TikTok sale law upheld by court

Federal Appeals Court Upholds TikTok Sale Law Amid National Security Concerns

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A federal appeals court has upheld a law requiring TikTok to sell its U.S. assets or face a ban by January 19, 2025. This decision escalates a long-standing battle between TikTok, owned by the Chinese company ByteDance, and the U.S. government over national security concerns. The ruling marks a significant step toward potentially banning the app in the United States.

The Law and Its National Security Implications

The law mandates that ByteDance divest TikTok to a non-Chinese company or risk a complete U.S. ban. The court’s decision cited concerns that the Chinese government could exploit TikTok to access the personal data of millions of Americans.

Judge Douglas Ginsburg, writing for the court, acknowledged the inconvenience millions of TikTok users might face but emphasized that the national security threats posed by China justified the law. “This burden arises from China’s actions, not from U.S. policy,” Ginsburg stated.

TikTok has strongly opposed the ruling. Michael Hughes, a spokesperson for the company, argued that the required divestiture is “technologically, commercially, and legally unfeasible.” TikTok plans to appeal the decision to the U.S. Supreme Court, claiming the law violates the free speech rights of its 170 million American users.

The conflict over TikTok’s ownership and operations has spanned years, involving lawsuits, congressional hearings, and regulatory inquiries. Momentum increased in April 2024 when President Joe Biden signed a bill requiring ByteDance to sell TikTok or face a nationwide ban.

Montana became the first state to attempt a TikTok ban in 2023, but a judge blocked the law before it could take effect. TikTok has since challenged the constitutionality of such bans. Although the appeals court upheld the divestiture law, it acknowledged the complex interplay between free speech rights and national security concerns.

U.S. officials have voiced fears that TikTok could be used to manipulate what users see on the app or as a tool for espionage. Democratic Congressman Josh Gottheimer described these risks as an “information invasion” targeting U.S. citizens, especially children. However, the government has yet to present direct evidence of ByteDance or the Chinese government misusing TikTok for these purposes.

Civil Liberties Concerns and Corporate Assurances

Civil rights groups, including the American Civil Liberties Union (ACLU), have criticized the TikTok ban as a form of censorship that violates free speech rights. These organizations advocate for stricter privacy laws rather than targeting individual apps.

TikTok maintains that it operates independently from ByteDance and safeguards U.S. user data. The company points to its partnership with Oracle, which handles American user data, as evidence of its commitment to privacy. TikTok also argues that its global headquarters in Los Angeles and Singapore further distance it from Chinese influence.

During oral arguments, Judge Sri Srinivasan suggested that the divestiture could resolve the national security concerns associated with TikTok’s foreign ownership. He highlighted that transferring ownership to a non-Chinese entity might eliminate the risk of foreign government access to user data.

What Lies Ahead

The legal battle over TikTok is far from over, with the case likely headed to the U.S. Supreme Court. The outcome will have significant implications for TikTok’s future in the U.S. and could set a precedent for regulating foreign-owned technology companies.

As the debate unfolds, TikTok’s fate remains uncertain. The court’s decision to uphold the law underscores the growing tension between safeguarding national security and preserving individual freedoms in the digital age. Whether TikTok can continue operating in the U.S. will depend on how this delicate balance is ultimately resolved.