TikTok faces looming ban as court upholds divestment law

TikTok creators voiced their shock on Friday after a federal court upheld a law that could ban the app in the US by mid-January.

The law—that President Joe Biden signed earlier this year—requires TikTok’s Chinese owner, ByteDance, to sell the app or face a ban due to national security concerns.

The ruling by a three-judge panel of the US Court of Appeals for the District of Columbia was described as a significant victory for the Justice Department.

The court stated that the divestment law, passed with bipartisan support, was designed to protect US national security interests against potential threats from China’s influence over the app.

The platform claims the law violates free speech.

Creators who rely on TikTok for 80% of their clients expressed anxiety over losing their livelihoods.

Others, including comedian Alex Pearlman, highlighted the uncertainty around monetization and TikTok Shops. 

The ban is set to take effect a day before Donald Trump’s inauguration. Though Trump was not a supporter of the app in his first term and tried to ban it via an executive order, he has since reversed his stance.

TikTok, which boasts 170 million users in the United States, is expected to appeal the decision to the Supreme Court.