TikTok fails to halt law that could lead to US ban

A U.S. appeals court has upheld a law requiring TikTok’s parent company, ByteDance, to sell the platform or face a nationwide ban by early 2025, marking a significant setback for the Chinese tech giant.

The legislation, signed into law by President Joe Biden, mandates that TikTok divest from ByteDance by January 19, 2025, or risk being banned in the U.S. The timing aligns with the day before Donald Trump is set to assume office as president.

In a unanimous decision, the U.S. Court of Appeals for the District of Columbia Circuit ruled the law constitutional, rejecting TikTok’s claim that it violated First Amendment protections. The court stated that the government’s actions were aimed at safeguarding national security, limiting China’s access to U.S. user data, and curbing potential foreign influence.

“The government acted solely to protect freedoms from a foreign adversary and to restrict data collection by that adversary,” the judges wrote.

This ruling places TikTok in a precarious position in one of its largest markets, though the law’s political trajectory remains uncertain. While campaigning, Trump pledged to “save” TikTok, opposing the ban despite national security concerns.

In a staff email, TikTok CEO Shou Zi Chew indicated plans to seek an injunction against the ban while the company pursues a Supreme Court review, according to sources.

The law also requires app store operators like Apple and Google to remove TikTok if ByteDance fails to divest. Additionally, it prohibits web-hosting services from supporting the app post-deadline.

TikTok expressed confidence that the Supreme Court would protect Americans’ right to free speech, criticizing the ban as censorship based on flawed and hypothetical claims.

Attorney General Merrick Garland welcomed the ruling as a critical step in preventing the Chinese government from using TikTok to gather sensitive U.S. data, manipulate content, or undermine national security. Meanwhile, China’s embassy in Washington condemned the law as a “blatant act of commercial robbery” with significant implications for the millions of Americans who use TikTok.

Mike Waltz, a Florida congressman and incoming national security adviser, echoed Trump’s stance on preserving access to TikTok while safeguarding user data. Waltz and other officials, such as Senator Marco Rubio, have long supported stringent measures against the app.

In response, TikTok and ByteDance have filed lawsuits to challenge the law, arguing it infringes on free speech rights and imposes unconstitutional restrictions. TikTok maintains that it operates independently of Beijing and denies sharing user data with the Chinese government. However, U.S. officials assert that ByteDance could be compelled under Chinese law to provide access to U.S. user data and potentially leverage TikTok’s algorithms for propaganda.

The court emphasized the gravity of the national security concerns, citing China’s laws governing its companies and its history of cyber influence. Judges described the platform as a hybrid commercial threat capable of manipulating discourse in ways incompatible with free speech principles.

While TikTok has criticized the classified nature of much of the U.S. government’s evidence, leaving it unable to fully refute allegations, Beijing has also resisted the notion of divestiture. China’s export control laws could block any sale of TikTok’s recommendation algorithms, further complicating compliance with the law.

As the January 2025 deadline approaches, speculation grows over potential political maneuvers. Trump could advocate for repealing the law or instruct the Justice Department not to enforce it, a significant shift from his earlier efforts to ban TikTok in 2020.

The news lifted shares of TikTok’s competitors, with Meta and Snap each seeing a 2% increase, reflecting optimism about reduced competition from the video-sharing platform.