TikTok faces a potential shutdown in the US by Sunday, as the deadline for its Chinese owner, ByteDance, to divest or cease operations nears. This follows the passing of the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) in April, which gives TikTok until then to comply.
Despite the looming deadline, there may be a last-minute reprieve, with US officials signalling flexibility as the app is used by 170 million Americans. A case before the US Supreme Court challenges the ban, arguing it violates freedom of speech.
If the shutdown proceeds, TikTok will be removed from US app stores, and tech firms will be prohibited from hosting or updating the app. Beyond the millions of users impacted, the case sets a significant precedent for how the US could treat other foreign-owned apps, such as CapCut and WeChat. Stay tuned as the legal battle unfolds.
For more investing education and to learn to invest, download the Pluto app for free and get started today. 🔭