Supreme Court Upholds TikTok Ban Unless Parent Company Divests Ownership

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In a unanimous decision on Friday, the Supreme Court upheld a federal law requiring TikTok’s Chinese parent company, ByteDance, to sell the platform’s U.S. operations before January 19 or face a nationwide ban. The ruling adds urgency to TikTok’s future in the United States, where the app is used by approximately 170 million Americans. TikTok has announced plans to shut down its U.S. operations on Sunday unless the law is overturned or delayed.

President-elect Donald Trump, whose term begins a day after the ban takes effect, is reportedly considering issuing an executive order to delay the enforcement of the law for 60 to 90 days, according to sources cited by The Washington Post.

Reuters reports that the Protecting Americans from Foreign Adversary Controlled Applications Act, set to take effect on January 19, mandates that ByteDance divest TikTok’s U.S. operations due to national security concerns. U.S. officials, including leaders at the Justice Department, argue that TikTok’s data collection practices and its ties to the Chinese Communist Party pose significant risks. ByteDance has countered that divestment is technologically, commercially, and legally infeasible by the given deadline.

In its ruling, the Supreme Court stated: “There is no doubt that TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community. But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary.” The Court also rejected claims that the law violated First Amendment protections, noting that the government’s focus on TikTok does not obligate it to address all similar threats simultaneously.

TikTok’s “Project Texas” initiative, designed to separate U.S. user data from ByteDance, has not satisfied lawmakers or government agencies. The law allows for a 90-day extension of the January 19 deadline if “significant progress” toward a sale is made, though such progress appears unlikely.

President-elect Trump could intervene in several ways, including instructing the Department of Justice not to enforce the ban if TikTok demonstrates meaningful steps to distance itself from ByteDance. Trump could also negotiate a sale to U.S.-based investors or companies, though no such deal is currently in sight.

If the ban proceeds, new downloads of TikTok will be prohibited, and updates for existing users will no longer be available. Although the app would not immediately disappear from users’ devices, the lack of updates would render it increasingly unusable. TikTok users attempting to access the app after a shutdown will be directed to a website explaining the ban.

Additionally, TikTok has informed the Supreme Court that a U.S. shutdown could disrupt global operations, as hundreds of U.S.-based service providers support its international platform. The company has also pledged to allow users to download their data before operations cease.

Outgoing President Joe Biden, who signed the legislation requiring ByteDance to divest TikTok, has indicated that he will not intervene to block the ban. However, his administration has reportedly explored options to extend TikTok’s availability beyond Sunday to shift the final decision to Trump. Senator Ed Markey’s proposal to extend the deadline by 270 days was blocked by Senator Tom Cotton, reflecting ongoing division within Congress over the issue.

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