Court Upholds TikTok Ban: Urgent Call for ByteDance to Divest

A U.S. appeals court has upheld a law mandating TikTok's Chinese parent company ByteDance to sell its U.S. stake. The law, passed in April, requires divestment by January 19 or the app faces removal. TikTok may appeal to the Supreme Court but risks losing a significant user base.

In a significant legal development, a federal appeals court has dismissed TikTok's plea to delay a law mandating its parent company ByteDance to relinquish its stake. The decision comes amid national security concerns, with arguments based on First Amendment rights deemed insufficient by the court.

The contentious law, part of a foreign policy package, stipulates ByteDance has until January 19 to divest or face drastic measures, including removal from app stores and termination of hosting services across the U.S. President Biden ratified the law, although a potential 90-day extension exists if a sale is underway.

This ruling intensifies pressure on TikTok to act swiftly or face significant repercussions, including the potential loss of up to a third of its U.S. users. Meanwhile, lawmakers have urged digital giants like Apple and Google to prepare for TikTok's possible app store removal, underscoring the escalating tensions between the U.S. and China over data security.

(With inputs from agencies.)