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Investors Eye TikTok App Store Uncertainty

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U.S. lawmakers have issued a directive to Apple Inc. (NASDAQ:AAPL) and Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google to prepare for the removal of ByteDance-owned TikTok from their app stores by Jan. 19.

What Happened: This move follows a federal appeals court ruling that requires ByteDance to divest TikTok in the U.S. or face a ban.

Representatives John Moolenaar and Raja Krishnamoorthi have urged TikTok CEO Shou Zi Chew to sell the app, which is used by 170 million Americans, reported Reuters.

“Congress has acted decisively to defend the national security of the United States and protect TikTok’s American users from the Chinese Communist Party. We urge TikTok to immediately execute a qualified divestiture,” the lawmakers wrote.

See Also: Google Wants FTC To Dismantle Microsoft’s Exclusive Cloud Hosting Deal With OpenAI: Report

Why It Matters: The push for TikTok’s removal comes after a series of legal and political challenges. Earlier this month, TikTok lost a court appeal against a U.S. ban.

The ruling upheld legislation requiring TikTok to sell to a non-Chinese owner or face removal from U.S. app stores by Jan. 19, 2025.

On Monday, ByteDance and TikTok sought an emergency block on the law pending a U.S. Supreme Court review.

The Department of Justice stated that while the ban wouldn’t immediately stop current users from accessing TikTok, it would eventually make the app unusable due to lack of support.

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In response on Thursday, TikTok warned that without a court order, the app would vanish from stores on Jan. 19, affecting half of the U.S. population.

Meanwhile, President-elect Donald Trump has pledged to prevent the ban, and Senator Josh Hawley expressed hope for a sale, citing concerns over Chinese oversight.

Previously in October, leaked documents revealed that TikTok was aware of the potential harm its algorithm could inflict on children. This revelation was part of a multi-state investigation into the platform’s allegedly addictive nature.

There have been speculations about potential buyers for TikTok. In September, it was reported reported that TikTok was strengthening ties with Amazon.com Inc., sparking rumors of a possible acquisition.

Check out more of Benzinga’s Consumer Tech coverage by following this link.

Read Next:

  • How To Use Apple Watch As A Digital Key For Your Tesla Car

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock

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