President Donald Trump on Monday signed an executive order that put enforcement of the TikTok ban on hold for 75 days. The move marks the latest twist in the saga that will decide the fate of a rival to Facebook parent Meta Platforms and Snapchat parent Snap.
In a document posted on the White House website late Monday, Trump said he was instructing the attorney general to avoid enforcing the ban for 75 days to "allow my Administration an opportunity to determine the appropriate course forward in an orderly way that protects national security while avoiding an abrupt shutdown of a communications platform used by millions of Americans."
TikTok temporarily closed off its services to its 170 million U.S. users late Saturday and into Sunday, complying with a U.S. law that banned the short video app if its Chinese parent ByteDance didn't divest the business by a Sunday deadline.
The Supreme Court upheld the law – passed by Congress last spring – on Friday. But Trump posted on social media Sunday that he planned to sign an executive order to extend the period of time before the law's prohibition takes effect.
TikTok restored service on Sunday, thanking Trump in a press statement for "providing the necessary clarity and assurance to our service providers that they will face no penalties."
However, TikTok is still not available for download on app stores from Apple and Google as of Tuesday afternoon. Apple's App Store shows a notice that TikTok and other ByteDance apps are no longer available in the U.S. That means TikTok users with the app already downloaded can still access it. But TikTok is unable to send out updates or add new users.
What's Next For TikTok Ban?
Meanwhile, Trump said he will use the extra time to review options for TikTok.
"I intend to consult with my advisors, including the heads of relevant departments and agencies on the national security concerns posed by TikTok, and to pursue a resolution that protects national security while saving a platform used by 170 million Americans," Trump's executive order said. "My Administration must also review sensitive intelligence related to those concerns and evaluate the sufficiency of mitigation measures TikTok has taken to date."
Trump wrote on social media Sunday that he "would like the United States to have a 50% ownership position in a joint venture" for TikTok.
The feasibility of that type of arrangement remains to be seen. The Chinese Foreign Ministry said Monday that companies can make their own decisions on operations and acquisitions, according to the Wall Street Journal. That was different from that government's previous position that it would block any forced sale of TikTok, the WSJ report noted.
Impact For Meta Stock, Snap
Meanwhile, the potential TikTok ban could have implications for Meta's Instagram and Facebook, as well as Snap's Snapchat. Analysts expect that the time users spend on TikTok, as well as advertising dollars, would land with other apps if TikTok does go dark.
Meta, notably, rolled out a new video editing app on Sunday. TikTok offers its own video-editing app called CapCut.
On the stock market today, Meta stock gained a fraction to close at 616.46, matching gains for the broader market. Snap lost 2.8% to close at 10.56.
Investors appear to be back in wait-and-see mode with the TikTok ban's enforcement delayed. Advertisers are likely waiting for greater clarity as well, according to analysts.
"As for the immediate term, we don't expect much to change in the eyes of advertisers, though we would expect advertisers collectively to put backup plan in place, if they don't already," Stifel analyst Mark Kelley wrote to clients late Monday.
