Judges overseeing the prominent case of the TikTok ban in the United States have denied the Chinese-owned social media platform's appeal to overturn a law requiring it to divest from parent company ByteDance by January 19, 2025. TikTok's attempt to delay the ban has been rejected, marking a significant setback for the platform as it faces growing scrutiny over its connections to China.
Under the Foreign Adversary law, TikTok has been labeled a "national security threat" due to alleged affiliations with the Chinese government. The escalating tensions between Washington and Beijing have further fueled these concerns.
TikTok US Ban 2025: U.S. Set to Lose $1B in 1 Month
The impending ban could carry severe economic consequences. Speaking to ArsTechnica, a TikTok spokesperson warned that small businesses across the U.S. stand to lose over $1 billion in revenue within just a month of the ban's enactment. Additionally, content creators could collectively lose as much as $300 million in earnings.
The platform, which boasts 170 million users in the U.S., would also see a significant loss in advertising revenue, potentially amounting to 29 percent of its current intake. The ripple effect of the ban is expected to disrupt a wide array of industries reliant on TikTok for marketing and engagement.
Court Ruling and Trump's Stance
The U.S. Court of Appeals for the District of Columbia Circuit recently upheld the Foreign Adversary Act, rejecting TikTok's appeal to prevent the law from taking effect. The ruling underscores the government's firm stance on addressing national security concerns tied to the platform.
Former President Donald Trump, who is running for reelection, has taken a different tone. During recent campaign stops, Trump stated that he would not ban TikTok and suggested he would assist the platform if he returned to the White House. However, his potential involvement would come too late to affect the current January 19 deadline.
TikTok's Legal Arguments and Allegations
TikTok's legal team initially planned to leverage the First Amendment to argue that the Foreign Adversary Act infringes upon Americans' right to free speech. However, the company failed to present compelling evidence in court, weakening its case.
The Foreign Adversary law classifies TikTok as a national security risk, citing its ties to ByteDance and alleged data-sharing practices with the Chinese government. Over recent months, TikTok has faced heightened scrutiny regarding its data collection methods, prompting widespread concern among U.S. lawmakers and officials.
