US Appeals Court Affirms Law Potentially Banning TikTok “`
A federal appeals court upheld a law potentially leading to TikTok’s U.S. ban within months, rejecting the platform’s challenge.
The U.S. Court of Appeals for the District of Columbia Circuit ruled the law—mandating TikTok sever ties with ByteDance or face a mid-January ban—constitutional. It dismissed TikTok’s First Amendment claims and arguments of unfair targeting.
The court’s opinion stated: “The First Amendment protects free speech. The Government acted to protect this freedom from a foreign adversary and limit its data-gathering capabilities within the U.S.”
TikTok and ByteDance plan to appeal to the Supreme Court. President-elect Trump, who previously sought a ban, now opposes it and intends to work towards preserving the platform.
The law, signed by President Biden in April, concluded a prolonged debate regarding the app, deemed a national security threat due to its Chinese ties.
U.S. concerns center on TikTok’s potential for collecting extensive user data, including sensitive viewing habits, which could be accessed by the Chinese government. Officials also raised concerns about algorithm manipulation by Chinese authorities to subtly shape platform content.
However, a significant portion of the government’s case information remains redacted and inaccessible to the public and the companies.
TikTok, which challenged the law in May, denies being used for spying or manipulation. Its attorneys highlight the lack of evidence showing data transfer to the Chinese government or content manipulation for Beijing’s benefit. They argue the law is based on future risks, citing unspecified past actions the Department of Justice claims were taken due to Chinese government demands.
Friday’s ruling followed September oral arguments.
Legal experts previously found it difficult to predict the court’s decision.
During the over two-hour hearing, the panel—two Republican-appointed and one Democrat-appointed judge—grappled with TikTok’s foreign ownership’s impact on its constitutional rights and the government’s authority to limit foreign influence on foreign-owned platforms.
The judges questioned a Department of Justice attorney about First Amendment implications but also expressed skepticism towards TikTok’s arguments, challenging whether First Amendment rights prevent the government from regulating a powerful company influenced by a foreign adversary.
In their questions about ownership, the judges cited wartime precedents allowing restrictions on foreign ownership of broadcast licenses, questioning if TikTok’s arguments would apply during wartime.
To address data security concerns, TikTok claims to have invested over $2 billion in U.S. user data protection.
The company also argues that the government’s concerns could have been addressed through a draft agreement proposed to the Biden administration over two years ago. It blames the government for ending negotiations, a claim the Justice Department disputes.
The companies’ attorneys maintain that a commercial and technological divestiture is impossible. They assert that selling TikTok without its algorithm—the platform’s core technology—would isolate the U.S. version from global content.
Despite this, investors, including Trump’s former Treasury Secretary Steven Mnuchin and billionaire Frank McCourt, have shown interest in acquiring the platform. Both announced a consortium bid earlier this year.
This week, a spokesperson for McCourt’s Project Liberty initiative stated that unnamed participants have informally committed over $20 billion in capital.
TikTok’s lawsuit was consolidated with a second challenge by content creators (legal costs covered by TikTok) and a third by conservative creators affiliated with BASED Politics Inc.
If the law is upheld on appeal, Trump’s Justice Department would enforce it, potentially penalizing app stores and internet hosting services for offering or supporting TikTok.
“`