US Appeals Court upholds law requiring TikTok sale

China-based Bytedance has one last avenue to avoid the sale of its TikTok social media service after losing a court appeal to invalidate a US law that requires the service be sold by January 19, 2025.

In its decision, the US Court of Appeals noted that the law requiring the sale of TikTok was a bipartisan effort in order to counter "a well-substantiated national security threat posed by the PRC (People's Republic of China)." The US government believes that Bytedance's ownership of TikTok gives them — and thus the Chinese government — access to a vast trove of personal data collected from users.

TikTok will likely appeal to the Supreme Court, which could result in an extra 90-day stay on enforcement of the law if the court agrees to hear the case and President Biden approves the stay. If it refuses the appeal, TikTok could be facing a ban or forced sale in the US in early January, despite the 170 million Americans using the social media service.

A reflection of current political tensions

TikTok is considered one of the leading sources of misinformation and disinformation, alongside other social media networks like Meta's Facebook and X.com, formerly Twitter, now owned by Elon Musk. Officials in China have called the law "a blatant act of commercial robbery."

Tensions between China and the US have grown steadily because of new restrictions on China's chip industry by the Biden administration. China has responded by banning exports of certain rare earth elements to the US.

TikTok CEO Shou Zi Chew has found allies in the American Civil Liberties Union, which said in a statement that banning TikTok "blatantly violates the First Amendment rights of millions of Americans who use this app to express themselves and communicate with people around the world." Chew vowed that TikTok "will continue the fight to protect free speech on our platform."

However, the appeals court found that China's influence over ByteDance, the parent company of TikTok, raised the possibility of China manipulating public discourse. If the Supreme Court refuses to hear the case, ByteDance must sell the service by January 19 — one day before President-elect Trump is sworn into office for his second term.

During his previous term as President, Trump was in favor of forcing ByteDance to sell TikTok, but he has recently said he is now opposed to the deal. Trump also tried to ban Tencent-owned WeChat in 2020, but legal efforts blocked his administration from enforcing the order.