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White House dismisses TikTok's comment as a stunt
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Supreme Court upholds ban, Biden unlikely to intervene
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Users explore alternatives, rivals see share rise
(Changes headline, adds Chinese statement in paragraph 8)
By David Shepardson
Jan 18 (Reuters) - U.S. President-elect Donald Trump
said on Saturday he would "most likely" give TikTok a 90-day
reprieve from a potential ban after he takes office on Monday,
as the app with 170 million American users buzzed with nervous
anticipation ahead of a shutdown set for Sunday.
"The 90-day extension is something that will be most likely
done, because it's appropriate," Trump told NBC in an interview.
"If I decide to do that, I'll probably announce it on Monday."
The Chinese-owned app, which has captivated nearly half of
all Americans, powered small businesses and shaped online
culture, said on Friday it will go dark in the U.S. on Sunday
unless President Joe Biden's administration provides assurances
to companies such as Apple ( AAPL ) and Google that
they will not face enforcement actions when a ban takes effect.
Under a law passed last year and upheld on Friday by a
unanimous Supreme Court, the platform has until Sunday to cut
ties with its China-based parent ByteDance or shut down its U.S.
operation to resolve concerns it poses a threat to national
security.
The White House dismissed TikTok's Friday comment as a
stunt, reiterating on Saturday that it was up to the incoming
Trump administration to take action, increasing the likelihood
of a shutdown on Sunday.
"We see no reason for TikTok or other companies to take
actions in the next few days before the Trump administration
takes office on Monday," press secretary Karine Jean-Pierre said
in a statement.
TikTok did not immediately respond to a request for comment
on the new White House statement.
The Chinese embassy in Washington on Friday accused the U.S.
of using unfair state power to suppress TikTok. "China will take
all necessary measures to resolutely safeguard its legitimate
rights and interests," a spokesperson said.
Users on the app were saying their goodbyes, some filming
themselves frantically scrolling or sharing final secrets with
their followers ahead of the ban.
"Does anyone know if the TikTok ban goes into effect on
Sunday or if we have all of Sunday to like brain rot still? I
need to plan accordingly," fitness influencer Britany Williams
said in a video to her 64,000 followers.
Supreme Court justices upheld the ban on Friday in a
unanimous decision.
Without a decision by Biden to formally invoke a 90-day
delay in the deadline, companies providing services to TikTok or
hosting the app could face legal liability. It is not clear if
TikTok's business partners, including Apple ( AAPL ), Alphabet's Google
and Oracle, will continue doing business with it before
Trump is inaugurated on Monday.
Trump helped initiate the U.S. moves against TikTok at the
end of his first term, telling reporters he would ban the app.
USERS MOVE TO ALTERNATIVES
Uncertainty over the app's future had sent users - mostly
younger people - scrambling to alternatives including
China-based RedNote. Rivals Meta and Snap had
also seen their shares rise this month ahead of the ban, as
investors bet on an influx of users and ad dollars.
Marketing firms reliant on TikTok have rushed to prepare
contingency plans this week in what one executive described as a
"hair on fire" moment after months of conventional wisdom saying
that a solution would materialize to keep the app running.
There have been signs TikTok could make a comeback under Trump,
who has said he wants to pursue a "political resolution" of the
issue and last month urged the Supreme Court to pause
implementation of the ban.
TikTok CEO Shou Zi Chew plans to attend the U.S. presidential
inauguration on Monday and sit among high-profile guests invited
by Trump, a source told Reuters.
Suitors including former Los Angeles Dodgers owner Frank McCourt
have expressed interest in the fast-growing business that
analysts estimate could be worth as much as $50 billion. Media
reports say Beijing has also held talks about selling TikTok's
U.S. operations to billionaire and Trump ally Elon Musk, though
the company has denied that.
Privately held ByteDance is about 60% owned by institutional
investors such as BlackRock and General Atlantic, while its
founders and employees own 20% each. It has more than 7,000
employees in the U.S.