U.S. Federal Appeals Court Upholds TikTok Divestment Law

Date: WASHINGTON (Reuters)

A U.S. federal appeals court ruled in favor of requiring ByteDance, the Chinese-based parent company of TikTok, to divest its popular short video app in the United States by early next year or face a ban. President-elect Donald Trump has stated he will not allow TikTok, which is used by 170 million Americans, to be banned. Here is a detailed list of U.S. allegations against the company and its parent, ByteDance.

TikTok Management and the Chinese Government

FBI Director Chris Wray has stated that TikTok poses a national security risk, asserting that Chinese companies are mandated to comply with the Chinese government's requests for sharing information. Members of Congress have expressed concerns regarding a "golden share" held by the Chinese government in ByteDance. TikTok claims that only 1% of a ByteDance subsidiary is owned by an entity affiliated with the Chinese government, stating this share has no impact on TikTok's operations outside of China.

Potential Influence on Americans

Wray also raised concerns regarding TikTok's U.S. operations, suggesting the Chinese government could manipulate the app to influence users or access their devices. He pointed out risks like the possibility of controlling data collection and recommendation algorithms for influence operations. National Security Agency Director Paul Nakasone expressed worries over TikTok's data collection and algorithm management capabilities, believing it could lead to sweeping influence operations.

Data Sharing with the Chinese Government

Lawmakers have argued that the Chinese government could compel ByteDance to share user data under a 2017 National Intelligence Act. TikTok refutes this claim, asserting compliance with U.S. laws due to its incorporation in California and Delaware, while its CEO maintains that U.S. user data has never been shared with the Chinese government.

Mental Health Implications for Children

In March 2022, eight states, including California and Massachusetts, launched inquiries into TikTok's impact on youth mental health. The investigation focuses on user engagement levels, including the app’s effects on time spent and usage frequency. TikTok claims to have implemented measures to enhance safety and enjoyment for users under age 18.

Surveillance of Journalists

In December 2022, ByteDance admitted some employees improperly accessed the TikTok user data of two journalists in an attempt to investigate leaks of company information. Following this incident, four employees were terminated, including two based in China and two in the U.S. Company officials stated they are taking further actions to protect user data.