Appeals Court Backs TikTok Ban Unless U.S. Ownership Changes

WASHINGTON - A federal appeals court has upheld a law requiring TikTok to either sever ties with its China-based parent company ByteDance or face a U.S. ban by mid-January.

The unanimous ruling on Friday marked a defeat for the popular social media platform, which has been fighting to maintain its presence in the United States.

The U.S. Court of Appeals for the District of Columbia Circuit rejected TikTok’s petition to overturn the law, which the company argued violated the First Amendment. The court’s opinion, authored by Judge Douglas Ginsburg, stated, “The First Amendment exists to protect free speech in the United States. Here the Government acted solely to protect that freedom from a foreign adversary nation and to limit that adversary’s ability to gather data on people in the United States.”

TikTok and ByteDance plan to appeal the decision to the Supreme Court, though it remains uncertain whether the case will be taken up. 

The law, signed by President Joe Biden in April, is the latest development in a years-long debate over TikTok’s connections to China. U.S. officials have voiced concerns about the app’s collection of user data, including viewing habits, and the potential for the Chinese government to access or manipulate this information. The app’s proprietary algorithm has also raised red flags, with critics warning of possible content manipulation by Beijing.

In its defense, TikTok argued that no evidence has been presented to show it has shared user data with the Chinese government or manipulated content for Beijing’s benefit. The company also pointed to its $2 billion investment in bolstering U.S. user data protections as proof of its commitment to addressing national security concerns.

Friday’s ruling followed oral arguments in September, during which TikTok’s legal team argued the law violated constitutional protections, including the Fifth Amendment. Judge Ginsburg dismissed these claims, stating the government’s actions did not amount to an unlawful taking of property or suppression of content.

Supporters of the legislation view it as a necessary step to protect national security, while critics, including the Knight First Amendment Institute, have called it a “deeply misguided” overreach.

As the legal battle unfolds, potential buyers, including former Treasury Secretary Steven Mnuchin and billionaire Frank McCourt, have expressed interest in purchasing TikTok’s U.S. operations. McCourt’s Project Liberty initiative has reportedly secured informal commitments of over $20 billion in capital.

The clock now ticks toward mid-January, when TikTok must either divest or face a nationwide ban, leaving its 170 million U.S. users in limbo.