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The TikTok ban is headed to the Supreme Court

18 December 2024 at 08:49
TikTok's CEO Shou Chew wears a blue suit with a tie, sitting in front of two men wearing suits.
TikTok's CEO Shou Chew, pictured here at a congressional hearing, met with Donald Trump at Mar-a-Lago in December.

Chip Somodevilla/Getty Images

  • The Supreme Court has agreed to hear TikTok's case against a forced sale or ban.
  • It may be TikTok's last hope at staying in the US, as it lost its case in the DC Circuit.
  • President-elect Donald Trump may also try to save TikTok, though his options are limited.

The Supreme Court has agreed to hear oral arguments on January 10 around the TikTok divest-or-ban law. It could be TikTok's last hope of maintaining a presence in the US.

TikTok is challenging an April bill passed by Congress that required its owner, ByteDance, to divest from its US app or see it removed from app stores on January 19.

Congress has called TikTok a national security risk because its parent company is based in China, a country the US government views as a foreign adversary. US officials worry that TikTok could be used as a propaganda tool by the Chinese Communist Party. Members of Congress are also concerned that TikTok's US user data could end up in the hands of the CCP. TikTok has previously said that it does not share information with the Chinese government and relies on a US-based team to moderate content "independently from China."

TikTok filed a lawsuit against the legislation in the DC Circuit Court in May, arguing that it violated its users' First Amendment rights. The company lost its case earlier this month and filed an appeal to the Supreme Court, requesting an injunction to stop enforcement of the law until it can argue its case to the highest court. The Supreme Court has not yet agreed to pause enforcement of the law, though oral arguments will start before the ban is set to take effect.

It's not clear that the Supreme Court will be any more favorable to TikTok than the DC Circuit Court judges. In a recent report, Matthew Schettenhelm, a senior litigation analyst at Bloomberg Intelligence, gave the company a 20% chance of reversing its loss at the Supreme Court.

If the Supreme Court opts not to rescue TikTok, Donald Trump may still try to, though his options are limited. The incoming president met with TikTok's top executive, Shou Chew, on Monday, and said during a press conference that day that he would "take a look at TikTok" and had "a warm spot in my heart for TikTok."

If TikTok is pulled from app stores in early 2025, it would disrupt the businesses of some creators who rely on the app to make money. While many creators have built audiences on other short-video platforms like YouTube shorts and Instagram reels, TikTok is still the main hub for some talent. E-commerce sellers that lean heavily on TikTok's feature Shop will also have to pivot in the wake of a ban.

"A ban would be detrimental to up-and-coming creators and small businesses that rely solely or primarily on the app," Jasmine Enberg, the vice president and principal analyst at EMARKETER, told BI earlier this month. "Big brands and established creators would also be disrupted, but can better withstand the upheaval as they're more likely to have diversified their channels and have large, engaged audiences on other platforms."

Read the original article on Business Insider

Meet Shou Zi Chew, the 41-year-old CEO leading TikTok as it fights a potential US ban

17 December 2024 at 10:04
shou zi chew tiktok ceo
Shou Zi Chew is the face of TikTok's effort to stay up and running in the US.

Kin Cheung/AP

  • TikTok CEO Shou Zi Chew is the public face of the company, rallying its fans and testifying before Congress.
  • He's 41 years old, went to Harvard Business School, and interned at Facebook when it was a startup.
  • He met with president-elect Donald Trump recently as he continues his fight to avoid a TikTok ban in the US.

TikTok is under a lot of pressure right now.

As US lawmakers worry the video-sharing platform, which is owned by Chinese company ByteDance, poses a danger to national security, TikTok is scrambling to fight a law requiring it be sold to a US owner by January 19 or else risk being banned in the country.

So who's leading the company through this turbulent period?

That would be Shou Zi Chew, TikTok's 41-year-old CEO from Singapore, who got his start as an intern at Facebook.

