US appeals court upholds law requiring ByteDance to divest TikTok by Jan. 19

From Investing.com: 2024-12-06 12:31:12

A U.S. federal appeals court upheld a law requiring ByteDance to divest TikTok in the U.S. by Jan. 19 or face a ban, a blow to the Chinese-owned app used by 170 million Americans. ByteDance and TikTok may appeal the ruling to the Supreme Court. Trump previously tried to ban TikTok in 2020.

The law was designed to counter a national security threat posed by China. Judges Srinivasan, Rao, and Ginsburg considered legal challenges. The fate of TikTok now rests with President Biden, who may grant an extension, and President-elect Trump. The Justice Department claims TikTok poses a national security threat due to its Chinese ownership.

ByteDance, valued at $268 billion, argues the law is unconstitutional and infringes on free speech rights. The law prohibits app stores and internet hosting services from supporting TikTok unless ByteDance divests by the deadline. TikTok denies sharing U.S. user data. The decision impacts 170 million Americans who use TikTok for free expression.

The court’s decision will lead to TikTok’s ban on Jan. 19 without an extension. The ruling acknowledges the need to protect national security by divesting TikTok from Chinese control. The law aims to prevent China from manipulating information consumed by Americans through TikTok. The ruling may have significant impacts on free expression and national security.



Read more at Investing.com: US appeals court upholds TikTok law forcing its sale By Reuters