Senators push Biden to extend TikTok sale deadline amid legal uncertainty

Democratic Senator Ed Markey and Republican Senator Rand Paul are urging President Joe Biden to extend the January 19 deadline for ByteDance, the China-based owner of TikTok, to sell the app’s US assets or face a nationwide ban. The Supreme Court is set to hear arguments on January 10 regarding ByteDance’s legal challenge, which claims the law mandating the sale violates First Amendment free speech rights. In their letter to Biden, the senators highlighted the potential consequences for free expression and the uncertain future of the law.

The controversial legislation, signed by Biden in April, was passed due to national security concerns. The Justice Department asserts that TikTok’s vast data on 170 million American users poses significant risks, including potential manipulation of content. TikTok, however, denies posing any threat to US security.

The debate has split lawmakers. Senate Minority Leader Mitch McConnell supports enforcing the deadline, while President-elect Donald Trump has softened his stance, expressing support for TikTok and suggesting he would review the situation. The deadline falls just a day before Trump is set to take office on January 20, adding to the uncertainty surrounding the app’s fate.

US Supreme Court to hear TikTok’s bid to block ban

The US Supreme Court has agreed to review a case involving TikTok and its Chinese parent company, ByteDance, in a challenge against a law requiring the app’s sale or a ban in the US by January 19. The court will hear arguments on 10 January but has not yet decided on TikTok’s request to block the law, which it claims violates free speech rights under the First Amendment. TikTok, used by 170 million Americans, argues the law would harm its operations and user base, while US officials cite national security concerns over data access and content manipulation.

The Justice Department has labelled TikTok a significant security risk due to its Chinese ownership, while TikTok denies posing any threat and accuses lawmakers of speculation. The law, passed in April and signed by President Biden, would ban the app unless ByteDance divests its ownership. The company warns that even a temporary shutdown could damage its US market share, advertising revenue, and ability to recruit creators and staff.

The case also reflects heightened tensions between the US and China over technology and trade policies. TikTok’s fate could set a precedent for the treatment of other foreign-owned apps, raising questions about free speech and digital commerce. The Supreme Court’s decision may have far-reaching implications for the platform’s future and US-China relations.

TikTok appeals to Supreme Court to block looming US ban

TikTok and its parent company, ByteDance, have asked the Supreme Court to halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that the law violates the First Amendment, as it targets one of the most widely used social media platforms in the United States, which currently has 170 million American users. A group of TikTok users also submitted a similar request to prevent the shutdown.

The law, passed by Congress in April, reflects concerns over national security. The Justice Department claims TikTok poses a threat due to its access to vast user data and potential for content manipulation by a Chinese-owned company. A lower court in December upheld the law, rejecting TikTok’s argument that it infringes on free speech rights. TikTok maintains that users should be free to decide for themselves whether to use the app and that shutting it down for even a month could cause massive losses in users and advertisers.

With the ban set to take effect the day before President-elect Donald Trump’s inauguration, TikTok has urged the Supreme Court to decide by 6 January. Trump, who once supported banning TikTok, has since reversed his position and expressed willingness to reconsider. The case highlights rising trade tensions between the US and China and could set a precedent for other foreign-owned apps operating in America.

The US clock is ticking (for) TikTok

The ongoing TikTok legal saga in the USA has entered its most delicate phase yet, with a federal appeals court ruling to uphold a law that could force its Chinese parent company, ByteDance, to divest TikTok’s US operations by 19 January 2025 or face an unprecedented ban.

TikTok must now urgently appeal to the Supreme Court to either block or reverse a law mandating ByteDance’s sale of the popular short-video platform by 19 January, following an appeals court’s recent decision to deny additional time. TikTok and ByteDance submitted an emergency request to the US Court of Appeals for the District of Columbia, seeking an extension to present their arguments before the US Supreme Court.

With 170 million American users and billions in ad revenue, the platform, a digital giant particularly beloved by younger generations, now stands on the edge of a ban in its largest foreign market. At the centre of this unprecedented conflict lies a confluence of national security concerns, free speech debates, and economic implications far beyond TikTok.

The incipit of the current conflict can be traced back to 2020 when then-President Donald Trump attempted to ban TikTok and Chinese-owned WeChat, citing fears that Beijing could misuse Americans’ data or manipulate public discourse through the platforms. The courts blocked Trump’s effort, and in 2021, President Joe Biden revoked the Trump-era orders. Yet bipartisan concerns about TikTok’s ties to the Chinese government remain. Lawmakers and US intelligence agencies have long raised alarms about the vast amount of data TikTok collects on its American users and the potential for Beijing to exploit this information for espionage or propaganda. This year, Congress passed a bill with overwhelming support requiring ByteDance to divest its US assets, marking the strictest legal threat the platform has ever faced.

