TikTok Faces $50 Billion U.S. Ban in 2025 as Supreme Court Upholds Sale Mandate

TikTok, the popular short-video app with 170 million users in the United States, is poised to go dark starting January 19, 2024, after the U.S. Supreme Court upheld a law demanding its Chinese parent company, ByteDance, divest its U.S. operations or face a full ban.

Enacted by Congress and signed into law by President Joe Biden in April 2023, the legislation aims to sever TikTok’s ties to China amid national security concerns. The law mandates ByteDance to sell TikTok’s U.S. business by the January 19 deadline or risk being barred from operating in the country.

TikTok has challenged the law, arguing it infringes upon the First Amendment rights of its users and the company itself. In a statement released Friday, the company expressed frustration with the lack of clear guidance from the Biden administration and the Department of Justice, warning that without assurances, TikTok will be forced to shut down its U.S. service.

The ban impacts major service providers like Google Play Store and Apple’s App Store, which will be prohibited from distributing or updating TikTok in the U.S. after the deadline.

The Supreme Court emphasized that ByteDance’s ownership raises significant national security risks, stating, “As of January 19, the Protecting Americans from Foreign Adversary Controlled Applications Act prohibits U.S. companies from supporting TikTok unless its operations are fully separated from Chinese control.”

Biden Administration Defers Enforcement to Incoming Trump Team

On the same day, the Biden administration announced it would not enforce the ban immediately, leaving the responsibility to the incoming Trump administration starting January 20, 2024. White House Press Secretary Karine Jean-Pierre noted the timing necessitates the transition of enforcement duties.

The Department of Justice welcomed the ruling, with Deputy Attorney General Lisa Monaco highlighting the law’s goal to eliminate TikTok’s ties to the Beijing government in a constitutional manner. She indicated that implementing compliance will be a gradual process.

Former President Donald Trump, on his Truth Social platform, stated he respects the Supreme Court’s decision and will review the situation before making a final call on TikTok’s future in the U.S. He also revealed discussions with Chinese President Xi Jinping covering TikTok, trade, and other critical topics.

TikTok CEO Shou Zi Chew expressed gratitude towards Trump for his willingness to collaborate on keeping TikTok accessible in the U.S.

Meanwhile, Chinese officials criticized the ruling, with embassy spokesperson Liu Pengyu condemning the ban as unjust and emphasizing TikTok’s data storage on U.S.-based Oracle servers as a security measure.

Reports suggest that if forced to sell, TikTok’s U.S. operations could be acquired by Elon Musk. Wedbush analysts estimate the deal’s value between $40 billion and $50 billion, reflecting the platform’s significant market presence.

Note: This article was updated on January 18, 2024, to include the latest developments and statements.

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