US court upholds law on forced sale of TikTok

Under the law developed by the United States Congress, Byte Dance must sell TikTok’s assets in the United States within six months. US President Joe Biden signed the document in April, giving the Chinese company until January 19, 2025 to close the sale of the application.

The appeals court opinion emphasized that the claims against Byte Dance “are part of a broader effort to counter the threat to the national security of the United States posed by China.” Washington fears that TikTok’s connection to China increases the risk of Americans’ sensitive data ending up in the hands of Chinese authorities.

The appeals court’s decision could still be overturned by the U.S. Supreme Court. If that doesn’t happen, Biden will have to decide whether to give Byte Dance a 90-day grace period to complete the sale. However, to do this, the Chinese company must demonstrate that it made sufficient efforts to sell the asset, Reuters notes.

After January 20, TikTok’s fate will be in the hands of US President-elect Donald Trump. His inauguration is scheduled for this day. During the election campaign, Trump said he would not allow TikTok to be banned.

According to Reuters, around 170 million people use the social network in the United States. ByteDance said it has no plans to sell its US assets. Even if the company decides to sell the app, it will need permission from Chinese authorities, who probably won’t allow it, TechCrunch notes.