U.S. Supreme Court Skepticism Towards TikTok Challenge

By Sheila Dang

(Reuters) – The U.S. Supreme Court justices on Friday expressed skepticism about a challenge from TikTok and its Chinese parent company ByteDance against a law signed by President Joe Biden, which would force the sale or ban of the popular short-video app by Jan. 19 in the United States.

Some justices acknowledged Congress’ national security concerns over TikTok, due to its ownership by a foreign adversary.

What Happens to the App?

New users will be unable to download TikTok from app stores, while existing users won’t be able to update the app, as the law prohibits facilitating the download or maintenance of TikTok. U.S. lawmakers informed Apple and Google to prepare for TikTok’s removal from their stores on Jan. 19.

Oracle, which hosts TikTok’s U.S. user data, could face disruptions. Apple and Google declined to comment, while Oracle did not respond to requests for information.

How Will Users Be Affected?

TikTok’s 170 million U.S. users can still use the app if downloaded, but it will become unusable over time without updates. Some users have begun sharing videos on using VPNs to circumvent a potential ban.

Content creators are bracing for the worst; some, like Nadya Okamoto with 4.1 million followers, fear a TikTok ban would harm their businesses and increase marketing costs.

What Happens to TikTok’s Employees?

TikTok’s 7,000 U.S. employees are uncertain about their future after a U.S. appeals court upheld the ban. Despite this, TikTok continues to make new job offers, causing confusion among job seekers.

What Will Advertisers Do?

In 2024, TikTok’s U.S. ad revenue is projected to reach $12.3 billion. Despite fears about updates, some advertisers plan to continue utilizing the app, leveraging its unique e-commerce features that lack direct competition.

Are There Potential Buyers?

While TikTok has said it cannot be sold from ByteDance, billionaire Frank McCourt claims to have gathered $20 billion in commitments to bid for TikTok. He believes the Supreme Court will uphold the divestment law, making TikTok more open to sale discussions. McCourt’s plan involves leveraging open-source technology and monetizing through e-commerce and AI data licensing.