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President Trump Signs Executive Order Delaying TikTok Ban

President Donald Trump has signed an executive order aimed at postponing the enforcement of a law that would ban TikTok, providing a temporary reprieve for the popular video app and its business partners. The order grants a 75-day extension during which the law will not be enforced, and companies working with TikTok will not face liability for their involvement.

The executive order is designed to give the Trump administration time "to pursue a resolution that protects national security while saving a platform used by 170 million Americans." Trump stated, “Essentially with TikTok I have the right to sell it or close it,” indicating that the administration is exploring options for the app's future, including a potential sale or partnership.

Trump mentioned the possibility of a "joint venture" involving TikTok and unspecified other entities, expressing confidence that there would be significant interest in such an arrangement.

The executive order comes in response to a law that took effect on Sunday, which makes it a crime for companies to support TikTok as long as it is controlled by ByteDance, the Beijing-based parent company. This law was passed by bipartisan lawmakers in April due to concerns that TikTok could be used by the Chinese government for espionage or data collection.

Earlier this month, the Supreme Court ruled that the national security concerns surrounding TikTok justified a forced sale. If TikTok remained under ByteDance's ownership, the enforcement of the ban would begin on January 19.

In anticipation of the law's enforcement, companies providing web hosting and cloud services to TikTok, including Oracle and Akamai, ceased their support, and major app stores like Google and Apple removed TikTok from their platforms. TikTok even temporarily shut down its services for about 14 hours before restoring them after Trump’s announcement.

Following Trump's social media post indicating his intention to take executive action, TikTok reactivated its servers and credited Trump for its return. Oracle and Akamai resumed their support, but Apple and Google remained cautious, as reinstating a ByteDance-owned TikTok would still violate the law and expose them to potential fines.

Legal experts have pointed out that while Trump’s executive action attempts to clarify the legal landscape for TikTok, it does not change the underlying law. Constitutional scholar Alan Rozenshtein noted that the executive order does not stop the law from being in effect or prevent companies from violating it.

The law does allow for TikTok to continue operating if Trump certifies to Congress that "significant progress" has been made toward separating TikTok from ByteDance. However, if Trump were to misrepresent the situation to Congress, it could lead to serious legal ramifications.

Some legal experts anticipate that Trump's executive action may face challenges in court, particularly from tech companies seeking a declaratory judgment to clarify the legal situation. Concerns about shareholder lawsuits related to potential market value impacts are also on the minds of major tech firms.

Ryan Calo, a law professor specializing in tech policy, emphasized that the law grants significant power to the president, but any legal protections promised through executive action may not hold up in court. He warned that if Trump were to withdraw his support for TikTok, the app could face immediate repercussions.

Trump's executive order to delay the TikTok ban reflects the complexities surrounding the app's future in the U.S. amid national security concerns and ongoing negotiations. As the situation develops, the potential for a joint venture or acquisition remains uncertain, while the political and legal implications continue to unfold. The interplay between technology, law, and executive power will be critical in determining TikTok's fate in the American market.

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