Topline
The Supreme Court announced Thursday it might issue opinions Friday morning, potentially meaning a ruling on the law forcing TikTok’s sale or ban in the U.S. could soon be issued as the app faces a looming ban on Jan. 19.
A TikTok logo is displayed on an iPhone.
Timeline
The Supreme Court’s website says it “may announce opinions on the homepage” Friday starting at 10 a.m. EST, meaning a ruling on the TikTok case could be delivered two days before its ban is slated to take effect.
The Biden administration does not plan to intervene against the law forcing TikTok’s ban or sale by Jan. 19, according to multiple outlets, one day after NBC News reported Biden’s team was “exploring options” on how it can avoid the app being shut down—though ABC reports Biden also won’t take action to enforce the ban against app stores or internet providers.
Schumer said it is “clear that more time is needed to find an American buyer,” noting Senate Democrats’ failed attempt to pass a bill extending the Jan. 19 deadline and urging lawmakers for a solution that keeps TikTok in the U.S. while also protecting Americans’ data privacy (the law banning TikTok unless China-based parent company ByteDance sells the app passed on a bipartisan basis last year).
Trump—who takes office one day after TikTok is banned—is considering an executive order to suspend the ban’s enforcement for two to three months, The Washington Post reported.
TikTok CEO Shou Zi Chew is expected to attend Trump’s inauguration, according to The New York Times.
ByteDance would likely expect $40 billion to $50 billion for the platform’s U.S. operations, Wedbush analyst Dan Ives estimated (other analysts have offered a range of figures for how much TikTok is worth, depending on whether the deal includes TikTok’s powerful content algorithm).
Chinese government officials have considered selling TikTok’s U.S. operations to Trump-allied billionaire Elon Musk if the Supreme Court does not stop the ban from going through on Jan. 19, reported Bloomberg, citing unnamed people familiar with the matter—though the people noted the deliberations are preliminary and officials prefer to keep TikTok under the ownership of China-based developer ByteDance (ByteDance told Forbes it “can’t be expected to comment on pure fiction” when asked about the Bloomberg report).
The Supreme Court heard oral arguments over the law requiring TikTok to be sold to a U.S. company or face a ban, with justices appearing “inclined” to uphold the law after appearing satisfied with its focus on the controversial Chinese ownership of the app’s parent company, according to The New York Times.
Billionaire Frank McCourt’s Project Liberty announced a proposal to buy TikTok’s U.S. operations—but not its algorithm—by migrating American users to a locally run digital infrastructure, a deal McCourt has suggested could be worth $20 billion, with interest from other investors like “Shark Tank” star Kevin O’Leary (it’s unclear whether ByteDance is considering the offer).
The Justice Department asked the Supreme Court to uphold the law forcing the ban or sale of TikTok despite Trump’s support of the app, arguing TikTok has not shown enough to reason to justify a pause of the law’s date of taking effect and that Trump has not presented a viable argument for a pause.
Trump opposed the potential ban of TikTok in a court filing, arguing if the Supreme Court intervenes, he could secure a “political resolution” after his Jan. 20 inauguration that would keep the app in the U.S.
The Supreme Court announced it will review TikTok’s challenge against the federal law that could potentially ban the app, scheduling oral arguments for Jan. 10—just days before the law is set to become effective.
TikTok requested an injunction from the Supreme Court that would block the ban against it until the conservative majority court rules on TikTok’s legality or dismisses the case, saying the pause would “create breathing room for this Court to conduct an orderly review … before this vital channel for Americans to communicate with their fellow citizens and the world is closed.”
Chew met with Trump at his Mar-a-Lago estate, according to CNN, and argued an injunction from the Supreme Court, which was ultimately not granted, would give Trump’s TikTok-friendly administration time to comment on the matter.
The U.S. Court of Appeals for the D.C. Circuit denied TikTok’s petition to review the law against TikTok after the court’s three-judge panel said national security concerns outweigh TikTok’s First Amendment rights, later declining TikTok’s request to halt its ruling upholding the law.
