US SC orders TikTok sale by Sunday or face ban, cites Chinese firm's ties to 'foreign adversary' in ruling

The US Supreme Court unanimously upheld a federal law that will ban TikTok starting Sunday, unless its China-based parent company, ByteDance, sells the app. The Court ruled that the national security risks tied to the app’s Chinese connections outweighed concerns about restricting free speech for its 170 million users in the United States.

Although experts suggest the app will remain accessible to current users after the law takes effect on January 19, new downloads will be prohibited and no further updates will be available, ultimately making the app unusable. This was confirmed by the Justice Department in court filings.

The ruling comes amid political tension, with President-elect Donald Trump claiming he could broker a solution and the outgoing Biden administration indicating it will not enforce the law on Sunday, his last full day in office.

Trump, aware of TikTok's widespread popularity and his own 14.7 million followers on the app, finds himself at odds with prominent Senate Republicans who have criticized TikTok’s Chinese parent company for not securing a buyer sooner.

It remains unclear what options Trump will have once he is sworn in as president on Monday. The law permits a 90-day pause on the app's restrictions if progress toward a sale has been made before the law takes effect. However, Solicitor General Elizabeth Prelogar, representing the Biden administration in defense of the law, told the Supreme Court last week that it is uncertain whether the possibility of a sale after the law’s enforcement would trigger the 90-day delay for TikTok.

“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. 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. For the foregoing reasons, we conclude that the challenged provisions do not violate petitioners’ First Amendment rights,” the court said.

Justices Sonia Sotomayor and Neil Gorsuch filed separate brief opinions expressing reservations about the Court’s decision but ultimately agreed with the ruling.

During oral arguments, a lawyer representing TikTok and its Chinese parent company, ByteDance Ltd., explained the challenges of completing a sale, particularly due to Chinese laws that restrict the transfer of the proprietary algorithm that has fueled the app’s success.

TikTok, known for its ability to keep users engaged by offering hundreds of short videos within a half-hour, has faced criticism, including a lawsuit from Kentucky claiming the app is designed to be addictive and harms children’s mental health. Similar lawsuits have been filed by over a dozen states. TikTok has disputed these allegations, calling them inaccurate.

The controversy over TikTok's connection to China has come to symbolize the broader geopolitical rivalry between Washington and Beijing.

The US government has expressed concerns about TikTok’s data collection practices, particularly the vast amounts of user information, including sensitive data on viewing habits, which could potentially be accessed by the Chinese government through coercion. Officials also worry that the app's algorithm, which determines what users see, is susceptible to manipulation by Chinese authorities, who could shape content in ways that are hard to detect.

TikTok counters that the US has not provided evidence to support claims that China has attempted to manipulate content on the US platform or access American user data through TikTok.

In April, Congress passed bipartisan legislation that President Joe Biden signed into law, marking the culmination of a prolonged debate over TikTok’s potential national security risks.

TikTok, which filed a lawsuit against the government over the law last year, has consistently denied that it could be used as a tool for the Chinese government. In December, a three-judge panel, consisting of two Republican appointees and one Democratic appointee, unanimously upheld the law, leading TikTok to quickly appeal to the Supreme Court.

If TikTok is not sold to an approved buyer, the law will prevent app stores, including those operated by Apple and Google, from offering TikTok starting Sunday. Additionally, internet hosting services will be prohibited from hosting the app.

ByteDance, TikTok’s parent company, has said it is unwilling to sell. However, some investors, including former Treasury Secretary Steven Mnuchin and billionaire Frank McCourt, have shown interest in acquiring TikTok. McCourt’s Project Liberty initiative, along with its unnamed partners, has presented a proposal to ByteDance to purchase TikTok’s US assets, though the financial terms remain undisclosed.

Solicitor General Elizabeth Prelogar told the justices last week that enforcing the law might be the catalyst ByteDance needs to reconsider its stance.