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The recent appeals court decision to uphold the law has been seen as necessary by Biden’s administration to protect US national security. The ruling cited the ‘well-substantiated threat’ posed by the Chinese government’s relationship with ByteDance, arguing that China’s influence over TikTok is fundamentally at odds with American free speech principles. Attorney General Merrick Garland praised the decision, calling it a crucial step in ‘blocking the Chinese government from weaponising TikTok.’ However, critics of the ruling, including free speech advocates and TikTok itself, have pushed back. The American Civil Liberties Union (ACLU) warned that banning the app would violate the First Amendment rights of millions of Americans who rely on TikTok to communicate and express themselves.

TikTok has vowed to appeal to the Supreme Court to halt the ruling before the 19 January deadline. Consequently, the Supreme Court’s decision will determine whether the platform will survive under ByteDance’s ownership or face a US ban. However, suspicions and obstacles loom even if ByteDance attempts to sell TikTok’s US operations. Any divestiture would need to prove the app is wholly independent of Chinese control—a requirement China’s laws make nearly impossible. ByteDance’s prized algorithm, the key to TikTok’s success, is classified as a technology export by Beijing and cannot be transferred without Chinese government approval.

TikTok, Person, People, Computer Hardware, Electronics, Hardware, Art

On the other hand, the economic consequences of a TikTok ban could be profound. Advertisers, who have collectively poured billions into the platform, are closely monitoring the situation. While brands are not yet pulling their marketing budgets, many are developing contingency plans to shift ad spending to rivals like Meta-owned Instagram, Alphabet’s YouTube, and Snap. These platforms, all of which have rolled out short-form video features to compete with TikTok, stand to reap enormous benefits if TikTok disappears from the US landscape. Meta’s stock price soared to an all-time high following the court ruling, reflecting investor optimism that its platforms will absorb TikTok’s market share.

Content creators and small businesses that rely on the app for income now face an uncertain future. Many influencers urge followers to connect with them on alternative platforms like Instagram, YouTube, and X (formerly Twitter) in case TikTok is banned. For small businesses, the situation is equally hard. TikTok’s integrated commerce feature, TikTok Shop, has exploded in popularity since its US launch in September 2023. This year, the platform generated $100 million in Black Friday sales, offering brands a unique and lucrative e-commerce channel. For merchants who have invested in TikTok Shop, a ban would mean losing a critical revenue stream with no comparable alternative.

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Yet TikTok’s rise in the US has transformed digital advertising and e-commerce and reshaped global supply chains. Like competitors Shein and Temu, TikTok Shop has connected American consumers with low-cost vendors, many of whom ship products directly from China. This dynamic reflects the extensive economic tensions underpinning the TikTok controversy. The USA, wary of China’s growing tech influence, has imposed strict export controls on Chinese technology and cracked down on perceived threats to its national security. Beijing, in turn, has retaliated with bans on critical minerals and stricter oversight of technologies leaving its borders. TikTok has become the latest and most visible symbol of this escalating US-China tech war.

The path forward is fraught with uncertainty. President Biden, whose administration has led the charge against TikTok, can extend the 19 January deadline by 90 days if he determines that a divestiture is in progress. This alternative would push the final decision to President-elect Donald Trump, who has offered mixed messages about his stance on TikTok. While Trump previously sought to ban the app, he now claims he would not enforce the new law. Nevertheless, the legislation has broad bipartisan support, making it unlikely that a new administration could simply ignore it. Tech companies, meanwhile, face legal risks if they continue to provide services to TikTok after the deadline. App stores like Apple and Google and internet hosting providers could face billions in fines if they fail to comply.

TikTok has launched Symphony Creative Studios globally, helping advertisers create customised, high-quality content through advanced AI tools.

The Chinese government’s role adds another layer of complexity. Beijing has fiercely opposed US efforts to force ByteDance into a sale, framing the TikTok dispute as a ‘commercial robbery’ designed to stifle China’s technological ambitions. By classifying TikTok’s algorithm as a protected export, China has clarified that any divestiture will be a lengthy and politically charged process if it happens at all. Either way, it leaves ByteDance caught between two powerful governments with irreconcilable demands.