Eight TikTok users sued the federal government, accusing them of First Amendment violations and calling the ban “unconstitutionally overbroad.”
TikTok filed suit against the federal government, challenging the constitutionality of the ban and arguing the app and its American users were having their First Amendment rights violated.
President Joe Biden signed the bill requiring TikTok to be sold or banned, provoking a response from the platform, which claimed in a statement it “invested billions of dollars to keep U.S. data safe and our platform free from outside influence and manipulation.”
The Senate voted 80-19 to pass the bill, which Sen. Maria Cantwell, D-Wash., said was done to “prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and our U.S. government personnel.”
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When Could The Tiktok Ban Take Effect?
The ban against TikTok could become effective as early as Sunday, Jan. 19, unless ByteDance commits to selling TikTok to another company or the Supreme Court overturns the federal law behind the ban.
Will Biden Stop The Tiktok Ban?
It doesn’t appear so. Multiple outlets reported Thursday the Biden administration did not plan on taking action against the ban, which Biden signed into law last year. A White House official told ABC News in a statement the law “will be up to the next administration to implement.” Still, ABC suggested Biden also won’t enforce the ban against app stores or internet providers, which are required to cut off access to TikTok. The non-intervention marked a shift from Wednesday, when NBC reported Biden was exploring legal options to stop the ban. CNN later reported the administration looked into delaying the ban but decided it doesn’t have legal authority. The law allows Biden to extend the deadline by 90 days, but only if there’s “evidence of significant progress” toward a sale.
Can Trump Stop Tiktok From Getting Banned?
Unclear. Trump—who is opposed to banning TikTok despite once pushing for a ban—takes office a day after the deadline, so he can’t stop the law from taking effect altogether. Once he enters the White House, he’s reportedly considering suspending the ban via an executive order for two or three months, but it’s unclear what impact that move will have, as companies like Apple and Google may still drop TikTok since they would risk financial penalties if they kept the app online. Alternatively, Trump could allow TikTok to go down and bring the app back to app stores and the internet with a one-time, 90-day extension that would potentially give time to help facilitate a sale of TikTok—but the law only allows an extension if ByteDance is making progress toward a sale. Former Justice Department official Alan Rozenshtein wrote in a Lawfare op-ed Trump could also lobby Congress to repeal the ban, though in doing so he would have to overcome the law’s bipartisan support. Here’s more on Trump’s options.
What Happens To Tiktok, Users And Creators If The App Is Banned?
TikTok will likely disappear from app stores, and even if users have already downloaded the app, TikTok has reportedly suggested the platform will be disabled in the United States when the ban takes effect. Read more here.
What U.s. Company Could End Up Buying Tiktok?
A range of companies have shown interest or been rumored to consider a purchase of TikTok (full list here). China, which has vowed to block the sale of TikTok’s algorithm, would have to approve a sale of TikTok to another company. McCourt’s Project Liberty—the group leading The People’s Bid For TikTok—has built a consortium to purchase TikTok that includes O’Leary and Guggenheim Securities. China is reportedly weighing allowing Musk to buy the app, but it’s unclear if he’s interested. Amazon has also been identified as a potential buyer, with experts pointing to TikTok and Amazon’s deepening ties, such as the announcement of a partnership this year allowing users to browse and purchase products from Amazon on TikTok. Amazon also became the third-largest advertiser on TikTok this year in the U.S. Oracle and Walmart could potentially make a joint bid for TikTok, as the two companies joined forces to buy the app in 2020 before reportedly being stopped by the Biden administration over security concerns. Microsoft could return to the table for TikTok after also trying to buy the app in 2020, though Microsoft CEO Satya Nadella said he was “happy with what I have” after talks fell through. Video-sharing platform Rumble publicly offered to buy TikTok early this year and could reenter the conversation, having said it was previously “ready to join a consortium with other parties seeking to acquire and operate TikTok inside the U.S.”
Who Is Billionaire Frank Mccourt?
