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A U.S. federal appeals court on Friday upheld a controversial law requiring Chinese-based ByteDance to sell or divest its ownership of TikTok’s US operations by January 19, 2025, or face a nationwide ban on the popular short-video app.
The decision marks a sweeping victory for the Justice Department and critics of the Chinese-owned app while delivering a significant setback for ByteDance.
The ruling raises the specter of an unprecedented ban on a social media platform that boasts over 170 million American users. ByteDance and TikTok are expected to appeal the decision, either to the Supreme Court or a full panel of the appellate court.
The three-judge panel, consisting of Sri Srinivasan, Neomi Rao, and Douglas Ginsburg, ruled that the law reflects years of bipartisan concerns over potential threats posed by TikTok’s ties to the Chinese government.
The court described the legislation as “carefully crafted” and aimed exclusively at mitigating foreign control over US communications infrastructure.
“This law was the culmination of extensive, bipartisan action by Congress and successive presidents,” the court wrote, adding that it addresses a “well-substantiated national security threat posed by the PRC (People’s Republic of China).”
US officials have long warned that ByteDance’s management could be compelled by Beijing to share the private data of American users, a claim that TikTok has vehemently denied.
The company insists it has never shared U.S. user data with the Chinese government and has called concerns about its operations “speculative.”
If the Supreme Court does not reverse the decision, TikTok’s future could hinge on President Joe Biden’s willingness to grant a 90-day extension to the January 19 deadline. Such an extension would allow ByteDance additional time to finalize a divestment deal. However, the ruling also places the ultimate decision in the hands of President-elect Donald Trump, who is set to take office on January 20.
Trump, who attempted unsuccessfully to ban TikTok during his first term in 2020, stated before the recent presidential election that he would not allow the app to be banned. His comments raise uncertainty about how the law will be enforced under his administration.
Without an extension or a Supreme Court intervention, app stores like Apple and Google will be required to remove TikTok from their platforms, and internet hosting services will be prohibited from supporting the app.
ByteDance has argued that the divestment mandate violates Americans’ free speech rights and represents an unprecedented departure from the US tradition of fostering an open internet. The company is backed by major investors, including Sequoia Capital and KKR & Co., and was valued at $268 billion as of December 2023.
In a statement during prior legal proceedings, TikTok labeled the divestment law “a radical overreach” and a politically motivated attempt to stoke anti-China sentiment.
In a concurring opinion, Judge Srinivasan acknowledged the ruling’s far-reaching implications for TikTok users and the broader digital landscape.
“170 million Americans use TikTok to create and view all sorts of free expression and engage with one another and the world,” Srinivasan wrote. “Yet, in part because of the platform’s expansive reach, Congress and multiple Presidents determined that divesting it from [China’s] control is essential to protect our national security.”
The decision also reflects Congress’s intent to prevent censorship or suppression of specific content, Srinivasan added, framing the law as consistent with longstanding US regulatory practices.
Neither the Justice Department nor TikTok issued immediate comments on the ruling. However, the case is poised to escalate, with ByteDance likely to seek relief from the Supreme Court or pursue other legal remedies.
For TikTok’s millions of American users, the ruling signals an uncertain future, with just six weeks remaining before a potential ban reshapes the social media landscape.
The post Appeals Court Upholds TikTok Ban Law Over National Security Concerns appeared first on Arise News.
