Supreme Court Rules Against TikTok Ban

By Sheila Dang and Jaspreet Singh

The U.S. Supreme Court ruled against TikTok, impacting millions of users amid a potential ban stemming from national security concerns.

Background

On Jan. 19, TikTok’s parent, ByteDance, faces a requirement to sell the app or face a U.S. shutdown due to new legislation. While the ban could initiate soon, President-elect Donald Trump mentioned seeking a political resolution.

App Impact

As of Sunday, new users can’t download TikTok, and existing users won’t receive updates. Oracle, hosting TikTok’s U.S. data, may be affected. TikTok assures continued payroll for its 7,000 American employees.

User Effects

About 170 million current users in the U.S. might still access the app but will face functionality issues without updates. Some may seek to use VPNs to bypass restrictions, and other platforms could gain popularity as alternatives.

Advertiser Concerns

Advertisers are rapidly creating contingency plans due to the looming ban, which threatens over $11 billion in annual U.S. ad investments. There’s speculation about which platforms might benefit from TikTok’s decline.

U.S.-China Trade Relations

The ban could exacerbate existing trade tensions between the U.S. and China. Analysts suggest Trump might use potential TikTok negotiations to leverage advantages in future talks with China.

Possible Buyers

While TikTok insists it cannot be sold by ByteDance, billionaire Frank McCourt has estimated the app’s worth at around $20 billion, and there are rumors about a sale to Elon Musk. However, TikTok refutes these claims as unfounded.