New ruling against TikTok appeal brings US ban closer

The deadline set by the US “anti-TikTok” bill is just weeks away. ByteDance, the parent company of the world’s most popular short-video platform, has been doing everything it can to prevent the implementation of the law. A recent court ruling against TikTok’s appeal limits its options to evade the US ban.

Recently, ByteDance filed an appeal of the bill in court. The outcome has been far from what the company expected, as the three-judge panel dismissed all its arguments. ByteDance argued that the law violates the First Amendment’s principles of freedom of expression and the Fifth Amendment’s equal protections. However, the judges determined that the bill is entirely constitutional.

The Biden administration signed the law in April, compelling TikTok to divest its US division. The law sets the deadline for January 19, 2025, just one day before Donald Trump’s second arrival at the White House.

Judges dismiss TikTok’s appeal arguments against US ban

ByteDance has shown support for Trump with donations to his election campaign through Jeff Yass, an American businessman, and ByteDance’s first big backer. For reference, Jeff Yass’ Susquehanna International Group owns 15% of ByteDance shares, valuing his investment at about $40 billion—starting from an initial investment of just over $2 million. Meanwhile, Trump has opposed the removal of TikTok from the US market. This position is totally different from that of his first presidential term.

The US Constitution allows the president to issue 90-day extensions to similar cases. However, this measure applies in situations where the company is heading for a spin-off process. The biggest unknown currently is the potential impact of the upcoming Washington administration on the situation.

“The Government has offered persuasive evidence showing that the Act is narrowly tailored to protect national security,” said Justice Douglas Ginsburg on behalf of the court that ruled against ByteDance’s appeal.

TikTok says it operates separately from ByteDance, its Chinese parent company

US officials are concerned about the amount of US data that Beijing could access. Chinese law allows companies to request data if they claim dangers to national security. Another concern is the potential for manipulations in the platform’s recommendation algorithm, which could potentially influence young Americans.

Meanwhile, TikTok claims that it operates independently of ByteDance. Plus, the company does not send American data to Chinese servers. However, this does not convince US legislators. They believe that China can use its laws to pressure ByteDance to give them sensitive US data.

“Unfortunately, the TikTok ban was conceived and pushed through based upon inaccurate, flawed and hypothetical information, resulting in outright censorship of the American people. The TikTok ban, unless stopped, will silence the voices of over 170 million Americans here in the US and around the world on January 19th, 2025,” said Michael Hughes, the TikTok spokesperson.

The bill was initially supported by Republicans as well

Although Trump wants to avoid the ban of TikTok in the US, Joe Biden’s bill received overwhelming support at the time. Both US political sides agreed that it was a necessary measure to protect national security. This includes Republican representatives as well.

ByteDance still has a few opportunities to challenge the law. The company can appeal to both the DC Circuit and the Supreme Court. There is also Trump’s current position as a potential wild card.