Here's a rundown on TikTok's head honcho:

Chew worked for Facebook when it was still a startup.
facebook mark zuckerberg
Facebook's Mark Zuckerberg in 2010, before he took his company public.

Marcio Jose Sanchez/AP

He earned his bachelor's degree in economics at the University College London before heading to Harvard Business School for his MBA in 2010.Β 

While a student there, Chew worked for a startup that "was called Facebook," he said in a post on Harvard's Alumni website. Facebook went public in mid-2012.

Β 

Chew met his now-wife, Vivian Kao, via email when they were both students at Harvard.
Shou Zi Chew and Vivian Kao attend The 2022 Met Gala
Shou Zi Chew and Vivian Kao attend The 2022 Met Gala.

Theo Wargo/WireImage

They are "a couple who often finish each other's sentences," according to the school's alumni page, and have three kids.

Chew was CFO of Xiaomi before joining Bytedance.
Shou Zi Chew and Xiaomi CEO give thumbs up at the listing of Xiaomi at the Hong Kong Exchanges on July 9, 2018
Shou Zi Chew and Xiaomi's CEO give thumbs up at the listing of Xiaomi at the Hong Kong Exchanges on July 9, 2018

REUTERS/Bobby Yip

He became chief financial officer of the Chinese smartphone giant, which competes with Apple, in 2015. Chew helped secure crucial financing and led the company through its 2018 public listing, which would become one of the nation's largest tech IPOs in history.Β 

He became Xiaomi's international business president in 2019, too.
TikTok CEO Shou Zi Chew in Washington, DC on Tuesday February 14, 2023.
TikTok CEO Shou Zi Chew in Washington, DC on Tuesday, February 14, 2023.

Matt McClain/The Washington Post/Getty Images.

Before joining Xiaomi, Chew also worked as an investment banker at Goldman Sachs for two years, according to his LinkedIn profile.

He also worked at investment firm DST, founded by billionaire tech investor Yuri Milner, for five years. It was during his time there in 2013 that he led a team that became early investors in ByteDance, as the Business Chief and The Independent reported.

For a while, Chew was both the CEO of TikTok and the CFO of its parent company, ByteDance.
zhang yiming bytedance
ByteDance founder Zhang Yiming

Zheng Shuai/VCG via Getty Images

Chew joined ByteDance's C-suite in March 2021, the first person to fill the role of chief financial officer at the media giant.

He was named CEO of TikTok that May at the same time as Vanessa Pappas was named COO. Bytedance founder and former CEO Zhang Yiming said at the time that Chew "brings deep knowledge of the company and industry, having led a team that was among our earliest investors, and having worked in the technology sector for a decade."

That November, it was announced that Chew would leave his role as ByteDance's CFO to focus on running TikTok.

TikTok's former CEO, Kevin Mayer, had left Walt Disney for the position in May 2020 and quit after three months as the company faced pressure from lawmakers over security concerns.

Some government officials in the US and other countries remain concerned that TikTok's user data could be shared with the Chinese government.
Biden
The Biden administration has demanded that TikTok divest its American business from ByteDance or risk being banned.

Jacquelyn Martin, Pool

Donald Trump's administration issued executive orders designed to force ByteDance into divesting its TikTok US operations, though nothing ever happened.

President Biden signed an executive order in June 2021 that threw out Trump's proposed bans on the app.

Last year, the Biden administration demandedΒ that TikTok divestΒ its American business from its Chinese parent company or risk being banned in the US. In response, Chew said such a divestmentΒ wouldn't solve officials' security concerns aboutΒ TikTok.

In a TikTok last March, Chew announced the company has amassed 150 million monthly active users in the US and broached the subject of the ban threats.
Shou Zi Chew, TikTok's CEO
Chew took to TikTok to discuss the ban threats.

TikTok

"Some politicians have started talking about banning TikTok," he said. "Now this could take TikTok away from all 150 million of you."

Chew testified before Congress that month about the company's privacy and data security practices.

