Tick tock for TikTok? China’s social media titan faces a race against time and Trump By Investing.com
Investing.com — TikTok’s fight to overturn a looming U.S. ban is facing a tight deadline, with an oral hearing scheduled for Jan. 10, just nine days before a Jan. 19 deadline for ByteDance to divest itself of its U.S. operations. The timeline makes it more likely that the law will be followed, which could lead to the app being banned or sold.
The stakes are high. Companies that don’t comply face fines of $5,000 per user per data breach after a 90-day grace period, which could prompt app stores to take preemptive action.
President-elect Donald Trump, who will be inaugurated the day after the ban takes effect, has filed a brief urging the Supreme Court to delay the statute. Trump is seeking time for a negotiated settlement, opposes the ban, but refrains from addressing the broader dispute over the First Amendment.
The Biden administration supports the ban, citing national security risks associated with Chinese ownership of TikTok. However, a Trump-led White House could change policy, complicating the outcome.
If the court prioritizes national security over free speech concerns, TikTok could face removal from US app stores. Competitors such as Meta (NASDAQ: ) and Alphabet (NASDAQ: ) may benefit from such an outcome.
TikTok’s fate now hinges on the Supreme Court and the shifting political landscape, and arguments from Jan. 10 offer critical insights into the direction of the case.
