U.S. Supreme Court Rules TikTok Ban Stands Without Sale of Chinese Parent Company

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On January 17, 2025, the U.S. Supreme Court unanimously upheld a federal law banning the popular app TikTok, effective January 19, unless it is sold by its China-based parent company, ByteDance. The court's decision emphasizes national security risks associated with TikTok's data collection practices and its ties to China, outweighing concerns about freedom of speech for its 170 million American users.

The ruling comes amid significant political activity, particularly from President-elect Donald Trump, who has expressed willingness to negotiate a solution for the app's continued operation. While the current administration of President Joe Biden indicated it would not enforce the ban on TikTok, effective action remains uncertain given the imminent deadline.

Experts predict that the app will not vanish from users' phones after the ban begins; however, new users will be unable to download it, and updates will cease, leading to potential functionality issues over time. The court highlighted that Congress determined divestiture from ByteDance is necessary to mitigate national security threats.

TikTok, which has disputed the law's implications, stated that no evidence supports claims of manipulation by the Chinese government, despite broad concerns about data privacy. The ban will prevent app stores from offering TikTok and restrict internet hosting services unless an approved sale occurs. Reports indicate that several investors, including Trump’s former Treasury Secretary Steven Mnuchin, are monitoring the situation as potential buyers of TikTok's U.S. assets.

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