Wall Street said his testimony didn't do much to help his case to keep TikTok alive in the US, though Chew seemed to win over many TikTok users, with some applauding his efforts and even making flattering fancam edits of him.

Now, Chew and TikTok are in the spotlight again as the company tries to stave off a looming potential ban.
TikTok CEO Shou Zi Chew testifies during a House Energy and Commerce Committee hearing on Thursday, March 23, 2023.
TikTok CEO Shou Zi Chew testifies during a House Energy and Commerce Committee hearing on Thursday, March 23, 2023.

Kent Nishimura / Los Angeles Times via Getty Images

The House of Representatives passed a bill on March 13 that would require any company owned by a "foreign adversary" to divest or sell to a US-based company within 180 days to avoid being banned in the US.

Chew put out a video response shortly after, asking users to "make your voices heard" and "protect your constitutional rights" by voicing opposition to lawmakers.

He called the vote "disappointing" and said the company has invested in improving data security and keeping the platform "free from outside manipulation."

"This bill gives more power to a handful of other social media companies," he added. "It will also take billions of dollars out of the pockets of creators and small businesses. It will put more than 300,000 American jobs at risk."

The Senate also passed the bill, and President Biden signed it into law in April.

In September, a hearing on the potential TikTok ban began in federal appeals court and in December, a three-judge panel from the US Court of Appeals for the District of Columbia Circuit ruled that the law is constitutional.

On the heels of the bad news, Chew met with the president-elect at Mar-a-Lago several days later.
Donald Trump
Chew and Trump recently met.

Jeff Bottari/Zuffa LLC via Getty Images

Trump said in a press conference on the day they met that he has a "warm spot" for TikTok, which he has criticized in the past, because he says it helped him win over young voters in the 2024 election.

Also on the day of their meeting, TikTok asked the Supreme Court to block the law that requires it be sold to avoid a shutdown, arguing that it violates Americans' First Amendment rights.

When he's not fighting efforts to ban TikTok, Chew makes appearances at some pretty high-profile events.
TikTok CEO Shou Zi Chew departs after Congress Testimony
Shou Zi Chew leaves Congress on March 23.

Kent Nishimura / Los Angeles Times via Getty Images

He's been seen at the Met Gala, and also posted about attending the 2023 Super Bowl and even Taylor Swift's Eras Tour.

His hobbies include playing video games like Clash of Clans and Diablo IV, golfing, and reading about theoretical physics.

Read the original article on Business Insider

Can Trump save TikTok? Here's where his cabinet picks stand on a TikTok ban.

President-elect Donald Trump.
President-elect Donald Trump's stance on a TikTok ban has changed over time, but his cabinet picks have been more resolute.

Jaap Arriens/NurPhoto via Getty Images

  • President-elect Donald Trump once supported a US ban on TikTok.
  • Then, during the 2024 presidential campaign, Trump said he would "save TikTok."
  • His cabinet picks might indicate what position he'll ultimately take once in office.

President-elect Donald Trump's views on whether TikTok, which a Chinese company owns, poses a threat to the United States have shifted 180 degrees.

Will they come full circle?

In April, lawmakers concerned about Chinese influence passed a law giving ByteDance, the Chinese owner of TikTok, a deadline of January 19 to sell its social media app to a non-Chinese company or face a nationwide ban. TikTok appealed, but on Friday, a federal courtΒ upheld the law, siding with the Biden administration's argument that the service poses a national security threat.

In 2020, Trump unsuccessfully sought to ban TikTok in the United States but has since had a change of heart. During the 2024 campaign, Trump said young people would "go crazy without it." Trump's own TikTok accounts generated millions of views.

Which side Trump ultimately lands on the issue could have a major impact on ByteDance and TikTok, which says it has over 170 million users in the United States. Even if the law is upheld after future appeals, Trump could choose not to enforce it during his presidency.

Trump's closest advisors, however, might have something to say about that. Some of Trump's top cabinet nominees support a TikTok ban.

