TikTok faces ban in US as appeals court upholds divestment law

A US federal appeals court has upheld a law requiring TikTok’s China-based parent company ByteDance to divest its US operations by January 19, 2025 or face a nationwide ban on the app.
The decision, handed down on Friday, exacerbates the platform’s legal and operational challenges while increasing tensions between the United States and China.
The ruling by a three-judge panel of the US Court of Appeals for the District of Columbia was described as a significant victory for the Justice Department, which has long argued that TikTok poses a threat to national security.
The divestment law, passed with bipartisan support, was designed to protect US national security interests against potential threats from China’s influence over the app, the court said.
Contested the future for TikTok
TikTok, which has 170 million users in the United States, is expected to appeal the decision to the Supreme Court.
The company argues that the divestment law violates First Amendment rights and constitutes censorship. “The Supreme Court has a strong track record of protecting Americans’ free speech, and we are confident they will uphold this principle in our case,” TikTok said in a statement.
The law prohibits app stores and internet hosting services from offering TikTok after the deadline unless ByteDance sells its US operations.
While ByteDance has denied allegations of sharing data with the Chinese government, US officials have raised concerns about data security and potential manipulation of information on the platform.
Political mobilization
The decision leaves the final implementation of the ban in the hands of President Joe Biden, who can grant a 90-day extension if significant progress is made toward sales, and President-elect Donald Trump, who will take office the day after January. 19 last date.
Trump, who tried to ban TikTok in 2020, has since reversed his stance, voicing opposition to the ban during his recent presidential campaign.
The ruling is already drawing criticism from free speech advocates. The American Civil Liberties Union (ACLU) called the decision “flawed and dangerous” and argued that it set a troubling precedent for censorship.
Implications for the tech landscape
If enforced, the ban could significantly reshape the social media landscape, benefiting rivals like Meta and Alphabet’s YouTube. Meta’s shares surged following the ruling, reflecting investor optimism about reduced competition in the online advertising space.
Despite the uncertainty, TikTok continues to expand its US operations, including reporting $100 million in Black Friday sales through its e-commerce venture.
However, analysts warn that the ban could disrupt content creators and businesses that rely on the platform while deepening the rift in US-China relations.
As the deadline looms, all eyes are on the Supreme Court and the incoming administration to decide TikTok’s future in the United States.