Biden punts the TikTok ban to Trump

The Biden administration has declared that it will defer dealing with the controversy surrounding the TikTok ban to President Donald Trump, who will be stepping into office shortly. A White House official clarified, “Our position on this has been clear: TikTok should continue to operate under American ownership. Given the timing of when it goes into effect over a holiday weekend a day before inauguration, it will be up to the next administration to implement.”

The decision stems from the impending deadline for TikTok’s operations to comply with a law targeting its Chinese ownership. Without intervention, the ban will take effect, creating uncertainty for companies like Apple and Google, which could face monetary risks. However, outgoing President Joe Biden and his administration currently have the option of formally extending the timeline for TikTok to sell its U.S. operations to an American entity. This extension could last up to 90 days.

Challenges for ByteDance and US Companies

ByteDance, TikTok’s Chinese parent company, has been primarily focused on contesting the legality of the ban in court rather than seriously engaging with potential American buyers. A few Democratic lawmakers, led by Sen. Ed Markey (D-MA), have urged Biden to consider using the 90-day extension provision. In a letter addressed to the outgoing president, these lawmakers emphasized the importance of delaying the deadline to mitigate potential disruption.

In spite of these calls, Biden’s White House has not hinted at plans to grant an extension, and officials appear to be passing the baton to the incoming administration. If no progress toward a sale is demonstrated, the extension option remains legally unavailable. Meanwhile, companies tied to TikTok's operations, including Oracle, Apple, and Google, face mounting pressure to decide their roles as service providers, should the ban be enforced. None of these companies have disclosed their plans to address the situation as the deadline looms.

Potential Shutdown Options

Even though the law does not specifically command TikTok to shut down, the app might still voluntarily suspend its U.S. services due to complications. The fear of losing operational support from companies like Oracle could influence TikTok’s decision. Meanwhile, the Supreme Court presents an additional layer of uncertainty. So far, the highest court has refrained from halting the law. However, an opinion on related cases may emerge during its next announcement on Friday at 10 AM ET, potentially bringing new clarity to the situation.

If the Supreme Court upholds the ban as expected, no technical barriers will prevent it from taking effect on Sunday. The broader question remains whether TikTok and its involved stakeholders will preemptively act before enforcement escalates. Though Trump has offered vague reassurances about supporting TikTok’s survival, it is unclear how he plans to navigate the legal and financial complexities tied to the law.

Ultimately, the fate of TikTok lies in legal, corporate, and political domains, each holding different keys to resolving the current impasse. As Biden transitions out of office, the pressures and consequences of the TikTok ban now rest squarely on Trump’s incoming administration to unravel.