US Appeals Court Upholds TikTok Sale Requirement
A US federal appeals court upheld a law requiring ByteDance to divest TikTok or face a ban by January 2025, citing national security concerns about Chinese access to American user data. The court rejected TikTok's First Amendment challenge, finding the statute was carefully designed to address control of a foreign competitor.
What happened
The US Appeals Court affirmed a federal law requiring ByteDance to divest TikTok or face a ban in the United States by January 2025. The court rejected TikTok's argument that the law violates the First Amendment, ruling the statute represents the culmination of comprehensive congressional action focused on controlling a foreign competitor.
The Department of Justice asserts that TikTok under Chinese ownership poses a serious threat to national security due to access to personal data of Americans, claiming China could covertly manipulate information consumed by Americans via TikTok. TikTok and ByteDance contend the law is unconstitutional and violates Americans' free speech rights, characterizing it as a radical departure from the country's tradition of advocating an open internet.
Reported impact
TikTok operates with 170 million users in the United States. The potential ban or forced sale would affect these users' ability to access the platform.
Index analysis
The appeals court determined that ByteDance's ownership of TikTok represents a national security threat that outweighs First Amendment concerns. The court stated the law was carefully designed to address only control of a foreign rival and was part of a broader effort to counter a well-founded threat to national security presented by China.
Governance controls
President Joe Biden, who signed the law in April, may approve a one-time 90-day extension only if ByteDance has made significant progress in finding a buyer. The law prohibits app stores like Apple and Google from offering TikTok and prohibits internet hosting services from supporting TikTok unless ByteDance divests by the deadline.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.