Sen. Marco Rubio of Florida β€” Trump's nominee for secretary of state β€” called a ban a "win for America" earlier this year. Trump's pick for Federal Communications Commission chair, Brendan Carr, also advocated for a TikTok ban in Project 2025, a road map for the first 180 days of a new Republican presidency that the Heritage Foundation, a conservative think tank, published in 2023.

Carr wrote in the plan that TikTok is part of a Beijing "foreign influence campaign by determining the news and information that the app feeds to millions of Americans."

Project 2025 refers to TikTok as "a tool of Chinese espionage" that is "highly addictive" and "especially popular with teenage girls."

"The ties between TikTok and the Chinese government are not loose, and they are not coincidental," the document reads.

John Ratcliffe, the former US director of national intelligence, is Trump's pick for CIA director. Ratcliffe, also an author of Project 2025, told Fox News in 2022 that he thinks TikTok is a "national security threat."

Govs. Doug Burgum of North Dakota, Trump's pick for interior secretary, and Kristi Noem of South Dakota, the president-elect's choice for Homeland Security secretary, both previously banned the app from state-owned devices.

TikTok has denied accusations that it influences content inside the United States or is addictive to children.

A spokesperson for TikTok told Business Insider that the TikTok ban law was "conceived and pushed through based upon inaccurate, flawed and hypothetical information, resulting in outright censorship of the American people."

"The Supreme Court has an established historical record of protecting Americans' right to free speech, and we expect they will do just that on this important constitutional issue," the spokesperson said.

Read the original article on Business Insider

Ultrawealthy investors are vying to buy TikTok — here's what some would do if they took over the mega-app

8 December 2024 at 14:01
TikTok Congress
The US Appeals Court upheld a decision forcing the sale of TikTok from its China-based parent company, ByteDance, lest the short-form video platform be banned in the US.

Celal Gunes/Anadolu via Getty Images

  • The US Appeals Court upheld a decision forcing the sale of TikTok lest it be banned in the US.
  • Several investors, philanthropists, and tech giants are interested in buying the company.
  • Here's what they've said they'd do with the short-form video platform if they bought it.

On Friday, a panel of three judges from the US Court of Appeals for the District of Columbia Circuit upheld a law that will ban TikTok from app stores in the United States if the social media platform's parent company, the China-based ByteDance, doesn't sell its stake in the app by January 19.

In a statement about the decision, TikTok said it would appeal the decision to the Supreme Court on First Amendment grounds.

"Unfortunately, the TikTok ban was conceived and pushed through based upon inaccurate, flawed, and hypothetical information, resulting in outright censorship of the American people," TikTok's statement read. "The TikTok ban, unless stopped, will silence the voices of over 170 million Americans here in the US and around the world on January 19th, 2025."

With the app's uncertain future in the United States, a slate of ultrawealthy investors has expressed interest in buying the social media platform.

Big-name buyers, from Kevin O'Leary of "Shark Tank" to former Dodgers owner Frank McCourt, have said for months that they are prepared to step in if ByteDance changes its mind or the Supreme Court decides the ban can proceed.

Here's what those who've said publicly that they want to buy TikTok would do with the platform if they acquired the app.

Representatives for TikTok did not respond to a request for comment from Business Insider.

Kevin O'Leary

In March, the "Shark Tank" mogul told CNBC he wanted to assemble a syndicate of investors to purchase the platform for about $20 to $30 billion β€” a fraction of its $220 billion valuation in its last funding round.

"It's the largest entertainment and business network in America as it stands today, so it's of great interest and great value," he told the outlet.

However, O'Leary said a sale likely wouldn't include TikTok's signature algorithms, so he or another purchaser would have to "re-emulate" the app's algorithms and act as a "steward" to transform the platform from "TikTok China to TikTok U.S.A."

It's unclear exactly how O'Leary might change TikTok's algorithms; however, similar short-form video services exist elsewhere on social media with their own proprietary algorithms, and he said a new version could be created under the existing TikTok brand.

