US Supreme Court bans TikTok in US
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An official TikTok ban will go into effect in the US on January 19 unless ByteDance sells the App. In a unanimous decision, the Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, which took direct aim at TikTok.
Signed in April, the law’s intent was to limit the influence of social media platforms controlled by foreign entities considered adversaries to the US. The federal government is especially worried about TikTok, which is owned by Chinese company ByteDance, and its potential threat to national security. As such, to avoid an outright ban, the Supreme Court’s ruling forces ByteDance to find a buyer for TikTok.
“Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary,” the court said in its decision, per NPR.
After the law was enacted, TikTok began arguing its case, saying the app fell under the protection of the First Amendment. Yet, the court decided the Protecting Americans Act doesn’t violate freedom of speech, thereby leaving it the law of the land.
If the platform is not sold by Jan. 19, the TikTok ban will occur, and the app will be removed from Apple’s and Google’s app stores. US internet providers will no longer allow users access to the platform or face substantial fines if ignored.
“At least as I understand it, we go dark. Essentially, the platform shuts down,” stated TikTok’s lawyer.
With over 170 million TikTok users, the court’s decision is a significant blow to ByteDance. Yet, it may create a significant boost for app rivals like Instagram and YouTube’s Shorts platform. A lot of advertising dollars will likely move to competitors.
“In general, it’s a good thing for Meta,” Ralph Schackart, a William Blair research analyst, said to Yahoo! Finance. “We estimate in a note potentially 60% to 70% of TikTok spend could move to Instagram and it monetizes at around 3x the rate of TikTok.”
While competitors could be secretly salivating over a TikTok ban, there still remains the possibility the app will sold before the deadline. Earlier this week, it was rumored that the Chinese government was plotting to sell TikTok to Elon Musk. However, such discussions have yet to be confirmed.
Another possibility to avoid a ban is a ByteDance plea to the incoming Donald Trump administration. Late last year, President-elect Trump suggested a TikTok ban should be avoided as it would be a boon to the “true Enemy of the People” — Facebook.
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