Court Upholds TikTok Ban Unless ByteDance Divests: What’s Next?

A federal appeals court has upheld a law mandating TikTok to divest from its China-based parent company, ByteDance, or face a U.S. ban by January 19, 2025. The court rejected TikTok’s claims that the law violates the First and Fifth Amendments, ruling that it aims to protect U.S. citizens from foreign influence and data security risks.

The U.S. government cites concerns about TikTok potentially sharing user data with Beijing or manipulating content. TikTok, however, denies these allegations, arguing there’s no evidence of compliance with Chinese government demands. The company is expected to appeal to the Supreme Court, while ByteDance explores divestment challenges, claiming it’s impossible without compromising TikTok’s algorithm.

The Biden administration initiated the law, but President-elect Donald Trump’s stance remains ambiguous. Lawmakers celebrated the ruling, with some urging ByteDance to accept divestiture. Meanwhile, private investors, including Trump-era officials, have expressed interest in acquiring TikTok’s U.S. operations, with over $20 billion reportedly pledged toward a potential deal.

As the January deadline looms, TikTok’s fate in the U.S. hangs in the balance, raising questions about free speech, foreign ownership, and data privacy.

Source: AP News