Appeals Court Sides with Government, Giving ByteDance 45 Days to Appeal
A federal appeals court in Washington D.C. ordered ByteDance to sell TikTok or face a nationwide ban, rejecting the company’s First Amendment challenge on December 6, 2024. The ruling gives TikTok’s Chinese parent company until January 19, 2025, to complete a sale or lose access to 170 million U.S. users. Judge Douglas Ginsburg, writing for the three-judge panel, ruled that protecting Americans from foreign data collection outweighed free speech concerns. TikTok spokesperson Michael Hughes announced plans to petition the Supreme Court, calling the law “an outright censorship of the American people.”
5 Key Points
- A unanimous federal court ruling requires ByteDance to sell TikTok by January 19 or exit the U.S. market.
- China blocked the sale of TikTok’s core algorithm, creating an international standoff.
- President-elect Trump plans to halt the ban after taking office, sources told The Washington Post.
- Meta’s stock hit an all-time high after the ruling, rising 2.5% on potential reduced competition.
- The law allows Biden to extend the sale deadline by 90 days if ByteDance shows progress.
Court Rules National Security Trumps Free Speech
The D.C. Circuit Court ruled that Congress and the Justice Department presented compelling evidence of national security risks from TikTok’s Chinese ownership. Judge Ginsburg rejected TikTok’s argument that the ban would violate users’ First Amendment rights, writing, “The First Amendment exists to protect free speech in the United States. Here, the Government acted solely to protect that freedom from a foreign adversary nation.” Attorney General Merrick B. Garland praised the decision as “an important step in blocking the Chinese government from weaponizing TikTok to collect sensitive information about millions of Americans.” The 65-page ruling united judges appointed by Presidents Reagan, Obama, and Trump.
The Ban: Congress Sets Nine-Month Deadline
The Protecting Americans from Foreign Adversary Controlled Applications Act passed in April 2024, marked Congress’s first major action against a social media platform since the Cold War. The law requires ByteDance to sell TikTok by January 19, 2025, or face removal from U.S. app stores. President Biden can extend the deadline once for 90 days if ByteDance demonstrates concrete progress toward a sale. Rep. Raja Krishnamoorthi (D-Illinois), who co-introduced the bill, said the ruling affirms that TikTok “is a national security threat that cannot be mitigated through any other means than divestiture.”
Trump’s Potential Intervention Creates New Uncertainties
President-elect Donald Trump plans to halt the TikTok ban after taking office, according to sources who spoke to The Washington Post in November. This stance marks a shift from his first term when Trump supported similar measures against the platform. Rep. John Moolenaar (R-Michigan), chairman of the House Select Committee on the Chinese Communist Party, backed Trump’s new position: “I am optimistic that President Trump will facilitate an American takeover of TikTok to allow its continued use in the United States.” The president-elect’s team did not respond to requests for comment on the ruling.
Global Deadlock: China Blocks Algorithm Sale
ByteDance faces a direct conflict between U.S. and Chinese demands. The Chinese government declared it will block any sale of TikTok’s recommendation algorithm, which powers the platform’s content delivery system. This creates a practical impossibility: ByteDance must satisfy U.S. divestiture requirements while complying with Chinese technological export restrictions. The nine-month timeline for such an international transaction requires regulatory approvals from multiple countries, a process that finance specialists call “almost impossibly short.”
Meta Gains as TikTok Future Dims
Meta’s stock price hit an all-time high after the court’s decision, rising 2.5% by mid-afternoon trading. The market response highlighted Wall Street’s calculation that Instagram and Facebook stand to benefit from TikTok’s potential removal. Meta’s 2022 campaign that branded TikTok as “the real threat” adds context to the competitive stakes. Attorney General Merrick B. Garland praised the ruling as a victory for national security. At the same time, Jameel Jaffer, executive director of the Knight First Amendment Institute, warned that suppressing speech based on foreign disinformation concerns sets a dangerous precedent.
FAQ
Q: Can I file a lawsuit if I or a loved one was harmed by social media use?
A: If you or a loved one experienced harm related to social media platforms, such as exploitation or addiction, legal options may be available. Contact our legal experts to learn about your rights and start a free, confidential case review.
Q: What happens on January 19, 2025?
A: TikTok must be sold to non-Chinese owners or face removal from U.S. app stores by this date. The Biden administration can grant one 90-day extension if ByteDance shows concrete progress toward a sale.
Q: How could President-elect Trump stop the ban?
A: Trump has three options: asking Congress to repeal the law, directing his attorney general not to enforce it, or declaring ByteDance has satisfied the requirements through a “qualified divestiture.”
Q: Why did Congress target TikTok?
A: U.S. officials claim TikTok collects extensive user data—including location and contact information—which Chinese law could compel ByteDance to share with Beijing. The company’s data firewall claims failed to convince Congress or the courts.
Q: What makes selling TikTok difficult?
A: China blocked the sale of TikTok’s recommendation algorithm, creating a deadlock between U.S. and Chinese regulations. The nine-month sale timeline requires complex regulatory approvals across multiple countries.
Q: Can TikTok still appeal?
A: Yes. Before the January deadline, TikTok can request a full D.C. Circuit Court review or appeal directly to the Supreme Court. Legal expert Alan Rozenshtein called the ruling “about as bad for TikTok as it could’ve gone.”
Citations
Eva Dou, Drew Harwell and Cristiano Lima-Strong (December 6, 2024). Appeals court upholds nationwide TikTok ban-or-sale law. The Washington Post. https://www.washingtonpost.com/technology/2024/12/06/tiktok-ban-court-ruling-justice-department-bytedance/
