A PYMNTS Company

US Appeals Court Expedites Review of TikTok Divestiture Order

 |  May 28, 2024

The U.S. Court of Appeals for the District of Columbia has announced a fast-track schedule to address the legal challenges surrounding a new law mandating China-based ByteDance to divest its U.S. TikTok assets by January 19, 2025, or face a nationwide ban.

The expedited schedule, set by the court on Tuesday, comes in response to a joint request made earlier this month by TikTok, ByteDance, a coalition of TikTok content creators, and the U.S. Justice Department. The urgency of the matter has prompted the court to schedule oral arguments for September.

The law in question, enacted amidst growing concerns over national security and data privacy, demands that ByteDance relinquish its control over TikTok’s U.S. operations. Lawmakers and intelligence officials have raised alarms about the potential for user data to be accessed by the Chinese government, a claim ByteDance has consistently denied.

Read more: TikTok Updates Data Usage Regulations To Fit EU Laws

TikTok and its parent company, ByteDance, argue that the divestiture order is unconstitutional and exceeds the government’s authority. According to Reuters, they are supported by a group of prominent TikTok content creators who fear the potential ban would severely impact their livelihoods and the broader creator economy.

The Justice Department, aligning with TikTok and ByteDance for a swift court schedule, underscores the complex and time-sensitive nature of the case. The decision to fast-track the hearing indicates the court’s recognition of the substantial impact and wide-ranging implications of the divestiture order.

As the September oral arguments approach, the tech industry and millions of TikTok users in the U.S. will closely watch the proceedings, which could set a precedent for how the U.S. government regulates foreign-owned technology companies.

Source: Reuters