The U.S. Supreme Court has unanimously upheld a ban on the video-sharing app TikTok, citing national security concerns due to its ownership by Chinese company ByteDance.
The ruling requires app store operators, including Apple and Google, to halt new downloads of TikTok by Sunday or face fines of $5,000 per user, potentially leading to penalties amounting to $850 billion.
The court's decision acknowledges concerns raised by Congress over TikTok’s data collection practices and its ties to a foreign adversary, emphasizing the necessity of divestiture to safeguard national interests.
Without immediate assurances from the Biden administration, TikTok announced it plans to cease operations in the United States on January 19, affecting its 170 million American users.
The ruling places additional pressure on major technology companies such as Apple, Google, Microsoft, and Amazon to reevaluate their relationships with ByteDance.
Experts highlight potential reputational and financial risks for these companies should they fail to dissociate from the Chinese firm.
Geoffrey Cain, policy director at the Tech Integrity Project, noted the implications of the ruling, emphasizing the need for tech giants to sever ties.
Senator Tom Cotton, who supports the ban, warned of substantial penalties for non-compliance.
The Biden administration has deferred enforcing the ban to the incoming administration of President-elect
Donald Trump.
Trump has pledged to address the situation upon taking office.
The decision adds further uncertainty to TikTok’s future, with ByteDance facing intensified calls to divest in order to mitigate US national security concerns.