Is a U.S. Prohibition on TikTok Around the Corner?


The Trump administration has provided TikTok’s parent company with an extension to divest its U.S. operations, moving the deadline to June 19—just one day ahead of the previous deadline. While this allows prospective buyers some additional time, the urgency is still significant for a U.S. entity to complete a transaction.

Numerous major companies have shown interest in purchasing TikTok, such as Amazon, Oracle, Microsoft, and Project Liberty. Yet, there are ongoing concerns among potential acquirers regarding the Chinese parent company, ByteDance, maintaining control over TikTok’s primary algorithm. As reported by ABC News, some offers have included the idea of leasing the algorithm to a U.S. buyer, which could breach U.S. regulations.

A law enacted by President Biden in 2023 expressly forbids any active operational ties between the U.S. version of TikTok and any foreign-controlled organizations. This encompasses any cooperation concerning the app’s content recommendation algorithm. Consequently, prospective buyers are reportedly looking for legal safeguards to protect themselves from potential future litigation by the U.S. government.

Will TikTok cease operations for its 170 million American users on June 19? Not necessarily. Former President Trump has suggested he might grant yet another extension—most likely via executive order—if a deal hasn’t been finalized by the deadline. He had previously postponed the sale deadline on his first day back in office, January 20, and again on April 5.

Trump has also indicated that the newly imposed tariffs on Chinese goods could serve as leverage in negotiations regarding TikTok’s future. However, with rising tensions amid a growing trade conflict, China may be less inclined to comply with U.S. requests.

This narrative is still developing. Stay tuned for further updates.