TikTok has formally asked the US Supreme Court to review a federal appeals court decision that upheld legislation potentially banning the app in the US. The controversial law, backed by President Joe Biden's administration, requires the popular social media platform to sever ties with its China-based parent company, ByteDance, or face a nationwide ban.
The legal documents, filed Monday, come on the heels of a ruling by a three-judge panel of the same appeals court. Last week the committee sided with the government, saying the law requiring TikTok to divest from ByteDance is constitutional. According to the document, if the legislation is maintained, TikTok will face a US ban effective January 19, 2025, a move that TikTok and ByteDance say would have catastrophic consequences for the platform and its millions of American users.
TikTok, which boasts more than 170 million users in the United States, warned that even a brief suspension of its services would have serious repercussions. The company's legal representatives said a month-long ban could result in the loss of a third of its daily active users in the United States, a decline that could irreparably damage the platform's growth and revenue streams.
TikTok outlines potential fallout
In their statement, TikTok and ByteDance painted a grim picture of the potential economic and operational consequences of a ban. The platform estimates that it would lose 29% of its global advertising revenue in 2025 due to the disruption of its US operations. That would particularly impact its ability to attract advertisers who rely on TikTok's broad reach among American audiences.
Additionally, TikTok has expressed concern about its workforce, saying that both current employees and potential talent may look elsewhere for opportunities amid the uncertainty surrounding the platform's future. The statement emphasized that such losses would extend beyond financial metrics, undermining TikTok's ability to remain competitive in a rapidly changing social media landscape.
“Before these irreversible damages take effect, the Supreme Court must be given the opportunity to review this critically important case,” the companies argued in their statement. TikTok said the Supreme Court's exclusive appellate jurisdiction makes it the appropriate authority to evaluate the legality of the legislation.
National security concerns drive the legislation
The law in question arises from long-standing concerns about TikTok's ties to ByteDance and the potential influence of the Chinese government. US officials have argued that TikTok's ownership structure poses a national security risk, arguing that the Chinese government could have access to user data collected by the app.
TikTok has consistently denied these allegations, claiming that it operates independently of Beijing and has implemented stringent measures to protect US user data. The company has also invested in initiatives such as Project Texas, a plan to store U.S. user data on nationwide servers operated by Oracle, in an effort to address security concerns.
Despite these efforts, lawmakers and regulators have remained skeptical, leading to bipartisan support for measures targeting TikTok. The Biden administration's push to force ByteDance's divestment mirrors the efforts of former President Donald Trump, who attempted to ban TikTok during his time in office. Trump's efforts were ultimately blocked by the courts, but the issue has resurfaced under the current administration.
The political and legal landscape
TikTok's legal filings acknowledge the changing political environment surrounding the platform. The company noted that a Supreme Court review could provide a “modest pause” that would allow the incoming administration to reevaluate its position on the issue. This delay, TikTok said, could prevent imminent harm to the platform and its users, potentially eliminating the need for further legal proceedings.
Interestingly, President-elect Donald Trump, who previously sought to ban TikTok, recently expressed opposition to such measures. This shift in Trump's position adds another layer of complexity to the debate, as it highlights evolving perspectives on regulating social media platforms and balancing national security with free market principles.
The Supreme Court has yet to indicate whether it will take up TikTok's case. However, legal experts believe the issue could attract the Court's attention due to its broader implications for technology regulation, national security and the limits of government intervention in private businesses.
Wider implications for social media regulation
TikTok's legal battle takes place amid growing scrutiny of social media platforms and their role in society. The case raises fundamental questions about the extent to which governments can regulate tech companies to protect national security without infringing on free speech or stifling innovation.
If the Supreme Court agrees to hear the case, its decision could set a precedent for how the U.S. government addresses similar concerns with other platforms in the future. This is especially relevant as lawmakers continue to explore ways to regulate Big Tech companies, including those based in the United States, on issues ranging from data privacy to content moderation.
For TikTok, the stakes are high. A ban in the United States would not only disrupt its operations in one of its largest markets but also signal to other countries that similar measures might be justified. The platform's success has made it a global leader in short-form video content, but its ties to China have also made it a focal point in ongoing tensions between the United States and Beijing.
What's the next step?
As the Supreme Court weighs whether to intervene, TikTok's future in the United States remains uncertain. The platform continues to maintain that its operations do not pose a threat to national security and that the proposed legislation unfairly targets the company based on unfounded fears.
For now, TikTok is urging the Supreme Court to step in and prevent what it sees as an unfair and harmful outcome. If the Court decides to take up the case it could have far-reaching consequences, not only for TikTok but also for the regulatory landscape that governs technology and social media in the United States.
Meanwhile, millions of American users and thousands of TikTok employees face an uncertain future, waiting to see whether the popular platform will continue to be a part of their daily lives. The outcome of this legal battle could shape the future of global technology regulation and the role of governments in overseeing the digital economy.