Representatives for O'Leary did not respond to a request for comment from Business Insider.

Steven Mnuchin

The former treasury secretary in March said he was putting together an investor group to try to purchase TikTok, CNBC reported.

Mnuchin didn't specify any other potential investors involved in the bid or the dollar amount they planned to offer for the social media site. In a May interview with Bloomberg Television, he said he'd replicate the app's signature algorithm to continue the service.

"My plan, if we were to purchase, it would be to rebuild the technology under US leadership, make sure that it's all disconnected from ByteDance going forward, and that it is very robust and secure," Mnuchin said.

Representatives for Mnuchin did not respond to a request for comment from Business Insider.

Bobby Kotick

The Wall Street Journal reported in March that the former chief executive of Activision was considering bidding for TikTok. The outlet reported the exact amount of his proposal was unspecified but would likely be in the hundreds of billions of dollars.

The Journal reported Kotick approached OpenAI CEO Sam Altman and other possible investors during a dinner at an Allen & Co. conference, discussing a potential deal that could allow OpenAI to train its artificial intelligence models on the data gathered from the app.

A spokesperson for Kotick told Business Insider, "Mr. Kotick has always believed a comprehensive reciprocal trade framework is preferable to singling out an individual company, and he still does."

Frank McCourt

The former Dodgers owner and former CEO of McCourt Global has turned democratizing and improving the internet into a major philanthropic focus through his Project Liberty project. The company announced in March that McCourt had put together a bid to purchase TikTok.

McCourt, during a December 8 appearance on CBS News, said he had "circled over $20 billion" for the potential sale.

"We're very serious about raising whatever capital is required to buy the platform and to be clear, we're looking to move the 170 million users over to a new protocol where the individuals will own and control their identity and their data," McCourt said. "We're not looking to replicate the existing version."

The billionaire businessman has titled his TikTok purchase project "The People's Bid." He has secured the backing of Guggenheim Securities, an investment banking firm, and Kirkland & Ellis, one of the world's largest law firms.

McCourt told CBS that the People's Bid aims to protect user privacy and move users to "a new stack where you can't harvest without permission, so individuals will own and control their identity and their data" to promote an internet service that respects its users "as opposed to exploits them."

A spokesperson for McCourt directed Business Insider to a public statement by the billionaire following the Appeals Court decision upholding the law which could force the sale of the app.

"Now that the Court has spoken, The People's Bid is prepared to move forward with our bid for TikTok," McCourt's statement reads. "We are going to rebuild TikTok and prove that it's possible to enjoy the internet without sacrificing our privacy and safety."

Other possible investors

Other big names have previously shown interest in buying TikTok, including Microsoft, which in 2020 tried and failed to acquire the platform when, during his first administration in August 2020, President Donald Trump, citing concerns about ByteDance's ties to Beijing, issued executive orders forcing ByteDance to sell its TikTok US operations to an American company.

Walmart and the software company Oracle also assembled a bid to buy TikTok in 2020, but TikTok ultimately defeated Trump's orders in court and the acquisition plans did not materialize.

The companies have not publicly said whether they would make another offer now. Walmart, Oracle, and Microsoft representatives did not immediately respond to requests for comment from Business Insider sent over the weekend.

Read the original article on Business Insider

The US provided no evidence that China manipulates TikTok content inside the country, court says

7 December 2024 at 13:11
TikTok
A federal appeals court upheld a law that could ban TikTok in the United States as constitutional.

credit should read CFOTO/Future Publishing via Getty Images

  • The court that upheld a law that could ban TikTok said the US showed no evidence China manipulates content.
  • However, the court said TikTok has manipulated content at China's request elsewhere.
  • TikTok denies content manipulation and says it expects the US Supreme Court to reverse the ban.

The appeals court that upheld a law that could ban TikTok in the United States said the government offered no evidence that China is manipulating content on the platform in the United States.

