Federal court upholds TikTok ruling, forcing it to sell or face US ban by 2025

TikTok’s fate in the United States has been thrown into disarray again after a federal appeals court upheld a decision requiring the social media app’s Chinese parent company, ByteDance, to sell its US operations or face a nationwide ban.

The decision, which represents a significant escalation in the years-long standoff between TikTok and the US government, marks a pivotal moment in the platform’s operations in one of its largest markets.

ByteDance now has until 19 January 2025 to comply with the ruling. If it fails, the app will no longer be available in the United States, potentially cutting off its 170 million American users — roughly half the country’s population.

TikTok has vowed to appeal the decision to the Supreme Court, arguing that the law infringes on free speech rights and unfairly singles out the platform.

A spokesperson for TikTok described the ruling as being based on “inaccurate, flawed, and hypothetical information,” warning that a ban would “silence the voices of over 170 million Americans.”

This legal and political battle has its roots in longstanding US national security concerns. Lawmakers argue that TikTok’s Chinese ownership poses a risk, suggesting that Beijing could exploit the platform to collect data on American users or manipulate its algorithms to influence public opinion.

Critics point out that no evidence has been presented to show that ByteDance or the Chinese government has engaged in such activities.

The company argues that it operates independently of Chinese government influence, pointing to its operational headquarters in Singapore and Los Angeles and its data-handling partnership with US-based Oracle.

“TikTok’s millions of users will need to find alternative media of communication,” said Judge Douglas Ginsburg, who penned the appeals court decision. He added that the burden placed on users stems from “China’s hybrid commercial threat to US national security” rather than overreach by the US government.

This latest ruling builds on legislative efforts that culminated in April 2023, when President Joe Biden signed a bill requiring ByteDance to divest from TikTok or risk a ban.

The Protecting Americans from Foreign Adversary Controlled Applications Act enjoyed bipartisan support and reflects Washington’s growing unease about Beijing’s potential influence in the tech sector.

TikTok hopes to overturn the law on constitutional grounds by taking its case to the Supreme Court, arguing that the ban constitutes censorship.

The case has garnered support from digital rights organisations, including the American Civil Liberties Union, which described the law as “censorship, plain and simple.”

Adding to the intrigue is Donald Trump’s return to the presidency, with his inauguration scheduled for 20 January 2025 — just one day after the ban is set to take effect.

Trump’s position on TikTok has evolved significantly. While he sought to ban the app during his first term, he pledged during his recent campaign to “save TikTok.”

Read more: What does Big Tech stand to gain or lose under a second Trump presidency?

However, experts suggest reversing the ban would require congressional approval, a politically fraught prospect given the bipartisan support for tough measures against China.

The implications of a TikTok ban extend beyond geopolitics. Creators and businesses who rely on the platform for income and audience engagement face an uncertain future.

While rival platforms like Instagram and YouTube stand to benefit, industry analysts say that TikTok’s sophisticated algorithm and community-driven culture cannot be easily replicated.

TikTok has already been banned in countries like India and Afghanistan, while nations including Australia and Canada have imposed restrictions on its use by government employees.