In a significant blow to TikTok, the popular social media platform lost its legal challenge against a law that mandates the company to divest its American operations or face a ban in the United States, effective from January 19, 2025.
As reported by Newsweek, the U.S. Court of Appeals for the District of Columbia Circuit rejected TikTok's appeal on Friday. The law, signed by President Joe Biden in April, set a deadline for Chinese-based ByteDance, the parent company of TikTok, to divest the app due to national security concerns arising from its widespread use across the U.S.
The U.S. government has expressed apprehension that ByteDance, or indirectly the Chinese government, could exploit TikTok's algorithm to manipulate American public opinion or propagate pro-China narratives, particularly on sensitive matters. This concern gained traction following widespread protests on college campuses against Israel after its forces initiated a bombardment of the Gaza Strip in response to the Hamas attack on October 7, 2023, which resulted in approximately 1,200 fatalities.
The panel of three judges, comprising two Republicans and one Democrat, dismissed TikTok's First Amendment arguments. They rejected the notion that any First Amendment rights would prevent the government from restricting the operations of a company, especially one subject to the laws and influence of a foreign power.
The judges also invoked wartime precedent that permits the U.S. to limit foreign ownership of broadcast licenses. They questioned Andrew Pincus, TikTok's lawyer, about the applicability of the law in the event of the U.S. being at war, as per the Associated Press.
A spokesperson for TikTok stated, "The Supreme Court has an established historical record of protecting Americans' right to free speech, and we expect they will do just that on this important constitutional issue." The spokesperson further criticized the ban, stating, "Unfortunately, the TikTok ban was conceived and pushed through based upon inaccurate, flawed and hypothetical information, resulting in outright censorship of the American people. The TikTok ban, unless stopped, will silence the voices of over 170 million Americans here in the US and around the world on January 19th, 2025."
With the court's rejection, ByteDance and TikTok are left with one optionto appeal once more and present their case to the U.S. Supreme Court. This is due to the Court of Appeals' reliance on the First Amendment in its ruling. The Supreme Court would then evaluate the constitutional merits of the ban, potentially setting a precedent for social media and First Amendment rights. If the court agrees to hear the case, it could delay the implementation of the law while the justices deliberate.
However, the law might become obsolete before the Supreme Court gets a chance to review it due to President-elect Donald Trump's changing stance on the ban. Trump, who attempted to ban TikTok during his first term, opposed a ban during his reelection campaign, asserting that he was "going to save TikTok." How he plans to achieve this remains uncertain, as the law signed by Biden provides limited options to reverse the ban. Primarily, Trump would need to persuade both chambers of Congress to support a repeal, which he could then sign into law.
Despite this, the House overwhelmingly voted in favor of the ban, 352-65, while the Senate saw 79 members vote in favor. Some have suggested that Trump's new Department of Justice could simply refuse to enforce the law or penalize Apple and Google for non-compliance.
Should ByteDance decide to comply with the U.S. rulings and divest ownership, several potential buyers are ready, including Trump's former treasury secretary, Steve Mnuchin, who is leading a consortium interested in acquiring the company's U.S. business. The McCourt's Project Liberty initiative also announced that unnamed participants have committed more than $20 billion in capital to purchase TikTok.
Launched in 2016, TikTok quickly became the world's most popular social media platform. With over 100 offices in major cities worldwide, TikTok claimed to have more than 1 billion monthly active users globally in 2021, making it the fastest-growing social media network at the time.
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