WASHINGTON (TNND) -- TikTok's operational future in the United States is in jeopardy following a federal appeals court ruling that denied its request to overturn a law banning the platform. This decision sets the stage for a potential Supreme Court showdown.
The ban is set to take effect on January 19, a day before President-elect Donald Trump assumes office. TikTok has filed a legal request for the Supreme Court to pause the enforcement of the ban until it can hear its case.
The legislation banning TikTok was signed by President Joe Biden earlier this year due to national security concerns over the platform's Chinese ownership by ByteDance, which critics allege could lead to data sharing with the Chinese government. TikTok has denied these allegations.
Despite its arguments centered on free speech rights, TikTok has yet to convince the courts to rule in its favor. The appeals court stated that the government's actions aim to protect American citizens from foreign adversaries.
Legal experts anticipate that the Supreme Court may choose to hear the case, but TikTok's options are dwindling. If the Supreme Court declines to hear the case, TikTok may need to find an American investor to facilitate a sale, though both TikTok and ByteDance have indicated that a sale is not feasible.
If the ban is enforced, TikTok could lose one-third of its daily users within a month, significantly impacting its presence in the U.S. market. Competing platforms like Meta's Reels and YouTube Shorts may benefit from TikTok's potential decline, but neither has matched TikTok's unique user engagement model.
As the deadline approaches, the landscape of social media in the U.S. could be reshaped dramatically.