Court Rejects TikTok's Effort to Block U.S. Sell-Off Law - 2025 Ban Looms
A U.S. appeals court has recently denied TikTok's request to block the government's mandated sell-off of the app, bringing the company closer to a...
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Writing Team
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Jan 19, 2025 1:14:45 PM
Millions of TikTok users in the United States woke up Sunday morning to find they could no longer access the app or platform. Both Google and Apple removed TikTok from their app stores in compliance with a federal law that required ByteDance, TikTok’s China-based parent company, to sell its U.S. operations to an approved buyer by Sunday—or face a ban.
However, former President Donald Trump announced on his Truth Social account that he will intervene to keep the app accessible for now.
TikTok began restoring access to U.S. users Sunday after that temporary and voluntary shutdown that lasted less than a day. The decision to reinstate the app followed President-elect Donald Trump’s promise to issue an executive order extending the deadline for compliance with a federal law that banned the app unless its Chinese parent company, ByteDance, divested its U.S. operations.
In a statement Sunday, TikTok expressed gratitude for Trump’s support, saying, "We thank President Trump for providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive."
The statement added, "It’s a strong stand for the First Amendment and against arbitrary censorship. We will work with President Trump on a long-term solution that keeps TikTok in the United States."
In his post, Trump stated that he would issue an order to "extend the period of time before the law’s prohibitions take effect" and "confirm that there will be no liability for any company that helped keep TikTok from going dark before my order."
"Americans deserve to see our exciting Inauguration on Monday, as well as other events and conversations," Trump wrote, referencing the upcoming ceremonies and public events tied to his administration.
Under the law, the sitting president has the authority to grant a 90-day extension if there is evidence of progress toward a viable sale. Although several investors have made offers to purchase TikTok, ByteDance has previously stated it does not intend to sell.
Trump suggested a potential compromise, stating in his post: "I would like the United States to have a 50% ownership position in a joint venture." It remains unclear whether he was referring to a government stake or ownership by an American company.
"By doing this, we save TikTok, keep it in good hands, and allow it to stay up," Trump added. "Without U.S. approval, there is no TikTok. With our approval, it is worth hundreds of billions of dollars—maybe trillions."
In an interview with NBC News on Saturday, Trump said that a final decision on the extension would "probably" be announced on Monday after he is sworn in.
ByteDance voluntarily suspended TikTok’s service hours before the midnight Sunday deadline imposed by a federal law. The law, passed last year, required ByteDance to sell its U.S. operations or face a ban due to concerns about national security. The Supreme Court upheld the law on Friday, unanimously rejecting TikTok’s argument that it violated the First Amendment rights of the app and its users.
When the app went offline, U.S. users saw a message stating, "Sorry, TikTok isn’t available right now," and were redirected to a website with information about the ban. The app also disappeared from Apple’s App Store and Google Play.
President-elect Trump announced Sunday on his Truth Social account that he planned to issue an executive order on Monday to extend the deadline before the law takes effect.
"Americans deserve to see our exciting Inauguration on Monday, as well as other events and conversations," Trump wrote. He emphasized that extending TikTok’s operation was not only about preserving freedom of expression but also about maintaining the app’s immense economic value.
"By doing this, we save TikTok, keep it in good hands, and allow it to stay up," Trump added. "Without U.S. approval, there is no TikTok. With our approval, it is worth hundreds of billions of dollars—maybe trillions."
Trump also suggested the possibility of a joint venture, stating that he would like the U.S. to hold a 50% ownership stake in TikTok’s U.S. operations, though details about this proposal remain unclear.
The Supreme Court’s Friday ruling upheld the law mandating ByteDance’s divestiture of TikTok’s U.S. operations, citing national security concerns. The court agreed with the government’s position that TikTok’s data collection practices could enable the Chinese government to access sensitive information on millions of Americans.
"There is no doubt that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community," the court’s opinion stated. "But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok's data collection practices and relationship with a foreign adversary."
So what's the big deal?
During Supreme Court arguments, TikTok’s lawyer, Noel Francisco, warned that a forced divestiture could fundamentally alter the platform. ByteDance’s proprietary algorithm, which powers TikTok’s personalized video recommendations, is unlikely to be included in any sale. Francisco explained that without the algorithm, TikTok would need "many years" to rebuild, resulting in a "fundamentally different platform."
TikTok remained fully operational outside the U.S. during the shutdown, with international users still able to interact with American accounts. However, the suspension highlighted the challenges of enforcing a ban on a global platform with millions of users.
While Trump’s intervention temporarily saves TikTok from going dark, its long-term future in the U.S. remains uncertain. Even with an extension, ByteDance would still need to secure a buyer or face penalties for non-compliance. Trump’s national security adviser, Mike Waltz, expressed optimism, saying on Face the Nation that Trump had spoken to Chinese President Xi Jinping, and both leaders were committed to finding a solution.
"We can have an app that protects Americans," Waltz said, adding that TikTok’s popularity made it an important platform for communication and economic growth.
TikTok CEO Shou Zi Chew thanked Trump for his willingness to find a path forward for TikTok, saying, "This commitment ensures we can continue serving our U.S. users for years to come." However, he acknowledged the significant legal and technical challenges the company faces in complying with the divest-or-ban law.
The law remains on the books, and companies like Apple and Google could face steep fines in the future for violations. Solicitor General Elizabeth Prelogar noted during arguments that any failure to comply would trigger penalties, even if enforcement is temporarily delayed.
For now, TikTok users can breathe a sigh of relief as service is restored. However, with the law still in place and the deadline for compliance looming, the platform’s future in the U.S. is far from secure. Whether through a sale, a joint venture, or further legal challenges, TikTok’s fate will depend on the ability of ByteDance, the U.S. government, and potential buyers to negotiate a lasting solution.
Several high-profile buyers have expressed interest in acquiring TikTok:
The TikTok ban raises questions about ByteDance’s other platforms, such as:
In anticipation of TikTok’s potential ban, users are exploring alternative platforms:
TikTok’s future remains uncertain. For now, TikTok users and content creators are preparing for the worst while diversifying their online presence.
Sources: This article is based on reporting from the Associated Press, NBC, and Reuters.
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