For years, there has been uncertainty about the future of the popular social media app TikTok. The recent news of a U.S. “spin-off” of TikTok has also added to the confusion, leaving many to wonder whether TikTok in the U.S. is going away or not.
The uncertainty of TikTok’s future started with what is colloquially known as the “TikTok Ban Bill.” The real name of this bill is the “Protecting Americans from Foreign Adversary Controlled Applications Act,” and it was signed into law on April 24, 2024. The purpose of the bill was to force TikTok’s parent company, ByteDance, to either divest from their U.S. operations or be excluded from U.S.-based app stores. On January 18, 2025, when TikTok was not able to divest in time, TikTok users on the app received a pop-up at that said, “A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now.” However, the app returned for U.S. users less than twenty-four hours later.
TikTok users have had uninterrupted access to TikTok ever since, and conversations about the future of the app have returned thanks to the recent news of a purchase of TikTok’s U.S. business by Larry Ellison (the co-founder of Oracle Corporation), and others such as Rupert Murdoch, Michael Dell, and private equity firm Silver Lake. ByteDance, TikTok’s current owner, would hold a minority stake below 20% (the maximum allowed by the divest-or-ban law that spurred TikTok’s sale and referred to above, “Protecting Americans from Foreign Adversary Controlled Applications Act”). It is likely that these powerful American investors would then bring on a board of American members, with some members appointed by the Trump administration. Oracle, which currently works with TikTok on data security, is expected to audit the app’s algorithm, which will be “retrained and operated in the United States outside of ByteDance’s control”, as relayed by White House spokesperson Karoline Leavitt.
As it stands currently, TikTok allows users to see content from almost anywhere in the world. Alternatively, this potential U.S. spin-off of TikTok would allow TikTok’s roughly 130 million American users to only access the U.S. version of the app. Whether or not American users will be able to see any content outside made outside the U.S. is unclear.
As of this blog post’s publishing date, there have been no concrete developments surrounding TikTok’s future, and the Chinese government has not officially approved the sale. However, the potential creation of a U.S. spin-off of TikTok leaves many questions unanswered: what type of content will be on this new app? Will American users want to transfer over to a U.S.-only TikTok? TikTok is known for their algorithm; will the new app be able to replicate it? How will creators on TikTok, whether they are American or not, navigate a smaller audience and platform size?
We continue to stay on top of the latest legal developments and have crafted language in our client’s agreements that protect them in case of a future TikTok ban. If you find yourself in need of legal assistance in the areas of digital media, intellectual property or advertising law, or you have questions regarding how your business may be impacted by the TikTok ban, please contact our attorneys here.
