The US Supreme Court has upheld a federal law requiring TikTok’s Chinese parent company, ByteDance, to divest its ownership of the social media platform or face a nationwide TikTok ban. The decision sets Sunday as the compliance deadline, raising uncertainty about the app’s future in the United States. The court’s ruling, delivered on Friday, rejected […]
The US Supreme Court has upheld a federal law requiring TikTok’s Chinese parent company, ByteDance, to divest its ownership of the social media platform or face a nationwide TikTok ban.
The decision sets Sunday as the compliance deadline, raising uncertainty about the app’s future in the United States.
The court’s ruling, delivered on Friday, rejected TikTok’s challenge that the law violated First Amendment rights, citing national security concerns over data harvesting and potential influence by the Chinese government.
The bipartisan legislation, signed last year, mandates that ByteDance sell TikTok’s US operations or see the app removed from American app stores and its operations cease.
Why the ban was upheld
The Supreme Court’s decision overturned a lower court ruling, affirming Congress’s authority to address national security risks linked to TikTok.
Justice Department lawyers argued that ByteDance’s access to US user data poses a “grave threat”, with fears that the Chinese government could leverage the platform for espionage or propaganda.
“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 stated.
While users who already have TikTok downloaded would still be able to access the app, the law prohibits US companies from supporting its updates or maintenance.
ByteDance’s refusal to sell TikTok has left the platform on the brink of closure unless a last-minute deal is reached.
Trump’s role in TikTok’s fate
President-elect Donald Trump, set to take office on Monday, has indicated that his administration may intervene to prevent TikTok from shutting down.
Incoming National Security Adviser Mike Waltz hinted at using the law’s 90-day extension provision if there is “significant progress” toward divestiture. However, any such move could face legal and political challenges.
Read more: TikTok faces another penalty in a new lawsuit over data protection and privacy violations
Trump’s evolving stance on TikTok has drawn attention. While he sought a TikTok ban during his first term, he utilised it extensively during his 2024 presidential campaign to engage younger voters.
Trump has pledged to “save TikTok” and is reportedly exploring solutions to keep the app operational under US ownership.
Interest in acquiring TikTok
Several entities have expressed interest in acquiring TikTok’s US operations.
Billionaire Frank McCourt’s Project Liberty initiative has reportedly partnered with investors, including “Shark Tank” host Kevin O’Leary, to propose a deal to ByteDance.
Additionally, former US Treasury Secretary Steve Mnuchin has shown interest in leading an investor group to explore a potential purchase.
These bids underline the high stakes and lucrative potential of owning TikTok’s US operations, particularly given its user base of more than 170 million Americans.
Entrepreneur and investor Mark Cuban has also expressed interest in funding a TikTok alternative built on Bluesky’s AT Protocol.
He stated his willingness to invest in developers who can create a TikTok rival using this technology, emphasising the extensibility and user autonomy the AT Protocol offers.
@mcuban Let me know in the comments ! https://docs.bsky.app/docs/advanced-guides/atproto. #savetiktok #tiktok## shout out to @Austin ♬ original sound – Mark Cuban
Users flock to RedNote amid TikTok uncertainty
The looming TikTok ban has driven users to alternative platforms, with Chinese app RedNote seeing a surge of over half a million new sign-ups in recent weeks.
Known in China as Xiaohongshu (“Little Red Book”), RedNote combines social networking with e-commerce and has been dubbed “China’s Instagram.”
The app’s interface differs from TikTok, offering a mix of videos, photos, and longer-form content. RedNote’s executives are allegedly scrambling to accommodate the influx of English-speaking users, recognising the opportunity to expand its global reach.
Global implications
The US ban on TikTok could have ripple effects worldwide. Canada, which previously restricted TikTok’s business operations on national security grounds, has stated that its decision is unaffected by US actions.
However, Canadian content creators reliant on US audiences may face significant revenue losses if TikTok shuts down in the United States.
India’s 2020 TikTok ban, along with other Chinese apps, offers a cautionary tale. While more prominent influencers transitioned to platforms like Instagram, smaller creators struggled to rebuild their audiences.
The US ban could similarly disrupt the livelihoods of American and global TikTok users.
