The decision to restore the app follows assurances from US authorities that tech companies would not face penalties for hosting it.

The widely popular social media platform, owned by Chinese firm ByteDance, was initially removed in January when Apple and Google complied with legal requirements barring its distribution. 

However, former President Donald Trump, who returned to office this year, issued an executive order on 20 January, delaying the enforcement of the ban by 75 days. 

The goal was to provide ByteDance more time to negotiate the sale of TikTok’s US operations to a company outside Chinese ownership, as mandated by law.

Attorney General Pam Bondi later sent a letter to Apple, confirming that hosting TikTok would not lead to financial penalties. This clarification enabled the app’s return to digital storefronts, alongside ByteDance’s other applications, including video editor CapCut and social platform Lemon8.

Despite the temporary extension, the future of TikTok in the US is still uncertain. Trump has proposed a scenario in which the US government could hold a 50% stake in TikTok through a joint venture with American technology firms. 

Meanwhile, companies such as Oracle and Microsoft have shown interest in acquiring the platform.

The issue over TikTok has been ongoing for years, with US officials noting concerns about data security and the potential risks of Chinese government influence over American user data. 

The Biden administration previously signed a law in April 2024 requiring ByteDance to divest TikTok’s US operations or face a complete ban. The Supreme Court upheld this ruling on 17 January, reinforcing pressure on ByteDance to find a buyer.

TikTok has shown gratitude to Trump for the reprieve, stating, “President Trump has provided the necessary clarity and assurance to our service providers that they will face no penalties for providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.”

Even with the uncertainty, rival social media platforms have been making strategic moves to capitalise on TikTok’s vulnerability. Platforms such as X and Bluesky have introduced vertical video features, while Meta has developed a video editing tool to compete with CapCut.

Analysts suggest that TikTok’s return to app stores does not guarantee its long-term presence in the US. The 75-day extension only buys ByteDance more time to negotiate a deal, and the outcome of ongoing discussions will ultimately determine the platform’s fate in the American market.

But there is a price. Trump said he wants the popular social media app to be at least half owned by U.S. investors.

TikTok stopped working for its 170 million American users late on Saturday before a law shutting it down on national security grounds took effect on Sunday.

U.S. officials had warned that under Chinese parent company ByteDance, there was a risk of Americans’ data being misused.

Trump said he would

“extend the period of time before the law’s prohibitions take effect, so that we can make a deal to protect our national security.”

“I would like the United States to have a 50% ownership position in a joint venture. By doing this, we save TikTok, keep it in good hands and allow it to say up,” he wrote on Truth Social.

Trump said the executive order would specify there would be no liability for any company that helped keep TikTok from going dark before his order.

Trump had earlier said he would most likely give TikTok a 90-day reprieve from the ban after he takes office, a promise TikTok cited in a notice posted to users on the app.

“A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned,” a message notified users of TikTok, which disappeared from Apple (AAPL.O), opens new tab and Google app stores late on Saturday.

Even if temporary, the unprecedented shutdown of TikTok is set to have a wide-ranging impact on U.S.-China relations, U.S. politics, the social media marketplace and millions of Americans who depend on the app economically and culturally.

The U.S. has never banned a major social media platform. The law passed overwhelmingly by Congress gives the incoming Trump administration sweeping authority to ban or seek the sale of other Chinese-owned apps.

Reuters reported that other apps owned by ByteDance, including video editing app CapCut and lifestyle social app Lemon8, were also offline and unavailable in U.S. app stores as of late Saturday.

It was not clear if any U.S. users could still access the app, but it was no longer working for many users, and people seeking to access it through a web application were met with the same message that TikTok was no longer working.

[News Source: Reuters. Image Credit]

Starting August 5, 2024, CapCut will no longer offer free cloud storage for its users.

Users who previously enjoyed 1 GB of free cloud storage will now have to subscribe to one of CapCut’s new storage plans to continue using cloud storage features. 

The available plans are priced at $2.49 per month for 100 GB and $7.49 per month for 1000 GB. This change means that creators will need to either purchase additional storage or find alternative methods to store and share their creative projects.

In addition to the changes in storage, CapCut will also reduce the number of free collaborators allowed on an account. Currently, users can collaborate with up to five people for free. 

However, starting in August, this number will be reduced to just two. Users wishing to collaborate with more people will need to upgrade to the Team Tier package. 

A company spokesperson explained, “From August 5th, users will be able to add one collaborator to their CapCut account for free. If users want to collaborate with more people, CapCut offers the Team Tier package, which allows users to collaborate with more user accounts to use the same cloud space.”

These updates have been communicated to users over the past few days through notifications, ensuring that everyone is aware of the upcoming changes. 

Users can still download their existing projects and files, but they will not be able to upload new ones or make changes unless they subscribe to a storage plan.

CapCut is currently enhancing its service offerings and ensuring sustainable growth. However, it also aligns with other industry trends. 

Earlier this year, YouTube expanded its rival app, Create, to 13 new markets, including Brazil, Spain, Canada, Australia, and Hong Kong, indicating a competitive industry in the video editing space.