The U.S. Court of Appeals has upheld a decision requiring TikTok to be sold by January 2025. If the sale does not occur, the app faces a potential ban in the United States.
The law mandating the sale was signed by President Joe Biden in April 2024. In response, TikTok filed a lawsuit against the government, arguing that the measure infringes on freedom of expression and individual liberty. The app sought to overturn the decision, but the court rejected its appeal.
In its ruling issued Friday (6), the Court stated that the U.S. government’s actions are intended to protect national security by preventing a foreign adversary from collecting data on American citizens. The decision highlights concerns over TikTok’s ties to its Chinese parent company, ByteDance, amid ongoing scrutiny over data privacy and national security risks.
What does the decision predict?
The law requires TikTok to divest from its Chinese parent company, ByteDance, and sell its U.S. operations to another company—preferably an American one—by January 2025.
If TikTok can demonstrate that a sale is actively in progress, the deadline may be extended by three months, pushing the final date to April 2025. However, if no deal is reached within this timeframe, TikTok will be banned from operating in the U.S. This includes the removal of the app from the App Store and Google Play Store.
Why did the US punish TikTok?
This decision stems from a diplomatic conflict that began in 2020 during Donald Trump’s presidency. The U.S. has accused TikTok of collecting data from American users and sharing it with the Chinese government.
As a key competitor in the technology sector, China has faced increasing scrutiny from the U.S., leading to sanctions on companies like Huawei over the past four years.
It’s important to note that the ban applies only within the United States, meaning TikTok could continue operating in other countries. However, losing access to one of its largest international markets would be a significant blow to the platform.
How will TikTok react?
TikTok has yet to issue a statement regarding the court’s decision announced today. However, according to the Associated Press, the platform is expected to appeal and take the case to the U.S. Supreme Court. This legal action could potentially extend deadlines and allow TikTok to continue operating in the country for the time being.
President-elect Donald Trump, during his campaign, hinted at the possibility of ending the sanctions on TikTok. However, it remains uncertain if or how he will act on the issue once he takes office in January.
TikTok has previously expressed its unwillingness to sell its U.S. operations, citing the complexity of such a transaction. The company has argued that transferring millions of lines of software code to another entity would be logistically challenging. Additionally, the Chinese government could intervene to block the sale, as it may restrict ByteDance from transferring TikTok’s proprietary algorithm to a foreign company.
