TikTok, the Chinese-owned, short-form video-sharing application, has become entwined with a legal issue after a federal appeals court's decision. Even more recently, the court declined the app's motion for a temporary postponement of the ban order that will preclude the app in the States if ByteDance, its parent company, does not divest the app by January 19.
In the last couple of years, TikTok's existence currently remains rather uncertain.
Appeals Court Dismisses TikTok's Application for Staying
As CNN reported, the US Court of Appeals for the District of Columbia Circuit rejected TikTok's appeals to postpone. The court noted that the new law is constitutional under the First Amendment as the court applies the heightened scrutiny test.
Adding to this, with the flight of prominent brands, this only poses a challenge to the survival of TikTok in the US under a new owner it is still struggling to define itself, as is ByteDance.
Read More: TikTok Faces Lawsuit Over Alleged 'Financial' Exploitation of Children Through Virtual Currency
Supreme Court Showdown Possible
TikTok will likely appeal the case to the Supreme Court. Yet, it is still not clear whether the court will take up the case or decide the matter before the January 19 deadline.
Effect of the Law and Executive Discretion
The law, signed into effect by President Joe Biden in April, requires TikTok to end its relationship with ByteDance or face removal from the app stores and hosting services in the U.S.
Furthermore, the law does contain an exception for a one-time, 90-day extension if a sale is pending, but the Chinese government has promised to thwart any divestiture involving TikTok's proprietary algorithm.
National Security Concerns Drive the Legislation
This makes it appear that US lawmakers and agencies have grave concerns regarding how the Chinese government could exploit TikTok as an espionage tool and influencer.
The appeals court seems to strengthen the fears with the use of the words "compelling" and "well-founded."
Its US operations would suffer severe losses as a result of the imposition of the ban, in the legal filings of the company. The platform asserts that it will lose out on one-third of the daily active users within one month.
With around 170 million users in its land, the stakes are enormously high for both TikTok and its enormous user count.
TikTok Updates Might Stop, But Access Will Still Work
The Justice Department has countered the claims of immediate harm by TikTok, arguing that existing users would still have access to the app, though updates and new downloads would be unavailable.
Earlier, ByteDance said that it will not sell TikTok.
"This Court's holding that the Act satisfies strict scrutiny is sure to attract the Supreme Court's attention," they wrote in court filings. "It is, at the very least, a close question whether the Act is the rare law that would survive strict scrutiny."
Meanwhile, tech giants Apple and Google have received formal warnings to prepare for TikTok's removal from their app stores by the January deadline.
Political Pressure Mounts
Other members of the House China Committee include the Republican Chairman John Moolenaar and Democrat Raja Krishnamoorthi. They have requested that TikTok comply with the requirement of divestiture. They have also demanded that Apple and Google carry out the ban as is expected.
The TikTok ban in one of the largest markets in the world could mean disaster for businesses. Entrepreneurs relying on TikTok Shop, as well as content creators, will be affected by this nationwide block.
