The U.S. Supreme Court has unanimously upheld a law requiring ByteDance to divest its ownership of TikTok by January 19 due to national security concerns, leaving the app's future uncertain as President-elect Donald Trump contemplates his next move. Potential penalties for non-compliance could impact third-party providers.
The U.S. Supreme Court has unanimously upheld a law requiring China-based ByteDance to divest its ownership of TikTok by January 19 or face an effective ban of the app in the United States. The decision reinforces national security concerns over TikTok’s data collection practices but leaves the app’s future in question as President-elect Donald Trump weighs his next move.
Supreme Court’s Ruling
In its opinion, the court emphasized the national security risks posed by TikTok’s data collection practices and potential susceptibility to foreign control. Despite recognizing the app’s value as a platform for expression and community for over 170 million Americans, the court sided with Congress’s determination that divestiture was necessary.
Justices Sonia Sotomayor and Neil Gorsuch wrote concurring opinions, underscoring bipartisan agreement on the issue.
What Happens Next?
With the divestiture deadline looming on January 19, Trump, who will be inaugurated the following day, holds the power to influence TikTok’s fate. Although he initially supported a ban during his first term, Trump has shown signs of reconsideration. In December, he asked the Supreme Court to delay the law’s implementation, signaling his interest in pursuing a political resolution.
In a post on his Truth Social platform, Trump indicated that he would make a decision soon, asking Americans to “stay tuned.” His recent interactions with ByteDance investor Jeff Yass, a billionaire and Republican donor, suggest he may seek a compromise to allow TikTok to remain operational.
Impact on Users and Companies
If ByteDance does not divest, third-party service providers like Apple and Google will face penalties for supporting TikTok beyond the deadline. Without updates, the app could become non-functional, forcing many users to seek alternatives. Already, competing platforms like YouTube and Instagram are preparing for a surge in users, while TikTok creators encourage fans to follow them on other platforms.
The Chinese government is reportedly exploring contingency plans, including a potential acquisition of TikTok’s U.S. operations by Elon Musk’s X (formerly Twitter), Bloomberg News reported.
Government and Industry Reactions
Outgoing White House press secretary Karine Jean-Pierre reiterated President Biden’s support for the law, emphasizing that TikTok could remain available under new ownership that addresses national security concerns. Attorney General Merrick Garland praised the decision as a necessary step to protect against foreign influence.
Conversely, critics argue that the ruling harms free expression. Kate Ruane of the Center for Democracy and Technology stated that the decision undermines the rights of millions of users.
TikTok CEO’s Plea
TikTok CEO Shou Zi Chew expressed optimism in a video addressed to users, thanking Trump for his willingness to consider alternatives and emphasizing the platform’s importance to over 7 million American businesses. Chew maintained that TikTok use is a First Amendment right and vowed to explore all options to keep the app accessible.
Market Implications
If ByteDance opts to sell TikTok’s U.S. operations, analysts estimate a price tag between $40 billion and $50 billion. Meanwhile, Chinese competitor apps like RedNote are already gaining traction, with RedNote topping Apple’s app store earlier this week.
What’s at Stake?
The Supreme Court’s decision reflects growing concerns about foreign control over data in the digital age. As Trump prepares to take office, his handling of the TikTok situation could set the tone for his administration’s approach to tech and foreign policy. With potential buyers, geopolitical considerations, and millions of users in the balance, TikTok’s future in the U.S. remains uncertain.