The Supreme Court has ruled against TikTok in its challenge against a divest-or-ban law, stating that the law does not violate the First Amendment rights of TikTok and its creators. The law requires TikTok's owner, ByteDance, to divest from its US app by January 19 or face a shutdown in the country.
As a result, TikTok is likely to cease operations in the US on Sunday as app stores and other business partners cut ties with the company to comply with the law. However, President-elect Donald Trump may still try to rescue TikTok once in office.
The Biden administration has indicated that it will leave the implementation of the law to President-elect Trump given the timing of the transition. Trump, who has expressed opposition to a TikTok ban, has promised to review the situation and make a decision about the app.
TikTok CEO Shou Chew has thanked Trump for the opportunity to work together to find a solution to keep TikTok available in the US. Despite the Supreme Court's decision, TikTok may still shut down the app on its own accord on Sunday.
The law, known as The Protecting Americans from Foreign Adversary Controlled Applications Act, aims to address national security concerns related to TikTok's data collection practices and its relationship with a foreign adversary. The Supreme Court's decision was largely expected, with legal analysts predicting that the court would rule against TikTok in deference to Congress' authority over national security matters.
If TikTok does shut down, it could have significant impacts on various industries, including the creator economy, e-commerce, book publishing, and more. Other ByteDance-owned apps, such as CapCut and Lemon8, may also be subject to the divest-or-ban law.