TikTok seeks temporary halt on U.S. law that could force sale or ban
TikTok has requested a temporary halt to a U.S. law requiring its sale or ban, citing potential financial damage. The platform argues that the law, set to take effect in January 2025, could lead to massive losses for U.S. businesses and creators, urging time for a Supreme Court review.
- Tech
- Agencies and A News
- Published Date: 12:26 | 10 December 2024
- Modified Date: 12:29 | 10 December 2024
The Chinese social media platform TikTok has requested a temporary halt to the enforcement of a law that mandates its sale or ban. In the petition submitted to the Appeals Court, the company asked for a temporary injunction while awaiting a Supreme Court review.
The petition stated that the law, which is set to come into effect on January 19, 2025, would lead to the shutdown of TikTok, one of the country's "most popular expression platforms."
The petition also mentioned that the temporary measure would give time for the new U.S. administration to establish its position, potentially eliminating the need for the Supreme Court's review.
A ONE-MONTH SHUTDOWN COULD CAUSE OVER $1 BILLION IN LOSSES
Blake Chandlee, TikTok's Global Business Solutions President, stated in the petition that even a temporary shutdown of the platform would harm the thousands of businesses using TikTok to market their products. He noted that just one month of TikTok being closed could lead to an estimated $300 million in revenue loss for around 2 million content creators in the U.S., and over $1 billion in losses for small businesses across the country.
Chandlee also warned that the shutdown would result in a 29% loss of TikTok's targeted global advertising revenue for 2025, with these figures expected to rise if the platform remains closed for longer than a month.
THE COURT'S RULING IN FAVOR OF THE LAW OPENING THE PATH TO TIKTOK'S BAN
The U.S. government, last year, accused TikTok of exposing American user data to the Chinese government and took steps requiring the platform to either be sold to an American company or banned. A bill passed by Congress in March was signed into law by President Joe Biden.
Under the Biden administration's directive, TikTok was given until January 19, 2025, to sever all ties with its Chinese parent company, ByteDance, or face a ban in the U.S., cutting off user access.
With 170 million users, TikTok argued that this law violates the First Amendment of the U.S. Constitution, which protects free speech, and also conflicts with the U.S.'s "open internet" policy. TikTok filed an appeal in the Appeals Court to have the law overturned.
TikTok's appeal further argued that the short timeline given by the U.S. administration makes it technically and practically impossible to sever ties with ByteDance within the allotted time.
Last week, the Appeals Court ruled in favor of the law that would pave the way for TikTok's ban.
Meanwhile, U.S. President-elect Donald Trump, during his election campaign, opposed the law, which is set to take effect just a day before he assumes office on January 20, 2025.