However, the panel of judges wrote in their opinion that evidence that China has compelled TikTok to manipulate content elsewhere was enough for it to uphold a federal law signed by President Joe Biden that would force TikTok's sale in the United States to an American company or ban it from app stores.

The US District Court of Appeals of the District of Columbia found on Friday in a majority opinion that the federal law is constitutional. The law, which was passed in April, requires TikTok's Chinese parent company, Bytedance, to divest from the company by January 19 or face a ban in the United States.

US officials across political lines have worried that TikTok poses a national security risk because of its Chinese ownership. Some members of Congress have said they fear that TikTok could be used as a propaganda tool to push narratives favorable to China's Communist Party.

In statements supporting the bill, Democratic Massachusetts Rep. Jake Auchincloss called TikTok "a tool of censorship and propaganda" for the Chinese Communist Party, and Republican Nebraska Rep. Mike Flood said the app has "been used as a tool of propaganda in our country."

Still, the federal appeals court wrote in its majority opinion that the government did not present any evidence that China has tried to manipulate content on TikTok in the United States.

"The Government acknowledges that it lacks specific intelligence that shows the PRC has in the past or is now coercing TikTok into manipulating content in the United States," the opinion says, referring to the People's Republic of China. However, the government argued in court that ByteDance and TikTok have censored content at China's request in other countries.

The appeals court wrote that TikTok "never squarely denies" that it has ever manipulated content on its platform at China's request, which it says is "striking" given the intelligence community's concerns. The court concluded that Bytedance and TikTok have "a demonstrated history" of manipulating content in other countries, sometimes at the request of China.

"That conclusion rests on more than mere speculation," the judges wrote in the court opinion. "It is the Government's 'informed judgment' to which we give great weight in this context, even in the absence of 'concrete evidence' on the likelihood of PRC-directed censorship of TikTok in the United States."

TikTok argued in court that its "recommendation engine," or algorithm, is not based in China because it is stored in the Oracle cloud. The court said that while this is correct, ByteDance still controls the source code for TikTok, including the recommendation engine.

"TikTok is therefore correct to say the recommendation engine 'is stored in the Oracle cloud,' but gains nothing by flyspecking the Government's characterization of the recommendation engine still being in China," the document says.

A TikTok spokesperson said in a statement to Business Insider that the TikTok ban "was conceived and pushed through based on inaccurate, flawed, and hypothetical information, resulting in outright censorship of the American people."

"The Supreme Court has an established historical record of protecting Americans' right to free speech, and we expect they will do just that on this important constitutional issue," TikTok said in the statement.

Like many social media networks, TikTok has faced intense scrutiny for how the app is used to influence elections. The company this week announced that it removed three "influence networks" on the app that attempted to impact an election in Romania after a probe by the country's defense council. The company said it removed at least 40 similar influence campaigns this year.

Read the original article on Business Insider

Court upholds TikTok ban in US

6 December 2024 at 07:35
Photo illustration of TikTok logo stretched into judge's gavel
A court upheld a federal law that forces TikTok in the US to sell to an American company or face a ban.

Gearstd/iStock, Tyler Le/BI

  • A panel of judges ruled that a law forcing the sale or ban of TikTok in the US is constitutional.
  • The panel heard arguments about national security and the First Amendment.
  • The case is likely to be appealed to the Supreme Court. Once in office, Trump may also intervene.

TikTok's future in the US is looking dimmer.

A three-judge panel from the US Court of Appeals for the District of Columbia Circuit ruled on Friday that a law designed to force a TikTok sale or ban is constitutional.

Congress passed the law, called the Protecting Americans from Foreign Adversary Controlled Applications Act, in April. The law makes it illegal for companies like Apple and Google to host apps owned by a foreign adversary that permit users to "create an account or profile to generate, share, and view text, images, videos, real-time communications, or similar content."

It identified TikTok and its owner, ByteDance, as covered companies. ByteDance operates in China, which the US has deemed a foreign adversary.

