A U.S. federal appeals court has upheld a law requiring ByteDance, the Chinese parent company of TikTok, to sell its U.S. operations by January 19, 2024, or face a nationwide ban.

The ruling marks a significant victory for the U.S. government, which cites national security concerns, and a substantial setback for ByteDance and TikTok.

PHOTO | COURTESY Tiktok

The law stems from bipartisan efforts to counter threats posed by foreign-owned apps with access to U.S. user data. The Justice Department argues that the Chinese government's influence over ByteDance poses risks, potentially enabling information manipulation and unauthorized access to the personal data of TikTok’s 170 million U.S. users.

TikTok and ByteDance strongly deny these allegations, calling the law unconstitutional and violating First Amendment rights. The American Civil Liberties Union (ACLU) has also criticized the ruling, describing it as a threat to free speech.

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Judges Sri Srinivasan, Neomi Rao, and Douglas Ginsburg affirmed the law, emphasizing its focus on addressing security risks while maintaining neutrality toward specific viewpoints. Without a Supreme Court intervention or a 90-day extension from President Joe Biden, TikTok faces a ban in January.

PHOTO | COURTESY Tiktok

The decision also strengthens the government's ability to ban other foreign-owned apps with similar security risks. Major competitors like Meta and Google saw their stock prices rise following the ruling.

TikTok users are now bracing for potential disruptions, while ByteDance faces intense pressure to divest. The situation could significantly impact the digital landscape, with TikTok's extensive user base forced to seek alternative platforms.