TikTok fails to halt law that could lead to US ban

On Friday, a U.S. appeals court confirmed a law that mandates ByteDance, the parent company of TikTok, to either sell the platform or risk being banned next year. This decision marks a significant setback for the Chinese company that operates the video-sharing app.

This law, which President Joe Biden signed earlier this year, requires TikTok to be prohibited in the United States unless it separates from its parent company by January 19, 2025 — the day before Donald Trump takes office as president again.

The US Court of Appeals for the District of Columbia Circuit ruled unanimously that the law, which addresses a sensitive national security concern related to China and has garnered widespread bipartisan backing in Congress, is constitutional. The court found that it does not infringe on First Amendment rights to free speech, contrary to TikTok's arguments.

The committee stated that “the government took action solely to safeguard that freedom against threats from a foreign adversary and to restrict that adversary’s capacity to collect information on individuals in the United States.”

This choice places TikTok in a difficult spot in one of its largest markets, even though the future of the law is unclear. While campaigning for re-election, Trump expressed his opposition to banning the platform and vowed to protect the app.

In a message sent to employees, TikTok's CEO Shou Zi Chew stated that the company plans to "pursue a legal action against the ban while awaiting a decision from the US Supreme Court," as reported by someone who is knowledgeable about the situation.

According to the law, Apple and Google must take down the social media app, which is extremely popular with younger Generation Z users, from their app stores unless a sale occurs before the January deadline. Additionally, the app is prohibited from being hosted on web services.

After the ruling, TikTok commented, "The Supreme Court has a long history of safeguarding the right to free speech for Americans, and we believe they will uphold this fundamental constitutional principle."

"Sadly, the decision to ban TikTok was made and implemented based on incorrect, misguided, and speculative information, leading to direct censorship of the American public."

US Attorney General Merrick Garland referred to the decision as a significant move to prevent the Chinese government from using TikTok to gather sensitive data on millions of Americans, secretly influence the content shown to US users, and threaten our national security.

The Chinese embassy in Washington expressed that the legislation would significantly affect the online social network utilized by half of the American population, describing it as a “clear case of commercial theft.”

The Trump transition team didn't reply to a request for a statement. However, Mike Waltz, a lawmaker from Florida and the incoming US national security adviser, mentioned on Fox Business Network that Trump is interested in keeping TikTok available.

"Waltz, who has previously advocated for a ban on TikTok, stated that it's crucial for Americans to be able to use the app, but we must also safeguard our data."

Waltz stated that Trump's position is to "enable the American public to fully enjoy an excellent product while also safeguarding their data." Additionally, Marco Rubio, the Florida senator known for his tough stance on China, whom Trump has proposed as his secretary of state, has also backed the idea of banning TikTok.

In May, TikTok and its parent company, ByteDance, filed a lawsuit against the US government to prevent the bill from being enacted, arguing that it is unconstitutional and infringes upon First Amendment rights related to free speech. TikTok maintains that the Chinese government has no authority over the app and that it has not shared any user data with Beijing. The company's legal team also contended that issues regarding propaganda on the platform should be addressed through transparency requirements instead of imposing an outright divestment or ban.

U.S. officials contend that ByteDance might be required to provide personal information about the 170 million TikTok users in the United States to the government in Beijing due to Chinese regulations. They also believe that the app's algorithms and content moderation could be used to disseminate propaganda and false information. Earlier this year, the Department of Justice claimed that some data from U.S. TikTok users had been kept in China.

On Friday, the court stated that the government's reasons for the law related to national security were strong. According to the judges, China presents a notably serious mixed commercial threat due to the laws that regulate Chinese businesses. They also noted that Beijing leverages its cyber abilities to enhance its influence efforts globally.

The judges indicated that China has strategically set itself up to influence conversations on TikTok for its own purposes. This ability contradicts the principles of free speech.

The judges acknowledged that their decision has major consequences for the app and its users. However, they contended that the responsibility lies with China’s mixed commercial dangers to US national security, not the US government, which had been trying to work with TikTok over several years to seek a different solution.

TikTok has expressed concern that a significant portion of the evidence presented by the US government is classified, which prevents them from effectively countering the accusations against them. They also stated that selling the company would be "impractical."

Beijing has clearly stated that it won't permit ByteDance to sell off the recommendation algorithm of the platform, and it has export control regulations in place that would prevent such a separation. Additionally, Biden may choose to prolong the deadline for either banning or selling it by another 90 days.

Prior to his re-election, Trump stated that he wouldn't prohibit TikTok when he returns to the White House. He made this move to maintain “competition” in a market largely controlled by Mark Zuckerberg’s Meta, which he has referred to as an “enemy of the people.”

It's uncertain what steps he could take to rescue the app. Specialists have proposed that he might ask Congress to overturn the law or urge the Department of Justice not to enforce it.

Any action taken now would mark a complete reversal from 2020, when then-President Trump signed an executive order to prohibit the app in the United States and instructed ByteDance to sell off its American holdings and delete all data TikTok had gathered in the country within 90 days. However, that order was halted by the courts and was eventually overturned by President Biden.

Stock prices for TikTok competitors Meta and Snap, which have faced revenue challenges due to the app's swift growth in recent years, both increased by approximately 2 percent following the announcement.