The U.S. Supreme Court is set to hear arguments from TikTok and ByteDance, its China-based owner, on Friday. ByteDance is seeking an injunction against a bill signed by President Joe Biden that bans short-form video apps starting January 19 unless they are divested from ByteDance. TikTok argues that the sale would be impossible and is seeking an injunction to suspend the ban pending legal proceedings.
Over 170 million Americans use TikTok, and the company’s lawyers claim that banning the app violates the First Amendment rights of many users. Despite this argument, the federal appeals court upheld the ban in December. The bill received bipartisan support from Congress in April over concerns that China could spread propaganda through the app.
Starting on January 19, new users will be unable to download TikTok, and existing users will not be able to update the app. Lawmakers have instructed major app stores, like Apple Inc. and Google, to be prepared to remove TikTok from their platforms on that date.
TikTok’s 7,000 U.S. employees are uncertain about their future. Some new roles are still being advertised by the company, but there is pessimism among employees following the court’s decision to uphold the anti-sale law in December. Advertisers are also considering their options, with some planning to continue advertising on TikTok even after January 19.
TikTok has insisted that it cannot be sold, but potential buyers, like Frank McCourt, have expressed interest in acquiring the app. McCourt has secured commitments from investors for a bid and hopes to negotiate a sale with ByteDance.
State-level bans, like the one planned in Montana, have faced legal challenges. In China, a forced sale of TikTok may require approval from Beijing authorities, which could prove to be a significant hurdle.
Source: www.theguardian.com
