TikTok’s parent firm ByteDance has faced a setback in its latest legal battle in US courts concerning a possible ban on the app. A federal appeals court has declined to intervene in a bill that could put ByteDance in a difficult situation; if the law proceeds as intended, the company will be forced to either divest TikTok or see the app banned in the US. ByteDance still has the chance to escalate the matter to the US Supreme Court with another appeal.
Background of the Legislation
The legislation was initiated in April 2024 when President Joe Biden approved the Protecting Americans from Foreign Adversary Controlled Applications Act. This law has named the People’s Republic of China as one of America’s “foreign adversaries” and prohibits the use of applications operated by the country within the US. The law is set to take effect on January 19, 2025, which gives ByteDance and any other impacted companies until that date to ensure their apps comply, or risk facing a ban. Compliance would require selling the apps to firms based outside of China.
Legal Arguments and Court Decisions
The appeal was filed on the basis of alleged violations of the United States Constitution, particularly under the First Amendment regarding free speech. TikTok is operated by ByteDance through a series of fully owned subsidiaries based in California. The argument hinges on the idea that since the business operates in the US, it should enjoy Constitutional protections, which would extend to the TikTok platform. However, the court argues that TikTok has strong connections to China via ByteDance and that if the People’s Republic of China issued orders, TikTok could easily alter its services in the US for purposes like propaganda or censorship. Interestingly, President-Elect Donald Trump has publicly opposed the ban, and he might try to reverse it once he assumes office.
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