A PYMNTS Company

TikTok Seeks Emergency Block on Divestment Law Ahead of Supreme Court Review

By  |  December 9, 2024
TikTok Seeks Emergency Block on Divestment Law Ahead of Supreme Court Review

TikTok and its parent company, ByteDance, have filed an emergency motion with the U.S. Court of Appeals for the District of Columbia, seeking to temporarily block a law that would force ByteDance to divest its U.S. operations of TikTok by January 19, 2025, or face a nationwide ban. The companies are requesting a delay while the U.S. Supreme Court considers reviewing the case, according to Reuters.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    Subscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In their motion, the companies warned that enforcing the law would effectively shut down TikTok, a platform with over 170 million monthly U.S. users, just before a new presidential administration takes office. The filing emphasizes the platform’s significance as a major venue for public discourse and entertainment, per Reuters.

    This appeal follows a decision on Friday, when a three-judge panel upheld the legislation requiring the divestiture. The ruling grants sweeping powers to the U.S. government to ban foreign-owned applications, citing concerns about data collection from American users. This echoes similar efforts in 2020 when then-President Donald Trump sought to ban both TikTok and Tencent-owned WeChat, though courts blocked those moves.

    We’d love to be your preferred source for news.

    Please add us to your preferred sources list so our news, data and interviews show up in your feed. Thanks!

    Add as Preferred Source

    Related: US Appeals Court Upholds TikTok Divestment Law, Paving Way for Potential Ban

    Lawyers for ByteDance and TikTok argue that the possibility of the Supreme Court overturning the lower court’s decision is substantial enough to justify a temporary delay. According to the companies, this pause would also allow President-elect Donald Trump’s incoming administration time to review its stance on the issue. Trump, who takes office on January 20, has previously indicated opposition to banning TikTok.

    ByteDance has noted that the current decision creates uncertainty about whether TikTok could secure a 90-day extension of the January deadline. To qualify, ByteDance would need to demonstrate significant progress toward a divestiture — a requirement the company may struggle to meet.

    President Joe Biden, in the final weeks of his administration, holds the authority to grant the extension or enforce the looming deadline. The handoff between administrations adds another layer of complexity to the case.

    The law underpinning the divestment order is part of broader U.S. efforts to mitigate potential risks posed by foreign-owned applications. The government has expressed concerns about TikTok’s data practices and alleged links to the Chinese government, a point ByteDance has consistently denied.

    Source: Reuters