For now, TikTok remains fully operational in the US, and its users continue to scroll, create, and shop as usual. However, the next few weeks will determine whether TikTok can escape its existential question or join the growing list of casualties in the US-China tech war. The outcome will shape the future of one of the world’s most influential social media platforms and set a precedent for how governments regulate foreign-owned technology in an era defined by digital dominance and geopolitical rivalry. Whether through divestiture, court intervention, or an outright ban, TikTok’s fate in the US marks a turning point in the ongoing struggle to balance national security, economic interests, and the free flow of information in an inter(net)connected world.

TikTok’s request to temporarily halt the US ban rejected by US court

TikTok’s deadline is approaching as its Chinese parent company, ByteDance, prepares to take its case to the US Supreme Court. A federal appeals court on Friday rejected TikTok’s request for more time to challenge a law mandating ByteDance to divest TikTok’s US operations by 19 January or face a nationwide ban. The platform, used by 170 million Americans, now has weeks to seek intervention from the Supreme Court to avoid a shutdown that would reshape the digital landscape.

The US government argues that ByteDance’s control over TikTok poses a persistent national security threat, claiming the app’s ties to China could expose American data to misuse. TikTok strongly disputes these assertions, stating that user data and content recommendation systems are stored on US-based Oracle servers and that moderation decisions are made domestically. A TikTok spokesperson emphasised the platform’s intention to fight for free speech, pointing to the Supreme Court’s history of defending such rights.

The ruling leaves TikTok’s immediate fate uncertain, placing the decision first in the hands of President Joe Biden, who could grant a 90-day extension if progress toward a divestiture is evident. However, Biden’s decision would give way to President-elect Donald Trump, who takes office just one day after the 19 January deadline. Despite his previous efforts to ban TikTok in 2020, Trump recently opposed the current law, citing concerns about its benefits to rival platforms like Facebook.

Adding to the urgency, US lawmakers have called on Apple and Google to prepare to remove TikTok from their app stores if ByteDance fails to comply. As the clock ticks, TikTok’s battle with the US government highlights a broader conflict over technology, data privacy, and national security. The legal outcome could force millions of users and businesses to rethink their digital strategies in a post-TikTok world.

DW Weekly #190 – 13 December 2024

 Page, Text

Dear readers,

The TikTok legal saga in the United States has reached a turning point after a federal appeals court upheld a law requiring its Chinese parent company, ByteDance, to divest its US operations by 19 January 2024 or face a nationwide ban. With 170 million American users and billions in ad revenue at risk, the conflict highlights concerns over national security, free speech, and economic fallout. While the Biden administration defends the law as necessary to counter China’s potential misuse of TikTok’s vast data troves, critics, including the ACLU, argue the ban infringes on First Amendment rights and suppresses a platform used for creativity and communication.

TikTok plans to appeal the ruling to the Supreme Court, but even a divestiture faces severe obstacles. China’s classification of TikTok’s algorithm as a protected technology export makes it nearly impossible for ByteDance to sell the app without Beijing’s approval. This key component of TikTok’s success, responsible for its highly personalised user experience, has turned the sale into a geopolitical dispute between the USA and China, with ByteDance caught in the middle.

 Person, Bulldozer, machine, Text

A ban would have far-reaching economic consequences, particularly for advertisers, influencers, and small businesses, and it would also touch on the First Amendment, which means freedom of speech. Brands that have poured billions into TikTok are already developing contingency plans to shift their budgets to rivals like Meta’s Instagram, YouTube, and Snap, all of which stand to gain significant market share. TikTok Shop, which recently generated $100 million in Black Friday sales, has become a vital e-commerce channel for merchants. A ban would sever a critical revenue stream for these businesses, leaving restricted alternatives in the marketplace.

The conflict also reflects a broader US-China tech rivalry. Washington has tightened restrictions on Chinese technology to safeguard national security, while Beijing has retaliated with bans on critical exports, which we examined in detail in the last weekly newsletter. TikTok has become the most visible flashpoint in this struggle, representing China’s technological ambitions and America’s fears of data misuse. Beijing has condemned the forced divestiture, framing it as a ‘commercial robbery’, signalling that any sale would be politically and logistically challenging.

The Biden administration, which has led the charge against TikTok, could extend the 19 January deadline by 90 days if meaningful progress toward a sale is shown. The legal move would push the final decision to President-elect Donald Trump, who has shifted his stance, now opposing the ban out of concern it would benefit rivals like Facebook. However, reversing course would be politically difficult with bipartisan support for the legislation. 

