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.
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.
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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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.
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.
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 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.
TikTok Shop has experienced remarkable growth during the holiday shopping season in the US, with consumers flocking to the platform for deals. Launched in September 2023, it has quickly emerged as a major player in e-commerce, offering merchandise from top brands like e.l.f. Cosmetics and Ninja Kitchen. According to the platform, sales reached $100 million on Black Friday alone, driven by increased adoption among its 170 million US users.
Merchants and influencers have embraced TikTok Shop’s unique model, which combines advertising and live shopping streams. The number of live sessions hosted monthly has nearly tripled in the past year, showcasing products that appeal to buyers through targeted content. Some shoppers have noted faster delivery times compared to Amazon, enhancing TikTok’s competitive edge.
The platform’s success comes as its parent company, ByteDance, faces a looming divestiture mandate in the US to avoid a ban. Analysts suggest such a move could significantly impact TikTok Shop, which has become a vital revenue stream for many brands. Marketing experts describe it as an irreplaceable channel that is excelling in connecting shoppers with tailored content.
Competition remains intense with rivals like Shein and Temu, which also target US consumers with low-cost goods. TikTok Shop continues to gain market share, buoyed by its ability to curate personalised shopping experiences and capitalise on the social media platform’s immense popularity.
American TikTok creators are urging their followers to connect on platforms like Instagram and YouTube after a federal appeals court upheld a law that could ban TikTok in the US unless its Chinese parent company, ByteDance, sells its American operations by January 19. The looming deadline has sparked anxiety among creators and businesses reliant on TikTok’s vast reach, which includes 170 million US users.
The platform’s popularity, especially among younger audiences, has turned it into a hub for creators, advertisers, and small businesses, with features like TikTok Shop driving significant economic activity. Some creators, like social media influencer Chris Mowrey, expressed fears about losing their livelihoods, emphasising the potential economic blow to small enterprises and content creators.
While some users are bracing for a shutdown, others remain sceptical about the ban’s likelihood, holding off on major changes until more clarity emerges. In the meantime, creators like Chris Burkett and SnipingForDom are diversifying their presence across platforms to safeguard their communities and content. For many, the uncertainty surrounding TikTok’s future is a stark reminder of the fragile nature of digital ecosystems.
A US federal appeals court has upheld a law requiring TikTok’s Chinese parent company, ByteDance, to sell its US operations by 19 January or face a nationwide ban. The ruling marks a significant win for the Justice Department, citing national security concerns over ByteDance’s access to Americans’ data and its potential to influence public discourse. TikTok plans to appeal to the Supreme Court, hoping to block the divestment order.
The decision reflects bipartisan efforts to counter perceived threats from China, with Attorney General Merrick Garland calling it a vital step in preventing the Chinese government from exploiting TikTok. Critics, including the ACLU, argue that banning the app infringes on First Amendment rights, as 170 million Americans rely on TikTok for creative and social expression. The Chinese Embassy denounced the ruling, warning it could damage US-China relations.
Unless overturned or extended by President Biden, the law could also set a precedent for restricting other foreign-owned apps. Meanwhile, TikTok’s rivals, such as Meta and Google, have seen gains in the wake of the decision, as advertisers prepare for potential shifts in the social media landscape.
The European Union has directed TikTok to retain data related to Romania’s elections under the Digital Services Act, citing concerns over foreign interference. The move follows pro-Russia ultranationalist Calin Georgescu’s unexpected success in the presidential race’s first round, raising alarm about coordinated social media promotion.
Declassified documents revealed TikTok’s role in amplifying Georgescu’s profile via coordinated accounts and paid algorithms, despite his claim of no campaign spending. Romania‘s security agencies have flagged these efforts as ‘hybrid Russian attacks,’ accusations Russia denies.
TikTok stated its cooperation with the EU in addressing concerns and pledged to establish facts amid allegations. Romania’s runoff presidential vote is seen as pivotal for the country’s EU alignment.
