Author: David Shepardson
Location: Washington, DC
In a recent Supreme Court hearing, the legal representative for TikTok and its parent company, ByteDance, delivered a stern warning regarding a law that might force the sale of the popular short-video app or its prohibition in the United States. The legal counsel warned that if Congress could enforce such a law on TikTok, it could potentially target other companies as well.
The referenced law, which was the subject of the Supreme Court’s deliberations on Friday, mandates a January 19 deadline for ByteDance to either sell TikTok or face a ban on national security grounds. Both companies have requested a delay in enforcing this law, arguing that it infringes on the First Amendment rights that protect against government interference with free speech.
Noel Francisco, acting as legal representation for TikTok and ByteDance, stated that if the Supreme Court were to support this law, it could potentially lead to similar actions against other companies.
During the hearing, Francisco gave an example, “AMC movie theaters were once owned by a Chinese company. If this law were to pass, Congress could mandate AMC to censor any films that it doesn’t approve of or promote those it does.”
The Justices indicated that they were likely to uphold the law, though some voiced their concerns regarding its implications on the First Amendment.
TikTok boasts a user base of approximately 170 million in the United States, equating to about half the country’s population. Congress passed this law last year with significant bipartisan support, citing concerns about the potential for the Chinese government to exploit TikTok for spying and covert influence operations.
Jeffery Fisher, the attorney representing TikTok content creators who are also challenging the law, pointed out during the Supreme Court hearing that Congress seems to be targeting TikTok exclusively, ignoring other major Chinese online retailers like Temu.
President Joe Biden signed the law and his administration is currently defending it in this case. The divestiture deadline is just a day before Donald Trump, who opposes the ban, assumes office as Biden’s successor.
Elizabeth Prelogar, Solicitor General, argued for the Biden administration stating the importance of enforcing the law on January 19 as planned to pressure ByteDance into divestiture.
The Supreme Court also discussed whether the potential use of TikTok for covert influence campaigns or propaganda by China justified its ban.
The final decision is eagerly awaited by the investing community and the general public alike, as it will set a significant precedent for future dealings with foreign-owned technology companies.