As TikTok’s future hangs in the balance, its fate will ultimately shape the global tech landscape, digital commerce, and cyber diplomatic power dynamics in the near future.

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A legal and political turmoil amidst presidential transition.

In other news..

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International Red Cross sets guidelines for AI use

The International Committee of the Red Cross (ICRC) has introduced principles for using AI in its operations, aiming to harness the technology’s benefits while protecting vulnerable populations.

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Justice Department pushes for TikTok divestment

The US Justice Department has urged a federal appeals court to reject TikTok‘s emergency request to delay a law requiring its Chinese parent company, ByteDance, to divest from the app by 19 January or face a nationwide ban. TikTok argued the law threatens to shut down one of America’s most popular social media platforms, which boasts over 170 million US users, while the Justice Department maintains that continued Chinese ownership poses a national security risk.

While the law would not immediately block users from accessing TikTok, the Justice Department admitted the lack of ongoing support would eventually render the app inoperable. A three-judge appeals court panel recently upheld the divestment requirement, and ByteDance has asked the US Supreme Court to review the case.

The controversy places TikTok’s future in the hands of the incoming presidential administration. President Joe Biden could grant a 90-day extension to the divestment deadline before President-elect Donald Trump, who has vowed to prevent a ban, takes office on January 20. Trump’s stance on TikTok has been consistent since his unsuccessful attempts to ban the app during his first term.

The law also strengthens the US government’s powers to ban other foreign-owned apps over data security concerns, following a broader trend initiated under Trump, including an earlier attempt to block Tencent-owned WeChat. As legal battles continue, TikTok’s operations in the US hang in the balance.

Canada TikTok unit requests court review of shutdown orders

TikTok‘s Canadian branch has filed an emergency motion with the country’s Federal Court to review a government order requiring it to cease operations due to national security concerns. The company, owned by China’s ByteDance, is challenging the December 5 order and seeking either its annulment or a return to the government for further review. The motion argues that shutting down TikTok’s Canadian operations could result in significant job losses.

The legal challenge comes after Canada began investigating TikTok’s plans to expand its business in the country last year. The investigation led to last month’s order, which did not block Canadian access to the app but mandated the company’s exit from the Canadian market. TikTok emphasised the importance of maintaining a local presence for its platform in Canada, where it has over 14 million monthly users.

Under Canadian law, the government can assess foreign investments’ risks to national security, though details of the investigations are kept confidential. The case follows similar actions in the US, where the government has pressured ByteDance to sell TikTok’s US assets by January 2025 or face a ban. TikTok is currently seeking a temporary block on this US law as well.

Sweden weighs social media age limits amid gang violence

The Swedish government is exploring age restrictions on social media platforms to combat the rising problem of gangs recruiting children online for violent crimes. Officials warn that platforms like TikTok and Snapchat are being used to lure minors—some as young as 11—into carrying out bombings and shootings, contributing to Sweden‘s status as the European country with the highest per capita rate of deadly shootings. Justice Minister Gunnar Strommer emphasised the seriousness of the issue and urged social media companies to take concrete action.

Swedish police report that the number of children under 15 involved in planning murders has tripled compared to last year, highlighting the urgency of the situation. Education Minister Johan Pehrson noted the government’s interest in measures such as Australia’s recent ban on social media for children under 16, stating that no option is off the table. Officials also expressed frustration at the slow progress by tech companies in curbing harmful content.

Representatives from platforms like TikTok, Meta, and Google attended a recent Nordic meeting to address the issue, pledging to help combat online recruitment. However, Telegram and Signal were notably absent. The government has warned that stronger regulations could follow if the tech industry fails to deliver meaningful results.

TikTok seeks emergency block to prevent US ban

TikTok and its parent company, ByteDance, have filed an emergency motion with a federal appeals court to temporarily halt a US law that would force ByteDance to sell TikTok by 19 January or face a nationwide ban. The companies argue that without the delay, the popular app could shut down in the US, affecting 170 million monthly users and numerous businesses reliant on the platform.

The motion follows a decision by an appeals court panel upholding the divestment requirement. TikTok’s lawyers assert the Supreme Court should have time to review the case and highlight President-elect Donald Trump’s stated intention to prevent the ban. The incoming administration, they argue, could reconsider the law and render the case moot.

The law granting the US government authority to ban foreign-owned apps over data security concerns has faced criticism, with TikTok warning the decision could disrupt services globally. As the January deadline looms, ByteDance faces challenges in demonstrating sufficient progress toward a divestment to secure an extension, even as political and legal battles intensify.