By David Shepardson
WASHINGTON (Reuters) – TikTok said on Sunday it was restoring its services after President-elect Donald Trump said he would restore access to the app in the U.S. upon his return to power on Monday.
The statement came after US users reported being able to access the Chinese-owned service's website, while the much more widely used TikTok app itself has started to come back online for some users with only a few basic services.
“In agreement with our service providers, TikTok is in the process of restoring service,” TikTok said in a statement, thanking Trump for “providing the necessary clarity and assurance to our service providers that they will not face any penalties (for) providing TikTok more than 170 million Americans and enables more than 7 million small businesses to thrive.”
TikTok stopped working for US users late Saturday before a law shutting it down on national security grounds went into effect on Sunday. US officials have warned that there is a risk of misuse of Americans' data under ByteDance's Chinese parent company.
Trump said he would “extend the time until the bill's bans go into effect so we can make a deal to protect our national security.”
“I would like the United States to have a 50% ownership position in the joint venture,” he wrote on Truth Social.
Trump said the executive order would make any company that helped prevent TikTok from going dark bear no liability before his order.
Trump previously said he would most likely give TikTok a 90-day reprieve from the ban after he takes office, a promise TikTok cited in a notice posted to users of the app.
“A law has been passed in the US banning TikTok, unfortunately, that means you can't use TikTok yet. We are lucky that President Trump has indicated that he will work with us on how to restore TikTok once he takes office. Please stay tuned.” announced a message to users of TikTok, which disappeared from the Apple (NASDAQ: ) and Google (NASDAQ: ) app stores late Saturday.
While temporary, the unprecedented shutdown of TikTok will have a wide-ranging impact on US-China relations, US politics, the social media market and the millions of Americans who depend on the app economically and culturally.
Trump's rescue of TikTok represents a reversal of attitude from his first term. In 2020, he wanted to ban the short video app over concerns that the company was sharing Americans' personal information with the Chinese government. Recently, Trump said he has a “warm place in my heart for TikTok,” crediting the app with helping him win over young voters in the 2024 election. In August 2020, Trump signed an executive order giving ByteDance 90 days to sell TikTok, but then gave his blessing to a deal structured as a partnership rather than a divestiture that would involve both Oracle (NYSE: ) and Walmart (NYSE: ) taking stakes in the new company. Not everyone in Trump's GOP agreed with the effort to circumvent the law and “Save TikTok.” Republican Senators Tom and Pete Ricketts said in a joint statement: “Now that the law has gone into effect, there is no legal basis for any kind of 'extension' of its effective date. In order for TikTok to come back online in the future, ByteDance must agree to a sale that meets legal requirements for qualifying sales by severing all ties between TikTok and Communist China.” The US has never banned a major social media platform. The law, passed overwhelmingly by Congress, gives the incoming Trump administration sweeping powers to ban or seek the sale of more Chinese-owned apps. Other ByteDance-owned apps, including video editing app CapCut and lifestyle social app Lemon8, were also offline and unavailable in US app stores as of late Saturday. Apple and Google did not immediately respond to requests for comment. MOVE TO ALTERNATIVES Under a law passed last year and upheld by a unanimous U.S. Supreme Court on Friday, the platform had until Sunday to cut ties with its China-based parent company or cease operations in the U.S. to address concerns it posed a threat to national security. . The Chinese embassy in Washington on Friday accused the US of using undue state power to crack down on TikTok. “China will take all necessary measures to resolutely protect its legitimate rights and interests,” the spokesman said. Uncertainty about the app's future has prompted users — mostly younger people — to look for alternatives, including China-based RedNote. Rivals Meta (NASDAQ: ) and Snap saw their share prices rise this month ahead of the ban as investors bet on an influx of users and advertising dollars. 'HAIR ON FIRE' MOMENT Web searches for 'VPN' surged within minutes after US users lost access to TikTok, according to Google Trends. Instagram users were worried about whether they would still receive items they bought on the TikTok Shop, the video platform's e-commerce arm. Marketing firms dependent on TikTok rushed to prepare contingency plans in what one executive described as “hair on fire” after months of conventional wisdom that a solution to keep the app afloat would materialize. TikTok CEO Shou Zi Chew plans to attend the inauguration of the US president and attend a rally with Trump on Sunday, a source told Reuters. Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business, which analysts say could be worth as much as $50 billion. Media reports say Beijing has also discussed selling TikTok's US operations to billionaire and Trump ally Elon Musk, although the company has denied this. US search engine startup Perplexity AI submitted an offer to ByteDance on Saturday to merge Perplexity with TikTok US, a source familiar with the company's plans told Reuters. Perplexity would merge with TikTok US to create a new entity by connecting the combined company with other partners, the person added. Privately held ByteDance is about 60% owned by institutional investors such as BlackRock (NYSE: ) and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the US
