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TikTok Faces Major Setback with January Ban Looming

A U.S. federal appeals court has upheld a law mandating ByteDance, the Chinese owner of TikTok, to sell the platform by January 19, 2025, or face a nationwide ban. The decision intensifies scrutiny on TikTok, which has 170 million American users, amid growing bipartisan concerns over national security risks tied to Chinese technology.

The three-judge panel—Sri Srinivasan, Neomi Rao, and Douglas Ginsburg—rejected legal challenges from TikTok and its users, asserting that the legislation is constitutional. They emphasized that the law is a collaborative bipartisan effort addressing a documented security threat from China.

TikTok CEO Shou Zi Chew called the ruling “disappointing” and announced plans to appeal to the Supreme Court. Digital rights groups, including the American Civil Liberties Union (ACLU), have condemned the law, claiming it violates First Amendment rights. Michael Hughes, TikTok’s spokesperson, labeled the ban “censorship,” arguing that it stifles free expression for millions of Americans.

The ruling comes amid heightened U.S.-China tensions, with reciprocal trade restrictions impacting critical industries. Beijing criticized the court’s decision as “commercial robbery” and warned of further strain on diplomatic relations.

The U.S. Justice Department has defended the law, citing risks of data misuse by Beijing. Attorney General Merrick Garland called the ruling a “key step” in countering potential threats, while proponents of the ban highlighted concerns over propaganda and public opinion manipulation.

TikTok has attempted to alleviate these fears by localizing U.S. user data storage through Oracle and asserting its operational independence. However, skepticism persists due to ByteDance’s connections to Beijing.

Montana recently passed a statewide TikTok ban, though it remains unenforced due to legal challenges. With the appeals court decision, ByteDance has just over six weeks to divest TikTok’s U.S. operations. The company’s upcoming Supreme Court appeal is expected to shape the future of foreign-owned digital platforms in the U.S.

As the deadline looms, TikTok’s massive user base may need to explore alternatives, leaving the platform’s fate uncertain.

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