TikTok edged closer to being banned in the United States after it lost an appeal on Friday against a law requiring the video-sharing app to divest from its Chinese parent company by January 19.
The potential ban could strain US-China relations just as president-elect Donald Trump prepares to take office on January 20.
TikTok said it would now appeal to the Supreme Court, which could choose to take up the case or let the DC circuit court’s decision stand.
“The Supreme Court has an established historical record of protecting Americans’ right to free speech, and we expect they will do just that on this important constitutional issue,” the company said.
TikTok will also be looking to Trump, who has emerged as an unlikely ally, arguing that a ban would mainly benefit Meta’s platforms owned by Mark Zuckerberg.
Trump’s stance reflects broader conservative criticism of Meta for allegedly suppressing right-wing content, including Trump’s ban from Facebook after the January 6, 2021 Capitol riot.
The US government alleges TikTok allows Beijing to collect data and spy on users. It also says TikTok is a conduit to spread propaganda, though China and app owner ByteDance strongly deny these claims.
The law, signed by President Joe Biden in April, would block TikTok from US app stores and web hosting services unless ByteDance sells the platform by January 19.
While recognizing that “170 million Americans use TikTok to create and view all sorts of free expression,” the three-judge panel unanimously upheld the law’s premise that divesting it from China’s control “is essential to protect our national security.”
They found that the law did not hinder free speech as it was “devoid of an institutional aim to suppress particular messages or ideas.”
The judges also disagreed with the idea that less drastic alternatives than a sale by ByteDance would solve the security issues.
“This conclusion is supported by ample evidence that the Act is the least restrictive means of advancing the Government’s compelling national security interests,” the judges said in their opinion.
Trump’s position marks a reversal from Trump’s first term, when he tried to ban TikTok over similar security concerns.
That effort got bogged down in the courts when a federal judge questioned how the move would affect free speech and blocked the initiative.
Trump’s newly nominated tech policy czar David Sacks also opposes the ban as government overreach.
– ‘Trump lifeline’ –
Trump’s shift coincides with his connection to Jeff Yass, a major Republican donor with ByteDance investments.
“Donald Trump could be a lifeline for TikTok once he takes office, but halting the enforcement of the ban is easier said than done,” said Emarketer lead Analyst Jasmine Enberg.
“And even if he does manage to save TikTok, he’s already flip-flopped on his stance toward the app and there’s no guarantee he won’t go after it later.”
The President-elect launched his own TikTok account in June, gaining 14.6 million followers, but hasn’t posted since Election Day.
Despite the uncertainty, TikTok’s US presence continues growing.
The platform reported $100 million in Black Friday sales for its new shopping venture, and Emarketer projects US ad revenue will reach $15.5 billion next year, accounting for 4.5 percent of total digital ad spending in the country.
But Enberg warned a ban would significantly disrupt the social media landscape, benefiting Meta, YouTube, and Snap while harming content creators and small businesses dependent on TikTok.