U.S. Court Upholds TikTok Divestiture Law

A US federal appeals court has upheld a government order requiring ByteDance, the Chinese parent company of TikTok, to divest its stake in the popular social media platform or face a ban on its US operations, Pak Yiu and Yifan Yu reported for Nikkei News.

Officials argue that TikTok could be exploited by Chinese intelligence agencies, including Beijing’s Ministry of Public Security (MPS), to monitor Americans, including high-ranking government officials. I Photo: Coolcaesar Wikimedia Commons

Judges Sri Srinivasan, Neomi Rao, and Douglas Ginsburg denied legal challenges from TikTok and its users against the law, which sets a compliance deadline of Jan. 19, 2025.

The ruling leaves TikTok’s future in the hands of President-elect Donald Trump, who is set to take office shortly before the deadline. The order, introduced during the Biden administration, cites national security concerns.

Officials argue that TikTok could be exploited by Chinese intelligence agencies, including Beijing’s Ministry of Public Security (MPS), to monitor Americans, including high-ranking government officials.

TikTok has contested these claims, asserting it is not a Chinese corporation, noting its operational hub is based in Singapore. Despite this, the Biden administration maintained the platform's connections to ByteDance posed an unacceptable risk.

The court's decision intensifies pressure on ByteDance to act swiftly, with potential repercussions for millions of US-based TikTok users and the platform's role in American digital culture.