U.S. Appeals Court Upholds TikTok Divestment Law

(Reuters) – A U.S. federal appeals court upheld a law that may compel China-based ByteDance to sell TikTok in the U.S. Here are key excerpts from the ruling that dismissed claims of violation of First Amendment rights.

Key Rulings from Judge Douglas Ginsburg’s Opinion

• The multi-year investigations into TikTok's national security risks weigh in favor of the Act.
• Government concerns justify applying the law to all ByteDance entities.
• The law embodies bipartisan congressional action, targeting control by foreign adversaries as part of national security efforts against the PRC.
• The First Amendment safeguards U.S. free speech, but here it serves to protect that freedom from foreign threats and limit data collection.
• TikTok users must seek alternative communication methods due to the PRC's threats, not due to U.S. Government actions, which aimed for solutions over years.
• TikTok must complete a qualified divestiture by January 19, 2025, or face restrictions in the U.S.

Chief Judge Sri Srinivasan’s Concurring Opinion

• Congress aimed to safeguard national security against foreign influence, regardless of the impact on platform content.
• The risks were deemed necessary due to serious national security threats, reflecting considered congressional decisions.
• The divestment requirement aligns with Congress's national security goals without unnecessary restrictions on speech.