A federal appeals court dealt a major blow to TikTok on Friday by upholding a law that could result in a ban of the popular social media app in the U.S. as early as January.
The ruling from the U.S. Court of Appeals for the District of Columbia Circuit reaffirmed a law requiring TikTok to sever ties with its Chinese parent company, ByteDance, or face a shutdown by mid-January.
The three-judge panel rejected TikTok’s challenge that the law violated the First Amendment and unfairly singled out the platform.
The court said the government’s actions were aimed at protecting U.S. citizens from the potential national security risks posed by TikTok’s Chinese ownership.
Richard Vogel/AP
Why Is There a Lawsuit Against TikTok?
“The First Amendment exists to protect free speech in the United States,” the judges wrote, “and here, the government acted solely to protect that freedom from a foreign adversary nation and to limit that adversary’s ability to gather data on people in the U.S.”
TikTok and ByteDance are expected to appeal the decision to the U.S. Supreme Court.
The platform has already faced multiple challenges in its attempts to stave off a ban, but this ruling marks a significant setback in its ongoing fight for survival in the U.S. market.
The law, signed by President Joe Biden in April, is the culmination of a years-long saga between TikTok and the U.S. government, which views the app’s data collection practices as a potential national security threat.
J. Scott Applewhite/AP
Is TikTok a National Security Threat?
U.S. officials are particularly concerned that TikTok’s vast database of user information, including sensitive data like viewing habits, could be accessed by the Chinese government, potentially allowing Beijing to influence public opinion and shape content through TikTok’s proprietary algorithm.
Despite ongoing concerns, the government has yet to present evidence that TikTok has directly handed over user data to the Chinese government or manipulated content for political purposes.
TikTok has consistently denied any improper data sharing or content manipulation, arguing that the law’s premise is based on speculative, future risks rather than any substantiated wrongdoing.
The legal battle took a new turn when President Donald Trump, who tried to ban TikTok during his first term, expressed opposition to the app’s shutdown ahead of the 2024 election.
He said he now supports efforts to “save” TikTok and prevent its ban.
His position adds a layer of political complexity to the already contentious situation, with the Justice Department under his administration expected to be responsible for enforcing the law if TikTok’s appeal fails.
TikTok has tried to reassure lawmakers and regulators by investing over $2 billion in securing U.S. user data, but critics remain skeptical.
At the heart of the dispute is whether TikTok can fully separate itself from its Chinese parent.
The law demands that ByteDance divest its stake in the app to eliminate any perceived Chinese influence.
However, TikTok’s attorneys argue that such a separation is practically impossible, as the app’s highly valuable algorithm — the key to its viral success — could be blocked by Chinese authorities if sold off.
How Much Are TikTok’s U.S. Operations Valued At?
Despite these challenges, TikTok’s U.S. business remains buoyant.
Investors such as former Treasury Secretary Steven Mnuchin and billionaire Frank McCourt have expressed interest in purchasing the platform, with McCourt’s Project Liberty initiative assembling a consortium of investors willing to commit more than $20 billion to buy TikTok’s U.S. operations.
The ruling also consolidates TikTok’s case with two other lawsuits brought by content creators, including conservative influencers aligned with Based Politics, a nonprofit advocacy group.
The lawsuits challenge the law’s potential to stifle free expression, with TikTok covering legal costs for the creators.
If the appeals court ruling stands, the next chapter in the TikTok saga will likely unfold in the Supreme Court, where legal experts predict a contentious debate over the intersection of national security and free speech.
If the government prevails, enforcement would fall to the Department of Justice, which could impose fines on app stores that continue to offer TikTok, as well as internet service providers that host the platform.
This article contains additional reporting from The Associated Press.
