Investing.com-- TikTok, the widely popular short-video platform, is bracing for a potential shutdown in the United States as early as this Sunday, The Information reported on Wednesday citing sources familiar with the matter.
This development follows heightened scrutiny and increasing pressure from U.S. lawmakers and regulators over concerns about data security and ties to the Chinese government.
The move will shut down TikTok for all U.S. users unless the Supreme Court intervenes to block the ban, according to The Information's report.
Under the plan, people attempting to open the TikTok app will instead see a pop-up message directing them to a website with information about the ban, the report stated.
If implemented, it would be reportedly against a legal mandate that restricts only new downloads of TikTok from Apple store (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) Inc's (NASDAQ:GOOG) Google app stores, allowing existing users to continue accessing the app for a limited period, according to the report
The platform, owned by Chinese tech giant ByteDance, has faced mounting challenges in navigating a delicate geopolitical landscape. Discussions about a potential nationwide ban have accelerated in recent weeks, particularly after state-led restrictions against the app have already been implemented in certain jurisdictions, the report stated.
Analysts suggest that such a ban could have wide-reaching economic implications, due to TikTok’s integral role in marketing strategies and the creator economy.
Given the growing popularity of short video format, the ban could also prove beneficial for Meta Platforms Inc's (NASDAQ:META) platforms like Facebook and Instagram, as well as for Google's YouTube platform.