TikTok closer to ban in United States after losing court appeal

(Patria) - TikTok is closer to being banned in the United States after losing an appeal on Friday against a law that requires the video-sharing app to divest from its Chinese parent company by January 19, AFP reported.

A potential ban could escalate tensions between the United States and China just as President-elect Donald Trump prepares to take office on January 20.

TikTok said it would now appeal to the Supreme Court, which could decide to take up the case or let the district court's decision stand.

"The Supreme Court has an established historical record of protecting the free speech rights of Americans and we expect it to do so in this important constitutional case," the company said.

TikTok will also seek out Trump, who has emerged as an unlikely ally, arguing that a ban would primarily benefit Meta, the parent company of Facebook, owned by Mark Zuckerberg.

Trump's stance reflects broader conservative criticism of Meta for allegedly suppressing right-wing content, including that of the former president who was banned from Facebook after the January 6, 2021, Capitol riot by his supporters.

The U.S. government claims TikTok allows Beijing to collect data and spy on users. It also states that TikTok is a channel for spreading propaganda, although China and app owner ByteDance strongly deny these claims.

Concerns over 'national security'

The law, signed by President Joe Biden in April, will block TikTok from U.S. app stores and web hosting services unless ByteDance sells the platform by January 19.

Recognizing that "170 million Americans use TikTok to create and watch all kinds of free expression," a three-judge panel unanimously upheld the legal premise that its divestiture from Chinese control is "essential to protecting our national security."

They found that the law does not impede free speech because it is "devoid of institutional purpose to suppress specific messages or ideas."

The judges disagreed with the idea that less drastic alternatives to a sale by ByteDance would resolve the security concerns.

U.S. Attorney General Merrick Garland welcomed the decision, saying the "Department of Justice is committed to defending Americans' sensitive data from authoritarian regimes seeking to exploit companies under their control."

Trump's support for TikTok marks a reversal from his first term, when the Republican leader attempted to ban the app for similar security reasons. That effort got bogged down in the courts when a federal judge questioned how the move would affect free speech and blocked the initiative.

Among those who helped Trump get to the White House in this year's election was Jeff Yass, a major Republican donor with ByteDance investments.

Trump as a savior

"Donald Trump could be a savior for TikTok once he takes office, but stopping the ban from taking effect is easier said than done," said Emarketer analyst Jasmine Enberg.

"And even if he manages to save TikTok, he has already reversed his stance on the app and there is no guarantee he won't go after it later."

The President-elect launched his own TikTok profile in June, gaining 14.6 million followers, but has not posted since Election Day.

Despite the uncertainty, TikTok's presence in the United States continues to grow. The platform reported $100 million in sales for Black Friday for its new shopping venture, and Emarketer predicts U.S. ad revenue will reach $15.5 billion next year, accounting for 4.5 percent of the country's total digital ad spending.

However, Enberg warned that a ban would significantly disrupt the social media landscape, benefiting Meta, YouTube, and Snap, while harming content creators and small businesses dependent on TikTok.

Gautam Hans, a professor at Cornell Law School, said the judges treated the government's national security argument "with great deference... while underestimating the radical effects this unfortunate decision will have on individual speakers and First Amendment doctrine."

But given the unanimous decision and the short timeframe before the law takes effect, "it is unlikely the Supreme Court will take the case, which will almost certainly lead to TikTok's demise in just a few weeks," he added.

In contrast, Carl Tobias, of the University of Richmond, said that given the "critical implications" of the issues at stake, national security and free speech, the court is likely to take the case.