A US federal appeals court on Friday upheld a law requiring Chinese social media platform TikTok in the country by early next year or face a ban. The decision is a complete win for the Justice Department and opponents of the Chinese-owned app and a devastating blow to ByteDance, Reuters said.
Judges Sri Srinivasan, Neomi Rao and Douglas Ginsburg considered the legal challenges brought by TikTok and users against the law that gives ByteDance until January 19 to sell or divest TikTok's US assets or face a ban. The decision -- unless the Supreme Court reverses it -- puts TikTok's fate in the hands of first President Joe Biden on whether to grant a 90-day extension of the January 19 deadline to force a sale and then to President-elect Donald Trump, who takes office a day later.
The ruling now increases the possibility of an unprecedented ban of the social media app reportedly used by 170 million US citizens. The appeals court said the law was the culmination of extensive, bipartisan action by the Congress and by successive presidents. It was carefully crafted to deal only with control by a foreign adversary, and it was part of a broader effort to counter a well-substantiated national security threat posed by the PRC (People's Republic of China).
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Donald Trump, who unsuccessfully tried to ban TikTok during his first term in 2020, said before the November presidential election he would not allow the ban on TikTok.There was no immediate comment from the Justice Department or TikTok on the decision.
The court acknowledged its decision would lead to TikTok's ban on Jan. 19 without an extension from Biden."Consequently, TikTok's millions of users will need to find alternative media of communication," Reuters quoted the court as saying, which was because of China's "hybrid commercial threat to national security, not to the US Government, which engaged with TikTok through a multi-year process in an effort to find an alternative solution."
TikTok ban in US: The story so far
The Justice Department says under Chinese ownership, TikTok poses a serious national security threat because of its access to vast personal data of Americans, asserting China can covertly manipulate information that Americans consume via TikTok.
ByteDance, backed by Sequoia Capital, Susquehanna International Group, KKR & Co, and General Atlantic, among others, was valued at $268 billion in December 2023 when it offered to buy back around $5 billion worth of shares from investors, Reuters reported at the time. The law prohibits app stores like Apple and Alphabet's Google from offering TikTok and bars internet hosting services from supporting TikTok unless ByteDance divests TikTok by the deadline.
However, because of the platforms expansive reach, Congress and multiple Presidents determined that divesting it from (China's) control is essential to protect our national security."He added that "Because the record reflects that Congresss decision was considered, consistent with longstanding regulatory practice, and devoid of an institutional aim to suppress particular messages or ideas, we are not in a position to set it aside."
