U.S. Appeals Court Backs Sale or Ban of TikTok

The U.S. Court of Appeals for the District of Columbia has upheld the law requiring Chinese company ByteDance to sell TikTok’s U.S. operations or face a ban. If the sale doesn’t go through, the service will be blocked in the United States.

The decision affirmed the constitutionality of the law and rejected ByteDance’s arguments that it infringes on First Amendment rights. According to Financial Times, ByteDance plans to appeal the ruling to the Supreme Court.

Under the law signed by former President Joe Biden in April 2024, ByteDance has nine months to complete the sale. The President can extend the deadline by an additional three months if progress is shown. If the sale does not occur, TikTok may be banned in the U.S. due to national security concerns.

ByteDance has previously argued that selling TikTok is commercially, technologically, and legally impractical. The core issue lies in TikTok’s recommendation algorithms, which are key to its success. Additionally, the Chinese government strongly opposes the transfer of these technologies.