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US TikTok Ban to be Upheld if a Deal Isn’t Finalized by Current Deadline

Posted on July 24, 2025
Source: Social Media Today – Latest News by Andrew Hutchinson. Read the original article

TL;DR Summary of U.S. Government Plans to Potentially Ban TikTok if Sale Deal Fails

The U.S. government is preparing to ban TikTok in America if a sale to a U.S. entity is not finalized by the September 17th deadline. Commerce Secretary Howard Lutnick emphasized that Chinese control cannot persist over TikTok on American phones. The sale must include transfer of the app’s algorithm and source code, which remains a major sticking point. Without a deal, the future of TikTok in the U.S. appears uncertain, with potential bans possibly spreading to other regions.

Optimixed’s Overview: Critical Deadline Looms Over TikTok’s U.S. Future Amid Sale Negotiations

Key Developments in TikTok’s Potential U.S. Ban

The U.S. government, represented by Commerce Secretary Howard Lutnick, has announced plans to enforce a full ban on TikTok if the company’s sale to a U.S.-based entity is not completed by the current September 17th deadline. This deadline follows several extensions granted by the Trump administration under the executive order related to foreign adversary-controlled apps.

Challenges in the TikTok Sale Negotiations

  • Algorithm Control: A significant barrier is the Chinese government’s refusal to negotiate on transferring TikTok’s algorithm source code, which is critical to the app’s operation.
  • Deal Uncertainty: After a key U.S. investor recently withdrew from the proposed consortium, the future of the deal remains unclear.
  • Potential Alternatives: TikTok has denied rumors of developing a U.S.-only version as a backup plan.

Implications of a TikTok Ban

If the sale fails and TikTok is banned in the U.S., it could set a precedent for other countries to follow suit, particularly due to concerns over misinformation and foreign influence through the platform. The evolving situation highlights tensions around data security, national interests, and technological sovereignty.

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