keep TikTok operating, even if it doesn't satisfy the legislation which sought a complete divestment from ByteDance. Photo: Alex Brandon

Mark MacCarthy, a senior fellow at the Institute for Technology Law and Policy at Georgetown University in Washington, said TikTok may survive in the US, even if a forthcoming deal fails to satisfy Congressional requirements.

“My instinct is that US companies get a larger ownership share but ByteDance retains control,” he said.

Prof MacCarthy has studied previous legislative attempts to crack down on big technology firms, such as the federal government’s takedown of AT&T’s Bell System in the early 1980s.

Even if a deal does not satisfy Congress, he said it might only matter if the deal satisfies Mr Trump.

Thus far, Republicans in Congress have been unwilling to challenge the US President, who has credited the platform with helping him win over younger voters in last year's election. This could pave the way for him to save TikTok through a US company, even if does not retain full control of the platform.

“People are deriding President Trump’s approach as transactional, but he is simply taking a very broad view of the relationship and is willing to make concessions in one area in order to advance US interests in other areas,” Prof MacCarthy said, referring to China and ByteDance.

“Finding a way to allow TikTok to operate in the US might be a concession he would make in order to gain ground in other areas.”

Meanwhile, TikTok has continued a US advertising blitz as it seeks to portray the video-based social platform as essential for businesses and content creators. That campaign however, is not swaying Mr Moolenaar.

As time runs out on the US TikTok extension window provided by President Donald Trump, users are increasingly searching for whether or not the platform will again be banned in the US. (Source: Google)

“[The campaigns] heighten suspicions about the true nature of TikTok’s current operations,” he wrote. “This is precisely why we should be even more vigilant – ByteDance’s control over TikTok has already jeopardised our national security.”

ByteDance and TikTok have repeatedly denied accusations from legislators and technology analysts that US data is compromised by the social media platform.

In 2023, TikTok's chief executive Shou Zi Chew dismissed concerns while testifying before Congress: “Let me state this unequivocally: ByteDance is not an agent of China or any other country.”