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Investor's Crypto Daily > Blog > Headlines > Economy > Economic News > Supreme Court confirms TikTok divestment: Will ByteDance be in compliance or will it face an US ban?
Economic News

Supreme Court confirms TikTok divestment: Will ByteDance be in compliance or will it face an US ban?

Last updated: January 17, 2025 4:19 pm
By Shelly Davidson 4 Min Read
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The US Supreme Court upheld a law that requires China’s ByteDance, to sell its TikTok ownership by Sunday or risk a ban on the video sharing app.

Contents
TikTok in the US: An uncertain futureFree expression vs. national security

This ruling highlights growing concerns about national security relating to TikTok’s data-collection practices and its alleged ties to the Chinese Government, putting the platform’s 170,000,000 American users in danger of losing their access.

Protecting Americans against Foreign Adversary Controlled Applications Act is supported by the decision. It will be signed into law in April 2024 by Joe Biden, President of the United States.

In a unanimous ruling, the court emphasized that TikTok’s data collection is massive and its susceptibility for foreign influence poses a significant threat to US security.

Justice Sonia Sotomayor, Justice Neil Gorsuch and Justice Sonia Sotomayor added their separate opinions.

TikTok in the US: An uncertain future

ByteDance is refusing to divest, so the fate of this app remains uncertain. TikTok will continue to work on any devices that already have it installed. However, the company is threatening to shut down the entire platform if they are forced into selling.

Apple and Google are also under pressure to remove TikTok after January 19, according to the court ruling. These tech giants could face penalties if they fail to comply.

Karine Jean Pierre, White House Press Secretary, reaffirmed that the Administration’s position. She emphasized that TikTok may remain accessible under US ownership or a solution that addresses security concerns.

Jean-Pierre said that the implementation of this legislation will be handed over to the new administration which assumes office on Monday.

Free expression vs. national security

This ruling has ignited a heated debate on national security and freedom of speech.

US Solicitor-General Elizabeth Prelogar has defended this law, citing TikTok’s connections to ByteDance as well as the potential influence of the Chinese Communist Party.

Noel Francisco, the lead attorney for TikTok, argued that the law violated the First Amendment right of millions of TikTok users, who use the app to express themselves creatively, get news and promote their businesses.

Kate Ruane of the Center for Democracy and Technology criticized this decision.

CNBC reported that Ruane said, “This ruling undercuts the freedom of expression for TikTok’s users worldwide and in the US.” Ruane noted that TikTok has been a valuable tool to share information and foster creativity.

TikTok creators urge their followers to move to other platforms, such as Facebook and Instagram, before the deadline.

CNBC reported that Instagram’s leadership had been preparing to receive a possible influx of new users.

RedNote, an app that looks like TikTok, has risen to the top in Apple’s App store, showing a growing demand for alternatives.

Bloomberg reports that China is looking at contingencies in order to keep TikTok US operations.

TikTok’s US assets are estimated to be worth $40-50 billion dollars if they were sold.

ByteDance, the new Trump administration and TikTok will determine the fate of the app in America.

The post Supreme Court affirms TikTok’s divestment orders: Will ByteDance be compliant or will it face an US ban? The post Supreme Court upholds TikTok divestment order: Will ByteDance comply or face a US ban?

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