Legislative History of the Ban on Tiktok
Tiktok is owned by a Chinese company called ByteDance, which has led to fear that the Chinese government could force the company to handover data about US users. In April 2024, President Biden signed a bill with support of 79 senators, requiring ByteDance to sell the app to a non-Chinese company or be banned in the US. Tiktok petitioned the law in the D.C. Circuit court arguing that it violated the First Amendment.
The parties pressured the court to make a ruling on the petition prior to January so the Supreme Court would have an opportunity to review the decision prior to the ban taking effect. On December 6, the court held that the government presented national-security justifications for banning Tiktok that were consistent with the First Amendment. The government offered evidence that the act was narrowly tailored to protect national security. Congress expressed that it was confident a deal would be reached for ByteDance to sell to a non-Chinese company. However, if ByteDance refuses then TikTok’s US ban will begin January 19, 2025, with a provision for a one-time 90 day delay granted by the president if a sale is in progress by the date of the ban. The Chinese government stated that it would block the sale of TikTok’s algorithm, which would force the new buyer to rebuild the algorithm for the app. Recreating the algorithm would be unfeasible for a new buyer, as software code has been developed over several years. As China is likely to resist sale to a US company, one of the best options may be selling to a US subsidiary of a multinational company, like Japanese companies Rakuten or Shopify.
As the law is also pending review by the Supreme Court, the court could choose to pause the law while they consider the arguments. However, the Supreme Court could also uphold the district court ruling and if no sale is in progress then the law will go into effect mid-January.
Arguments and Consequences Regarding the Ban
Proponents of the TikTok ban view TikTok as a major threat to national security. Not only could the Chinese government request data about US users, but the company also controls the algorithms regarding the content users see. Proponents of the ban fear that China is controlling US media consumption and influencing US users. Finally, some proponents argue that the ban will help with mental health problems related to social media consumption.
Opponents to the ban believe it is unconstitutional and suppresses the free speech and expression of millions of Americans. TikTok’s attorney expressed concern that this would create a precedent of blocking foreign ownership of major media companies in the US. Other opponents argue that the ban only benefits Meta, the owner of Facebook, Instagram, and Threads, by driving more users to its platforms. The law is harmful to small businesses and creators who rely on TikTok to make a living. The ban would force many businesses to change their marketing strategy, because many brands and companies have an authentic and low cost way to advertise. Additionally, many companies use TikTok and the TikTok shop as their main ecommerce platform and would have to completely change their sales and distribution model. Finally, members of the creator economy would be harmed as this is one of their biggest platforms to share content and generate income.
