Court Upholds TikTok Divestiture Law

On December 6, 2024, the U.S. Court of Appeals for the D.C. Circuit upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, mandating that TikTok's parent company, ByteDance, divest its ownership or face a ban by January 19, 2025. The court ruled that the law does not violate First Amendment rights, asserting that it aims to protect free speech from foreign adversaries, specifically highlighting concerns over data security regarding the Chinese government. TikTok plans to appeal to the Supreme Court, arguing that the ban would silence over 170 million American users and is based on flawed information. The bipartisan law, which received significant congressional support, is part of broader national security measures aimed at preventing foreign influence and data breaches. The court emphasized the necessity of divestiture as an effective means to mitigate national security risks posed by foreign ownership of applications like TikTok. As the effective date approaches, the case’s future remains uncertain depending on the Supreme Court's willingness to hear the appeal.