A federal appeals court upheld the law ordering China-based ByteDance to sell TikTok or face a U.S. ban.
The United States Court of Appeals in Washington, D.C., rejected TikTok’s argument that the ban is unconstitutional and violates the First Amendment rights of the 170 million Americans who use the social media platform.
The unanimous ruling by the three-judge panel cited national security concerns.
The opinion states that because of the platform’s considerable reach, Congress and multiple Presidents have determined that “divesting it from the PRC’s control is essential to protect our national security.”
In April, President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act into law after both Republican and Democratic members of Congress voiced their concerns, which are related to TikTok’s alleged connections to the Chinese government, as the reason to ban the platform in the United States.
However, much of the government’s information in the case has been redacted and hidden from the public and the two companies.
This decision comes as President-elect Donald Trump prepares for his inauguration on Jan 20, 2025, only 45 days away.
Advancing American Freedom Founder and Former Vice President Mike Pence said the Trump administration must be clear-eyed about China’s strategic and economic threat to our nation.
“Today’s ruling by a federal appeals court that China’s TikTok can be banned in the U.S. is a win for the security and privacy of the American people,” Pence said.
He continued: “TikTok is digital fentanyl for America’s youth, and can be used as a technological weapon by the Chinese Communist Party.”
Trump took to Truth Social ahead of the election and said, “If you like TikTok, go out and vote for Trump.”
ByteDance must sell TikTok by Jan. 19. The law will require app store companies and internet providers to stop supporting TikTok, effectively banning the app.
The opinion claimed that TikTok never “squarely denies” having ever manipulated content on the platform and predicts that if asked, TikTok would try to comply.
“If the Trump administration throws its support behind the TikTok ban, businesses, marketers, and users could face significant disruptions,” said Damian Rollison, SOCi’s director of market insights.
“With platforms like TikTok and Instagram now surpassing Google as the top search destinations for Gen Z .. marketers would lose a key channel for engaging younger audiences.”
Rollison said that small businesses that have relied on TikTok’s platform to promote products would need to “quickly pivot to alternative platforms.” He said that established brands might also feel the impact of losing the platform that reaches younger consumers, potentially affecting “long-term brand perception and market share.”
Rollison said that if the Trump administration finds a way around the ban, concerns about data privacy and national security might resurface, leading to new business challenges.
TikTok and ByteDance can ask for their appeal to be reconsidered by the full lineup of judges in the D.C. federal circuit.