The law gave ByteDance until January 19 to either divest itself of TikTok's US assets or be booted from app stores.

TikTok challenged the law in May, arguing that it violated its users' First Amendment rights. Its argument failed.

"The First Amendment exists to protect free speech in the United States," the court ruling says. "Here the Government acted solely to protect that freedom from a foreign adversary nation and to limit that adversary's ability to gather data on people in the United States."

TikTok said in response to the ruling on Friday that the law amounts to government censorship of the over 170 million Americans who use the app.

"The Supreme Court has an established historical record of protecting Americans' right to free speech, and we expect they will do just that on this important constitutional issue," TikTok said.

Why did the US government target TikTok?

US officials in both parties have worried that the app poses a national security risk because of its Chinese owner. Some have raised concerns that ByteDance could be required to pass along US user data to the Chinese Communist Party, as mandated by a national intelligence law. Members of Congress have also said they fear that TikTok could be used as a propaganda tool to push narratives favorable to the CCP.

TikTok has said it doesn't share information with the Chinese government and emphasized that its content moderation is managed by a US-based team that "operates independently from China."

TikTok is likely to appeal the decision, and it may end up in front of the Supreme Court. If the Supreme Court upholds the ruling, TikTok may have a savior in President-elect Donald Trump.

Trump once tried to ban TikTok, but he's since flip-flopped and said he'd try to rescue the app once in office.

Legal experts previously told BI that the incoming president could instruct his Justice Department to not enforce the divest-or-ban law, or make a claim that it simply doesn't apply to TikTok. Both strategies may be tough to defend against a legal challenge, particularly if the Supreme Court rules against TikTok.

Trump could also try to broker a sale of TikTok to a new owner that isn't tied to a foreign adversary.

ByteDance has said it wouldn't sell TikTok's US assets, but it may be more open to the idea if other options are off the table.

Some members of Congress seem to prefer a sale. Rep. John Moolenaar, the chairman of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, told BI in November that the Trump administration would "have a unique opportunity to broker an American takeover of the platform, allowing TikTok users to continue to enjoy a safer, better version of the app free from foreign-adversary control."

Read the original article on Business Insider

Will TikTok be banned? Here are the latest details on the app's legal fight to stay in the US and Trump's options

18 December 2024 at 08:22
TikTok CEO Shou Chew walks in Washington D.C. wearing a blue suit.
TikTok CEO Shou Chew is fighting for his company's future in the US.

Anna Moneymaker/Getty Images.

  • TikTok could be pulled from US app stores as early as January 19.
  • Without a last-minute sale or presidential or Supreme Court intervention, TikTok's US future is dim.
  • Business Insider is tracking TikTok's battle for survival as its US divestment deadline nears.

TikTok could soon be gone from the US.

Congress passed a law inΒ AprilΒ that set a nine-month deadline for TikTok's owner, ByteDance, to divest from the app or be booted from US app stores. The US government is on track to force the app out on January 19, the day before Donald Trump takes office. There's a possibility that President Joe Biden could extend that deadline by 90 days, but he hasn't said he will.

So will a TikTok ban actually happen?

Many of the app's stakeholders are acting as if it won't. TikTok employees, business partners, and creators are going about their business largely as usual, even with a divestment deadline looming. Some may expect the ban attempt to fail, as it has in the past.

Read more about why TikTok's main constituents aren't panicking about a ban.

TikTok Creator Summit
TikTok did not address the prospect of a ban at its Los Angeles creator summit in November.

Amanda Perelli/Business Insider

TikTok has faced threats of banishment at both the state and the federal level before, and judges have repeatedly struck down ban attempts following legal challenges.

It challenged the divest-or-ban law in the US Court of Appeals for the District of Columbia Circuit, but the three-judge panel ruled against the company in December. That outcome was expected, as September oral arguments didn't go well for the company and judges in the DC Circuit tend to be deferential to Congress on issues of national security, even in cases where Americans' First Amendment rights are at stake, legal experts previously told Business Insider.

