The Situation at a Glance
On Friday, December 6th, a district federal appeals court ruled that the TikTok ban law is constitutional, meaning the app can be banned in the U.S. over national security concerns if ByteDance does not sell it.
The law requiring TikTok’s China-based owner to sell its stake in the company, or face a ban in the U.S. was passed by the House, Senate, and President earlier in 2024 due to continued concerns about the app’s data security in connection to the Chinese government. Once signed into law by President Biden, ByteDance immediately challenged it in a federal appeals court, arguing that the ban was “an unconstitutional infringement on free speech.” According to Wall Street Journal, the law passed through the appeals court with bipartisan support following intelligence briefings on China’s ability to use TikTok to surveil Americans and spread Chinese propaganda.
Now, ByteDance will likely seek an appeal to the Supreme Court to keep operating in the U.S. under the ownership of ByteDance. Additionally, President-elect Donald Trump, upon taking office, could grant a 90-day extension on the divestiture order, based on progress toward compliance. Trump previously stated he would "save TikTok," though opinions within his Cabinet on this law remain divided. If the law is validated by the Supreme Court, ByteDance may ultimately sell TikTok to ensure its continued operation in the U.S. If this sale does not happen within the allotted 9-month period the law was signed (by January 19, 2025), it would be unlawful for app stores to distribute or update TikTok in the United States.
What This Means for Brands
Uncertainty remains over the enforcement of the TikTok ban, particularly with President-elect Donald Trump taking office in January 2025 and the appeal to the Supreme Court. While Trump has suggested he might oppose the ban, the legal framework supporting it is progressing, with a January 19, 2025 deadline for ByteDance to sell TikTok or face restrictions. This deadline has potential to shift, though, as ByteDance is seeking an injunction to stop the TikTok ban from going into effect until the US Supreme Court has an opportunity to review it, and Trump could grant a 90 day extension if no buyer is secured by the deadline (extending to April 19th, 2025).
Many brands have already developed contingency plans in case TikTok becomes unavailable in the U.S. across platforms like Meta, Snapchat, YouTube, and others. While the situation remains fluid, it’s a good time to revisit discussions about how your digital strategies might adapt should the ban proceed. We anticipate gaining clearer insight into the likelihood of a sale or ban coming to fruition in the coming weeks, particularly as the new administration assumes office.
TikTok Official Response
When Code3 reached out to TikTok for a response on the matter, a TikTok representative shared the following:
“We strongly disagree with the court's decision, and will be seeking an injunction to stop the TikTok ban from going into effect until the US Supreme Court has an opportunity to review it. This unconstitutional law is a TikTok ban that would devastate 7 million businesses and silence 170 million Americans.
It's important to reiterate that the risks raised by US politicians are theoretical and unsubstantiated, but the work we have done to address these concerns is very real:
- We have 2000+ employees at USDS (US Data Security) working tirelessly to keep US user data safe.
- We signed with Oracle and other third parties for unprecedented oversight and transparency.
- We established industry-leading standards for data access and have invested billions of dollars into USDS to set an industry-leading standard for security.
- Through Project Texas, TikTok USDS is already well ahead of any peer companies in terms of how we secure users’ data and by providing unparalleled transparency by making our source code available to a third-party for review.
We will continue investing and innovating to ensure TikTok remains a space where Americans can safely come to share their experiences, find joy, and be inspired.