TikTok
TikTok and its parent company, ByteDance, are escalating their legal battle by petitioning a federal appeals court to block a law that could lead to the app’s ban in the United States. The move seeks to prevent enforcement until the US Supreme Court reviews their challenge to the statute, which was recently upheld by a three-judge panel.
Law’s impact and shutdown threat
The law mandates that ByteDance divest its ownership stake in TikTok or face a potential ban. If enforced, TikTok has warned that the app would likely shut down by January 19, 2025, impacting over 170 million US-based users. The companies estimate that even a shutdown would result in a 29% loss in global advertising revenue for 2025, along with a significant loss of daily US users—about one-third.
Additionally, This platform has highlighted risks to its workforce, noting that current and prospective employees would likely seek opportunities elsewhere if the ban proceeds.
Supreme Court’s potential role
In their legal filing, the companies argue that the Supreme Court should weigh in as it is the only court with appellate jurisdiction. The companies believe an injunction would give the incoming administration time to assess the law’s potential consequences, potentially preventing further financial harm and national uncertainty.
Political implications
While former President Donald Trump previously sought to ban TikTok, he has since reversed his stance, creating a complex political backdrop for this legal battle.
DOJ opposition
The Department of Justice has filed its own response, opposing app request for an injunction. Officials argue that denying the request quickly could give the Supreme Court more time to evaluate the case.
TikTok and ByteDance are urging the appeals court to decide on their request by December 16, while the Department of Justice is preparing to expedite a denial of their request to allow the matter to proceed to the Supreme Court.
TikTok ban ears after court ruling
A US federal court rejected TikTok’s appeal on Friday (December 6), keeping a nationwide ban on track unless its Chinese parent company, ByteDance, divests its ownership by January 19, 2025. The ruling supports a law aimed at addressing national security concerns over ByteDance’s ties to China. This application, which has over 170 million US users, plans to seek intervention from the Supreme Court. If enforced, the ban could result in significant user loss, reduced ad revenue, and business disruption.