McCourt, worth an estimated $1.4 billion as of Thursday, is an investor and entrepreneur with roots in his family’s Boston-based construction business founded five generations ago. He bought the Los Angeles Dodgers in 2004 and sold it eight years later in what was the largest sports sale at the time, and has invested the proceeds into real estate, sports, tech and media. He has since invested $500 million to Project Liberty, an organization that advocates for data privacy.
Who Is Billionaire Tiktok Investor Jeff Yass?
Yass, who has an estimated net worth of $49.6 billion, is a GOP megadonor and a major investor in TikTok. He reportedly met with Trump and became possibly the biggest influence behind Trump’s switch from attempting to ban the app to later opposing its removal.. The co-founder of global trading firm Susquehanna International Group, which owns about 15% of ByteDance, Yass owned a $33 billion stake in TikTok as of this March and has financially backed conservative lawmakers opposing the ban, such as Sen. Rand Paul, R-Ky., and Rep. Thomas Massie, R.-Ky., donating $24 million and $32,200 to each, respectively, according to The Wall Street Journal. Yass has reportedly threatened to stop donating to Congress members who support the ban against TikTok, which would threaten his multi-billion dollar investment in the app. The billionaire has donated millions of dollars to conservative PACs such as Club For Growth Action ($16 million), the Congressional Leadership Fund ($10 million) and the Protect Freedom PAC ($6 million).
What Happens To American Data If The App Is Shut Down?
All of Americans’ TikTok user data could be moved to China in the event that the app is banned from the U.S. A precedent was set for such a move in 2020, when TikTok operations ended in India and left the app and ByteDance with access to millions of Indian users’ data years after the shutdown, according to Forbes.
Big Number
About 170 million. That is how many Americans used TikTok as of April, according to the app.
Key Background
At the heart of the federal government’s issue with TikTok is national security and data privacy concerns linked to the app and its ties to China. U.S. officials have claimed the Chinese Communist Party could use the app to spy on Americans or influence public discourse. TikTok has shot down claims it is beholden to the Chinese government. The app’s CEO told Congress he “disagrees with the characterization” that the platform is spying on Americans and said TikTok is committed to protecting Americans’ data. After the law against TikTok was signed by Biden this year, the app said the requirement to sell itself is “illusory to the point of being no alternative at all.” Experts and reporting by Forbes have shown ByteDance and TikTok are significantly intertwined, as former National Security Agency general counsel Glenn Gerstell told Forbes this year: “There’s no way to take the U.S. piece out of TikTok and sell it to someone.” ByteDance has tried to quell concerns about TikTok by noting 100% of U.S. traffic was routed to Oracle and U.S. Digital Service infrastructure in the U.S as of 2022. It has also claimed it is roughly 60% owned by institutional investors including the Carlyle Group, General Atlantic and Susquehanna International Group. However, Forbes’ reporting has revealed that ByteDance has used TikTok to spy on journalists and TikTok mishandled sensitive data, including financial information, Social Security numbers and personal contacts of creators, advertisers, celebrities and politicians.
Further Reading
Supreme Court Will Hear TikTok Ban This Week—Here’s What To Expect (Forbes)
Who Is Frank McCourt, The Billionaire Trying To Buy TikTok? (Forbes)
Why A Powerful U.S. Court Thinks The TikTok Ban Doesn’t Violate The 1st Amendment(Forbes)
The TikTok Law Gives You A Right To Your Data. Here’s How To Request It. (Forbes)
If Trump Wants To ‘Save’ TikTok, He Might Need It To Get Banned First (Forbes)
Congress Warns Apple And Google They Must Ban TikTok In January (Forbes)
If TikTok Is Banned, Americans’ Data Could End Up Back In China (Forbes)
TikTok Asks Supreme Court To Stop Federal Ban (Forbes)
TikTok Spied On Forbes Journalists (Forbes)
TikTok’s China Problem (Forbes)
CORRECTION (1/9): This story has been updated to note Project Liberty is not a non-profit. The Project Liberty Institute is the organization’s non-profit arm.