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U.S. Supreme Court Upholds Law Requiring ByteDance to Divest TikTok Ownership

by Harikrishnan A
January 18, 2025
in Business, Markets, News, Tech, Trending, World
Reading Time: 3 mins read
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TikTok Challenges U.S. Law, Calling Attention to Other Chinese Firms Like Temu and Shein
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The U.S. Supreme Court ruled on Friday that China-based ByteDance must divest its ownership of TikTok by Sunday, or risk the popular social media platform being banned in the United States. The ruling comes amid growing concerns over national security, with ByteDance having refused to sell the app so far. If the company does not comply, millions of U.S. users could lose access to TikTok, with the possibility of the app being fully shut down.

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Court Supports Biden’s National Security Concerns

In a unanimous decision, the Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, signed into law by President Joe Biden in April. The law requires ByteDance to sell TikTok due to concerns over its data practices and ties to China. The court noted that while TikTok serves as a vital platform for over 170 million Americans, its data collection and potential foreign influence posed a significant security risk.

The Court’s ruling recognized TikTok’s role in providing a space for free expression but reinforced that national security must take precedence. Justices Sonia Sotomayor and Neil Gorsuch added their support in concurring opinions.

Trump’s Involvement in TikTok’s Future

The decision now shifts the focus to President-elect Donald Trump, who has wavered on the issue of TikTok during his political career. Although he initially supported a ban on the app, Trump later reconsidered his position, especially after meeting with Republican donor Jeff Yass, a major investor in ByteDance.

Trump has called for a delay in the law’s implementation, arguing that his administration should have time to work out a political resolution. With Trump’s inauguration set for Monday, just one day after the divestiture deadline, the fate of TikTok could depend on his actions.

National Security Remains a Primary Concern

The Supreme Court’s opinion emphasized that, while data collection is common in today’s digital world, TikTok’s immense user base and its potential susceptibility to foreign control made it a unique threat to national security. The ruling stated, “The sheer size of TikTok and its susceptibility to foreign adversary control, together with the vast swaths of sensitive data the platform collects, poses a national security concern.”

The law also applies to third-party service providers such as Apple and Google, which will face penalties if they continue to support TikTok under ByteDance’s ownership after January 19. This could result in users being unable to access crucial updates, making the app effectively unusable.

White House Reaffirms Support for the Law

White House Press Secretary Karine Jean-Pierre reiterated the administration’s stance, stressing that TikTok should be available to Americans only under new ownership that addresses national security risks. She pointed out that the responsibility for implementing the law would ultimately fall to the next administration.

Criticism and Legal Pushback

The Supreme Court’s ruling has been met with criticism from digital rights advocates. Kate Ruane, from the Center for Democracy and Technology, described the decision as a setback for free expression, saying it undermines the voices of millions of TikTok users worldwide.

TikTok’s legal team, led by attorney Noel Francisco, argued that the law infringes upon First Amendment rights by forcing ByteDance to sell. However, U.S. Solicitor General Elizabeth Prelogar defended the law, emphasizing the national security threat posed by TikTok’s ties to China.

Creators Seek Alternatives

As the threat of a TikTok ban looms, many creators have begun urging their followers to switch to competing platforms like YouTube, Instagram, and Facebook. Meta’s Instagram reportedly held internal meetings to prepare for an influx of TikTok users.

A new Chinese app, RedNote, a TikTok alternative, surged in popularity, indicating that users are already looking for replacements.

Reports suggest that ByteDance is exploring options to keep TikTok operational in the U.S., including the possibility of Elon Musk acquiring TikTok’s U.S. operations. However, no deal has been finalized.

Experts estimate that if ByteDance decides to sell TikTok, the U.S. operations could fetch anywhere from $40 billion to $50 billion.

Tags: TikTokUS
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Harikrishnan A

Aspiring writer. Enjoys gaming, fried chicken and iced tea, preferably all together.

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