Investing.com — TikTok’s fight to overturn a looming U.S. ban faces a tight deadline, with oral arguments scheduled for January 10, just nine days before the January 19 deadline for ByteDance to divest its U.S. operations. The timeline raises the odds of the law being upheld, potentially forcing a ban or sale of the app.
The stakes are high. Firms not complying face penalties of $5,000 per user for data violations after a 90-day grace period, which could prompt pre-emptive action from app stores.
President-elect Donald Trump, set to be inaugurated a day after the ban takes effect, has filed a brief urging the Supreme Court to delay the statute. Trump seeks time for a negotiated resolution, opposing the ban but refraining from addressing the broader First Amendment dispute.
The Biden administration supports the ban, citing national security risks tied to TikTok’s Chinese ownership. However, a Trump-led White House could shift policy, complicating the outcome.
If the court prioritizes national security over free speech concerns, TikTok may face removal from U.S. app stores. Competitors like Meta (NASDAQ:META) and Alphabet (NASDAQ:GOOGL) stand to gain from such an outcome.
TikTok’s fate now hinges on the Supreme Court and the changing political landscape, with January 10 arguments offering critical insights into the case’s direction.
