A federal appeals court has upheld legislation requiring Chinese-owned ByteDance to sell TikTok's US operations by January 19, 2025, or face a nationwide ban. The ruling deals a major blow to the social media platform used by 170 million Americans.
The three-judge panel, consisting of appointees from both Republican and Democratic administrations, determined the law was carefully crafted to address national security concerns regarding Chinese control of the popular app. The court acknowledged the ruling would force millions of TikTok users to seek alternative platforms if ByteDance fails to divest.
TikTok immediately announced plans to appeal to the Supreme Court, arguing the law violates First Amendment rights. "The ban would result in outright censorship of the American people," the company stated.
The Justice Department maintains that Chinese ownership of TikTok presents serious security risks, citing concerns about access to Americans' personal data and potential manipulation of content. TikTok has consistently denied sharing user data with Chinese authorities.
The law prohibits app stores from offering TikTok and bars internet hosting services from supporting the platform unless ByteDance sells its US operations. President Biden could grant a 90-day extension of the January deadline if ByteDance shows progress toward divestiture.
Civil rights groups, including the American Civil Liberties Union, criticized the ruling as setting a "flawed and dangerous precedent" for free speech. The ACLU's National Security Project called the potential ban a clear violation of constitutional rights.
ByteDance, valued at $268 billion in December 2023, faces major technical and commercial challenges in executing a forced sale of its US operations within the tight timeframe. The company maintains that such a divestiture would be technologically and legally impossible to achieve.
Unless overturned by the Supreme Court, the ruling places TikTok's fate first in President Biden's hands regarding a possible deadline extension, and then with the incoming administration following the January 2025 transition of power.
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