TikTok Loses Ownership Battle in U.S. Supreme Court

The U.S. Supreme Court on Friday, January 17, 2025, unanimously upheld a federal law requiring ByteDance, TikTok’s Beijing-based parent company, to divest its ownership by January 19, 2025, due to national security concerns.

This decision mandates ByteDance to sell or shut down TikTok in the U.S., effectively resulting in the platform’s ban if compliance is not met.

The law, passed by Congress last year, cites national security concerns due to TikTok’s data collection practices and relationship with the Chinese government.

In an unsigned opinion, the court stated, “There is no doubt that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community. But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary.”

The court added, “we conclude that the challenged provisions do not violate petitioners’ First Amendment rights.”

TikTok has argued that the law endangers the First Amendment rights of its users and all Americans. Noel Francisco, the lawyer for TikTok and ByteDance, said the app is “one of America’s most popular speech platforms,” and that the law would require it to “go dark” unless ByteDance executes a qualified divestiture.

Francisco also stated, “The U.S. government’s real target with this law is speech – specifically a fear that Americans could be ‘persuaded by Chinese misinformation.’ But the First Amendment leaves that up to people of the United States, not the government.”

The law bars providing certain services to TikTok and other foreign adversary-controlled apps, including offering it through app stores such as Apple and Alphabet’s Google.

The Supreme Court’s decision comes after the US Court of Appeals for the District of Columbia Circuit upheld the law in December. TikTok plans to shut down its US operations on Sunday unless a last-minute reprieve is granted.

The case has sparked debate about free speech, national security, and the role of foreign-owned companies in the US. The incoming Trump administration has indicated that it may pursue a political resolution to the issue.