Chinese-owned social media app TikTok, with over 170 million users in the United States, is closer to a potential ban after a panel of federal judges upheld a law requiring the app to be sold or removed from the U.S. market.
The ruling, issued Friday by the U.S. Court of Appeals for the District of Columbia Circuit, rejected TikTok’s appeal to overturn the law.
The three-judge panel unanimously ruled that the law was “carefully crafted to deal only with control by a foreign adversary” and did not violate First Amendment protections.
The decision was motivated by the Congress’s concern over national security threats posed by TikTok’s ownership under ByteDance, citing the potential for the Chinese government to access U.S. user data or spread propaganda.
The Case Background
The law, signed in April 2024, mandates that TikTok must be sold to a non-Chinese company by January 19, 2024, or face a nationwide ban.
Lawmakers have argued that China’s data laws and oversight of private companies pose a risk to U.S. security, although no public evidence of misuse has been presented.
TikTok, however, consistently denied any wrongdoing, with spokesperson Michael Hughes stating, “This law is based on inaccurate, flawed, and hypothetical information.”
The company asserts that a sale is impossible due to restrictions imposed by the Chinese government, adding that a ban would represent “outright censorship of the American people.”
TikTok’s appeal to the Supreme Court, which it anticipates will rule differently, is its next legal step.
“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,” Hughes said.
Implications for Users and the Economy
The app have become a vital platform for creators and small businesses.
A ban would force tech companies like Apple and Google to remove TikTok from their app stores, which could disrupt content creators and businesses that rely on the platform.
Chief Judge Sri Srinivasan acknowledged TikTok’s popularity in the ruling but stressed that Congress had weighed the risks.
“Without a sale, many Americans could lose access to an outlet for expression, a source of community, and even a means of income,” he wrote.
The decision comes as President-elect Donald Trump, set to take office on January 20, 2024, has expressed support for TikTok.
However, it remains unclear how he might address the issue. Trump’s spokesperson has promised a plan to “rescue the app,” but anti-China sentiment in Congress could limit his options.
Experts suggest a reprieve may require Trump’s administration to refrain from enforcing the law, though this would leave companies like Apple and Google in a precarious position.
So far, free speech advocates, including the American Civil Liberties Union, criticized the ruling, calling it a “major blow to freedom of expression online.”
Meanwhile, rivals like Meta and YouTube may benefit from a potential ban, with experts predicting “major upheaval” in the social media market.
TikTok’s future now rests on its Supreme Court appeal or a political resolution.
ByteDance would face major challenges to facilitate a sale, including technical, financial, and regulatory challenges, with estimates valuing the app at over $200 billion.
Attorney General Merrick Garland welcomed the ruling as “an important step in blocking the Chinese government from weaponizing TikTok.”
As the January deadline approaches, TikTok users, businesses, and its parent company await clarity on whether the app will be sold, banned, or granted a reprieve.
