TikTok has begun restoring service to the app in the US after Donald Trump said he would sign an executive order pausing its ban.
A law signed by President Joe Biden last April required ByteDance, TikTok‘sChina-based parent company, to sell the app to a non-Chinese owner by Sunday or face a ban.
Some users reported that they lost access on Saturday night, and Americans opening the app on Sunday have been greeted with a message saying they “can’t use” TikTok “for now”.
But in a post on Truth Social ahead of his inauguration, Mr Trump said he would issue an executive order handing the app an extension to find a new owner.
Image: TikTok users in the US were unable to use the app on Sunday. Pic: Kirsty Hickey
“I’m asking companies not to let TikTok stay dark,” the president-elect wrote, adding the order will allow time “so that we can make a deal to protect our national security”.
He then confirmed that “there will be no liability for any company that helped keep TikTok from going dark before my order” and said: “Americans deserve to see our exciting Inauguration on Monday, as well as other events and conversations.”
TikTok later said it had started restoring service on Sunday, thanking the president for clarifying to service providers “that they will face no penalties providing TikTok”.
It added: “It’s a strong stand for the First Amendment and against arbitrary censorship. We will work with President Trump on a long-term solution that keeps TikTok in the United States.”
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Ahead of the ban coming into effect, White House press secretary Karine Jean-Pierre called TikTok’s plans to shut down the app a “stunt” and said actions enforcing the ban would “fall to the next administration”.
Mr Trump also indicated on Truth Social what a possible deal could look like, saying he would prefer the US “to have a 50% ownership position in a joint venture” with ByteDance or a new owner.
“Without US approval, there is no TikTok,” he said. “With our approval, it is worth hundreds of billions of dollars – maybe trillions.”
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1:56
Why was TikTok getting banned in the US?
On Saturday, the president-elect told NBC News‘ Meet The Press moderator Kristen Welker that TikTok would “most likely” be given a 90-day pause from the ban to find a new owner.
Under the bipartisan law on TikTok – signed by Mr Biden – the president can grant a one-time extension of 90 days under three conditions:
• There is a path to divestiture of the app
• There is “significant progress” toward executing a sale
• There are in place “the relevant binding legal agreements to enable execution of such qualified divestiture during the period of such extension”
No legal agreements on the sale of TikTok to a non-Chinese owner have been made public, and Mr Trump did not say on Saturday if he was aware of any recent progress toward a sale.
CNBC later reported Perplexity AI made a bid for the app’s parent company on Saturday to allow it to merge with TikTok US and create a new entity, which would also include New Capital Partners.
During his first term in the White House, Mr Trump attempted to ban TikTok as well as the Chinese-owned messaging app WeChat but was blocked by the courts. It was later revoked by Mr Biden.
Last year, he briefly met with the app’s chief executive Shou Zi Chew, who will attend the inauguration on Monday.
He’s expected to sit with fellow tech executives Elon Musk, Mark Zuckerberg and Jeff Bezos, a Trump transition official told NBC.
Tesla’s board has signed off a $29bn (£21.8bn) share award to Elon Musk after a court blocked an earlier package worth almost double that sum.
The new award, which amounts to 96 million new shares, is not just about keeping the electric vehicle (EV) firm’s founder in the driving seat as chief executive.
The new stock will also bolster his voting power from a current level of 13%.
He and other shareholders have long argued that boosting his interest in the company is key to maintaining his focus after a foray into the trappings of political power at Donald Trump‘s side – a relationship that has now turned sour.
Musk is angry at the president’s tax cut and spending plans, known as the big beautiful bill. Tesla has also suffered a sales backlash as a result of Musk’s past association with Mr Trump and role in cutting federal government spending.
Image: Tesla’s Elon Musk is seen on stage during an event in Shanghai Pic: Reuters
The company is currently focused on the roll out of a new cheaper model in a bid to boost flagging sales and challenge steep competition, particularly from China.
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The headwinds have been made stronger as the Trump administration has cut support for EVs, with Musk admitting last month that it could lead to a “few rough quarters” for the company.
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3:31
Could Trump cost Tesla billions?
Tesla is currently running trials of its self-driving software and revenues are not set to reflect the anticipated rollout until late next year.
Musk had been in line for a share award worth over $50bn back in 2018 – the biggest compensation package ever seen globally.
But the board’s decision was voided by a judge in Delaware following a protracted legal fight. There is still a continuing appeal process.
Earlier this year, Tesla said its board had formed a special committee to consider some compensation matters involving Musk, without disclosing details.
The special committee said in the filing on Monday: “While we recognize Elon’s business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging… we are confident that this award will incentivize Elon to remain at Tesla”.
It added that if the Delaware courts fully reinstate the 2018 “performance award”, the new interim grant would either be forfeited or offset to ensure no “double dip”.
The new compensation package is subject to shareholder approval.
Banks will still most likely have to fork out over discretionary commissions – a type of commission for dealers that was linked to how high an interest rate they could get from customers.
The FCA, which banned the practice in 2021, is currently consulting on a redress scheme but the final bill is unlikely to exceed £18bn. Overall, the result has been better than expected for the banks.
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1:12
Car finance ruling explained
Lloyds, which owns the country’s largest car finance provider Black Horse, had set aside £1.2bn to cover compensation payouts.
Following the judgment, the bank said it “currently believes that if there is any change to the provision, it is unlikely to be material in the context of the group”.
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0:58
‘Don’t use a claims management firm’
The judgment released some of the anxiety that has been weighing over the Bank’s share price.
Jonathan Pierce, banking analyst at Jefferies, said the FCA’s prediction was “consistent with our estimates, and most importantly, we think it largely de-risks Lloyds’ shares from the ‘motor issue'”.
Bank stocks have responded robustly to each twist and turn in this tale, sinking after the Court of Appeal turned against them and jumping (as much as 8% in the case of Close Brothers) when the Supreme Court allowed the appeal hearing.
Concerns about this volatility motivated the Supreme Court to deliver its judgment late in the afternoon so that traders would have time to absorb the news.
Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.
In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.
“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.
The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.
It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.
The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.
What motorists should do next
The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.
Anyone who has already complained does not need to do anything.
The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”
Its website advises drivers to complain to their finance provider first.
If you’re unhappy with the response, you can then contact the Financial Ombudsman.
The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.
It has warned motorists that doing so could end up costing you 30% of any compensation in fees.
The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.
The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.
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2:34
Car finance scandal explained
The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.
Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.
In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.
This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.
It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.
Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.
“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”