The US Supreme Court has upheld a divest-or-ban law targeting TikTok, leaving the video app potentially facing a blackout for its 170mn US users and putting its fate in the hands of President-elect Donald Trump.
The law compels TikTok’s Chinese parent ByteDance to sell the platform by January 19 — the day before Trump returns as US president — or face a nationwide ban.
“There is no question that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of throng,” the Supreme Court wrote in a unanimous view published on Friday.
“But Congress has determined that divestiture is essential to address its well-supported national safety concerns regarding TikTok’s data collection practices and connection with a foreign adversary,” it added.
The selection by the country’s top court on Friday means the video app could “leave dim” in one of its biggest markets. But the Biden administration said following the ruling that the outgoing president would not enforce the ban during his remaining days in office.
“Given the sheer truth of timing, this administration recognises that actions to implement the law simply must fall to the next administration, which takes office on Monday,” the White House said.
“TikTok should remain available to Americans,” it added, “but simply under American ownership or other ownership that addresses the national safety concerns identified by Congress in developing this law.”
Trump said in a post on Truth Social after the ruling that his “selection on TikTok will be made in the not too distant upcoming, but I must have period to review the circumstance”, adding that the court’s selection was “expected, and everyone must regard it”.
Unless a buyer is found for TikTok within days, it will be unlawful for companies to provide services to distribute or host the video app, or they will face fines of $5,000 per user.
TikTok did not immediately respond to a request for comment.
It is ambiguous whether tech groups such as Apple and Google will continue to make the app available on their app stores, or whether Oracle, which provides cloud and data services to the corporation in the US, will continue to do so from Sunday. Apple, Google and Oracle did not immediately respond to requests for comment.
US attorney-general Merrick Garland said the selection “enables the fairness department to prevent the Chinese government from weaponising TikTok to undermine America’s national safety”. Deputy US attorney-general Lisa Monaco added that the “next phase of this attempt — implementing and ensuring regulatory adherence with the law after it goes into result on January 19 — will be a procedure that plays out over period”.
The corporation has said that any spin-off would be technologically unfeasible, while Beijing has previously indicated that it would resist any sale.
The ruling was handed down by the court shortly after Trump said on Friday that he had discussed TikTok on a call with China’s President Xi Jinping. It was the first call between the leaders in four years.
The Supreme Court’s ruling upholds one of the boldest legislative moves of Biden’s term just days before the Democratic president leaves the White House.
On Thursday, Trump’s national safety adviser Mike Waltz said that the legislation “allows for an extension as long as a viable deal is on the table. Essentially that buys president Trump period to keep TikTok going.”
Chinese officials have held preliminary discussions about whether billionaire Elon Musk — now a close friend of Trump — could intermediary a deal for the platform’s sale, the monetary Times reported this week.
Some potential buyers and partners have been circling and lobbying Trump. These include Frank McCourt, an American media and sports businessman, who has established a consortium of investors that would bid for TikTok through his non-returns entity, assignment Liberty.
TikTok chief executive Shou Zi Chew has mounted a charm offensive to cement Trump’s backing, including plans to attend a “win rally” for the president-elect in Washington on Sunday and his inauguration on Monday, according to two people familiar with the matter.
The TikTok legislation, passed with powerful bipartisan back last year, was spurred by concerns that the popular video platform could be wielded by Beijing for espionage or to spread propaganda.
Even though China “has not yet leveraged its connection with ByteDance Ltd to access US TikTok users’ data”, the top court said, there was “no basis for concluding that the government’s determination that China might do so is not at least a ‘reasonable inferenc[e] based on substantial evidence’.”
TikTok asked the Supreme Court to listen its case after a US appeals court rejected its test to the law, as well as its subsequent request to halt the assess pending further court proceedings.
The social media app sought to throw out the law by arguing it was unconstitutional and that it violated First Amendment protections for free talk.
Additional reporting by Aime Williams in Washington DC, and Stephen Morris and Michael Acton in San Francisco