"The First Amendment exists to protect free speech in the United States," the ruling says. "Here the Government acted solely to protect that freedom from a foreign adversary nation and to limit that adversary's ability to gather data on people in the United States."

While there is bipartisan support in Congress for a TikTok ban, support for a ban is fading among the American public. In a Pew Research Center survey of US adults from July and August, about one in three respondents (32%) supported a government ban, down from 50% in March 2023.

If the courts don't save TikTok, will Trump?

On December 9, TikTok filed an emergency motion for an injunction to stop the ban until its "appeal of the decision by the Court of Appeals for the DC Circuit is heard by the US Supreme Court." That motion was denied on Friday by the court, leaving it to the Supreme Court to decide TikTok's fate.

On Monday, TikTok filed an emergency request to the Supreme Court for an injunction against enforcement of the law. The court has agreed to hear oral arguments on January 10. Besides the Supreme Court, TikTok may have another path to survival.

Trump has said he would try to save TikTok once in office, a flip-flop from his position during his first presidential term. He met with TikTok's CEO Shou Chew on December 16, and said during a press conference that day that he would "take a look at TikTok" and had "a warm spot in my heart for TikTok."

Legal experts previously told BI that Trump could try a few tactics to keep TikTok around, including telling his Justice Department not to enforce the divest-or-ban law or attempting to skirt it through strategic interpretations of its text. Both strategies would be tough to pull off, however.

"Because the law was enacted by Congress, I'm not sure how much wiggle room a future Trump administration would have to ignore it," G.S. Hans, a clinical professor of law at Cornell Law School, previously told BI.

Read more about the obstacles facing Trump if he decides to try to rescue TikTok.

TikTok content creators gather outside the Capitol
TikTok's supporters have rallied in Washington, DC, to keep the app around.

Nathan Posner/Anadolu Agency via Getty Images

Trump could also try to broker a sale of TikTok's US assets to a non-Chinese company, a remedy prescribed in the divest-or-ban law. ByteDance has previously said it wouldn't sell TikTok, but it could be the simplest option for keeping the app around in the US.

A TikTok sale seems to be the preferred path forward among some members of Congress. Rep. John Moolenaar, the chair of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, told BI in a statement that the Trump administration "will have a unique opportunity to broker an American takeover of the platform, allowing TikTok users to continue to enjoy a safer, better version of the app free from foreign adversary control."

The Chinese government may block ByteDance from selling TikTok's US assets, and a TikTok sale could become a bargaining chip in larger US-China trade negotiations.

Why TikTok is a main character in the US-China trade wars

Government officials have been worried about TikTok's growing influence in the US for years.

Its owner, ByteDance, is based in China, a country the US has deemed a foreign adversary. This has sparked fears among some officials that the company could be compelled to hand over sensitive US user data from TikTok to the Chinese Communist Party. Some members of Congress have raised concerns that TikTok could be used as a CCP propaganda tool.

TikTok has previously said that it does not share information with the Chinese government and that its content-moderation efforts are run by a US-based team that "operates independently from China."

TikTok's CEO Shou Chew wears a blue suit with a tie, sitting in front of two men wearing suits.
Chew has testified before Congress.

Chip Somodevilla/Getty Images

Other companies may also become targets of the divest-or-ban law

TikTok may not be the only company under threat come January.

ByteDance owns several other apps, such as its video-editing tool, CapCut, and Pinterest-like app, Lemon8, that could also be subject to the Protecting Americans from Foreign Adversary Controlled Applications Act.

The bill's text specifically names TikTok and ByteDance as covered companies. But its language is fairly broad and could affect any company that is owned by a foreign adversary and permits a user to "create an account or profile to generate, share, and view text, images, videos, real-time communications, or similar content" (i.e., social media).

The bill's framework excludes platforms where users "post product reviews, business reviews, or travel information and reviews," however, which suggests that the Chinese e-commerce platforms Shein and Temu would remain safe.

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