A U.S. federal appeals court ruled on Friday that ByteDance, the China-based owner of TikTok, must divest the app in the U.S. or face a ban. The decision upholds a law aimed at addressing national security concerns over TikTok’s Chinese ownership. Here’s what could happen next.
Legal Battles Ahead
TikTok and ByteDance are challenging the law in federal court, arguing it violates free speech protections. However, a three-judge panel of the U.S. Court of Appeals cited national security as a priority, ruling in favour of the government. ByteDance could appeal to the Supreme Court before the law’s January 19 deadline takes effect.
This isn’t TikTok’s first legal battle. Last year, it successfully secured a preliminary injunction against a state-level ban in Montana.
A Long-Running Debate
The debate over TikTok’s U.S. operations began in 2020 when former President Donald Trump attempted to ban the app, citing data privacy concerns. President Joe Biden later withdrew Trump’s executive orders but signed a bill in April 2023 requiring TikTok’s divestment.
If ByteDance fails to divest, U.S. tech companies enabling TikTok access after the deadline could face hefty fines. Even if a deal progresses, the process could stretch into 2024.
Challenges of Divestment
China’s strict export rules complicate any sale. TikTok’s recommendation algorithm is considered a sensitive technology, requiring Chinese government approval for transfer.
For Users and the Future
For TikTok’s 170 million U.S. users, the app’s functionality remains unchanged for now. However, its future hinges on complex legal, political, and technological negotiations. As the deadline nears, this unfolding saga could reshape the global tech landscape.
