TikTok closer to US ban after losing court appeal

TikTok edged closer to being banned in the United States after it lost an appeal on Friday against a law requiring the video-sharing app to divest from its Chinese parent company by Jan. 19.

A potential U.S. ban on TikTok could escalate tensions between the United States and China as President-elect Donald Trump prepares to assume office on January 20. TikTok has announced plans to appeal the case to the Supreme Court, hoping to overturn the decision upholding the ban.

The company expressed confidence in the Supreme Court's historical commitment to protecting free speech. "The Supreme Court has an established historical record of protecting Americans' right to free speech, and we expect they will do just that on this important constitutional issue," TikTok said.

TikTok's strategy also involves Trump, who has emerged as an unexpected ally. Trump has argued that a ban would primarily benefit Meta’s platforms, owned by Mark Zuckerberg. This aligns with broader conservative criticism of Meta for allegedly suppressing right-wing content, including banning Trump from Facebook following the January 6, 2021, Capitol riot.

The U.S. government has justified the ban on national security grounds, alleging that TikTok enables Beijing to collect user data and spread propaganda. These claims are strongly denied by China and ByteDance, TikTok’s parent company.

National Security Debate
A law signed by President Joe Biden in April mandates that TikTok be removed from U.S. app stores and web hosting platforms unless ByteDance divests from the platform by January 19. A three-judge panel unanimously upheld this requirement, emphasizing that divestment is critical to safeguarding national security. The judges concluded that the law does not infringe on free speech, as it does not aim to suppress specific ideas or messages.

Attorney General Merrick Garland praised the ruling, reaffirming the Justice Department’s commitment to protecting Americans' sensitive data from foreign adversaries. The panel also dismissed the notion that less drastic measures than divestment would adequately address security concerns.

Trump’s Evolving Stance
Trump's support for TikTok marks a significant shift from his previous administration when he attempted to ban the app over similar concerns. That effort stalled in court after a federal judge questioned its impact on free speech. This time, Trump’s position might be influenced by support from Jeff Yass, a major Republican donor with investments in ByteDance.

However, experts warn that Trump's potential support for TikTok might not be consistent. "Donald Trump could be a lifeline for TikTok once he takes office, but halting the enforcement of the ban is easier said than done," said Jasmine Enberg, a lead analyst at Emarketer.

Despite the challenges, TikTok's growth in the U.S. remains strong. The platform reported $100 million in Black Friday sales from its shopping feature, and its U.S. ad revenue is projected to reach $15.5 billion next year, accounting for 4.5% of the country's digital ad spending.

Legal and Market Implications
The legal battle has sparked a wider debate on the intersection of national security and free speech. Gautam Hans, a Cornell Law School professor, criticized the court’s deference to the government's security argument, suggesting it undervalues the First Amendment implications. Conversely, Carl Tobias of the University of Richmond believes the Supreme Court is likely to take the case, given its critical implications for national security and constitutional rights.

A ban on TikTok would significantly alter the U.S. social media landscape, benefiting competitors like Meta, YouTube, and Snap, while harming content creators and businesses reliant on TikTok’s platform. The uncertainty surrounding TikTok’s future could have lasting effects on the digital ecosystem in the U.S.