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In a landmark ruling on January 10th, the Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act (the “Act”), which banned the popular social media app TikTok.[1] The ban is set against the backdrop of consistent warnings from U.S. officials that TikTok poses a national security threat due to its Chinese parent company, ByteDance.[2] Concerns stem from Chinese national security laws that require Chinese organizations to cooperate with intelligence gathering.[3] Many U.S. officials worry the Chinese government could use TikTok to spy on Americans or manipulate public opinion by controlling content visibility.[4]
In 2020, then-President Donald Trump issued an executive order targeting ByteDance, citing TikTok’s ability to collect vast amounts of user data. Federal courts blocked the order, delaying efforts to force ByteDance to divest its U.S.[5] TikTok operations. The Biden administration later attempted to negotiate security agreements with ByteDance to divest its US operations, but these were deemed insufficient.[6] Eventually, Congress passed the Act, which was later signed into law on April 24, 2024.[7] The Act mandated that ByteDance divest TikTok within nine months or face a U.S. ban. ByteDance challenged the Act in court, arguing it violated the First Amendment but was unsuccessful.[8] ByteDance mounted a First Amendment challenge to the Act, but the Supreme Court did not agree.[9]
The Department of Justice defended the Act, stating that its primary goal was to prevent Chinese government interference in U.S. media and protect American user data.[10] Although TikTok and ByteDance argued that the ban violated Americans’ free speech rights, the U.S. government maintained that the restriction was based on security concerns rather than content regulation.[11]
President-Elect Donald Trump filed an Amicus Curiae brief on December 27, 2024, arguing that enforcing the TikTok divestiture deadline on January 19, 2025—one day before his inauguration—limited his administration’s ability to negotiate a resolution.[12] Ultimately, on January 10th, the Supreme Court upheld the Act, citing significant national security concerns.[13] SCOTUS analyzed the Act under the strictest level of First Amendment scrutiny, and its decision affirmed a prior ruling from the D.C. Circuit, which found the Act narrowly tailored to serve compelling government interests.[14]
When the Act took effect on January 19th, TikTok briefly went dark. But just over 12 hours later, TikTok returned to Americans nationwide.[15] On January 20, President Trump issued an executive order staying the enforcement of the Act for 75 days.[16] This delay was intended to give his administration time to explore alternative resolutions, including shifting TikTok’s ownership to a joint venture where at least 50% would be controlled by U.S. interests.[17]
Despite Trump’s order, legal experts argue that it does not override the Act.[18] On the one hand, TikTok resumed operations, and some companies reinstated web support.[19] But on the other hand, companies like Apple and Google initially hesitated to restore TikTok to their app stores due to the legal risks and hefty fines associated with violating the Act.[20] Ultimately, TikTok returned to the Apple and Google app stores on February 13th.[21]
As the 75-day window progresses, potential buyers are emerging.[22] YouTube and TikTok star MrBeast has joined a group of investors seeking to acquire TikTok, led by Jesse Tinsley, CEO of Employer.com.[23] Other interested parties include Elon Musk and “The People’s Bid for TikTok,” spearheaded by Kevin O’Leary and backed by Guggenheim Securities.[24] TikTok’s U.S. assets are estimated to be worth between $40 billion and $50 billion.[25]
Former Los Angeles Dodgers owner Frank McCourt has proposed an offer around $20 billion.[26] Still, President Trump supports the idea of the U.S. government acquiring a 50% stake in TikTok to preserve American jobs and maintain the platform’s presence in the country.[27] As negotiations unfold, the final fate of TikTok in the U.S. remains to be determined.
[1] Katie Buehler, Supreme Court Upholds TikTok Sale-Or-Ban Law, Law360 (Jan. 17, 2025), https://www.law360.com/articles/2283259/supreme-court-upholds-tiktok-sale-or-ban-law.
[2] Maria Sole Compinoti, MrBeast is Officially Bidding for TikTok, CNN (Jan. 21, 2025), https://www.cnn.com/2025/01/21/business/mr-beast-buy-tiktok-ceo/index.html.
[3] Id.
[4] Id.
[5] Sophie Jin, Andrew McAllister, and Antonia Tzinoca, U.S. Supreme Court Upholds TikTok Sale-or-Ban Law, JDSupra (Jan. 20, 2025) https://www.jdsupra.com/legalnews/u-s-supreme-court-upholds-tiktok-sale-5157775/.
[6] Id.
[7] Id.
[8] Id.
[9] Id.
[10] Ashley Gorski and Patrick Toomey, Banning TikTok is Unconstitutional. The Supreme Court Must Step In., ACLU (Jan. 15, 2025), https://www.aclu.org/news/national-security/banning-tiktok-is-unconstitutional-the-supreme-court-must-step-in.
[11] Id.
[12] Buehler, supra note 1.
[13] Buehler, supra note 1.
[14] Buehler, supra note 1.
[15] Antonio Pequeno IV and Mary Whitfield Roeloffs, TikTok Ban Live Updates, Forbes (Jan. 21, 2025), https://www.forbes.com/sites/antoniopequenoiv/2025/01/20/tiktok-ban-live-updates-trump-halts-ban-for-75-days-after-ceo-attends-inauguration/.
[16] Sally Ho, Trump Issues an Executive Order to Suspend the US TikTok Ban. But Can it Stick?, AP (Jan. 20, 2025), https://apnews.com/article/trump-tiktok-ban-executive-order-50df1f96c25576762b65e24b63ce61eb.
[17] Exec. Order No. 14166, 90 C.F.R. 8611 (2025).
[18] Bobby Allyn, Trump Signs Executive Order to Pause TikTok Ban, Provide Immunity to Tech Firms, NPR (Jan. 20, 2025), https://www.npr.org/2025/01/20/nx-s1-5268701/trump-executive-order-tiktok-ban.
[19] Id.
[20] Id.
[21] Todd Spangler, TikTok Returns to Apple, Google App Stores, Variety (Feb. 13, 2025), https://variety.com/2025/digital/news/tiktok-restored-apple-app-stores-google-play-1236307488/.
[22] Greta Cross, TikTok’s Fate Remains Unclear. Here’s Who Wanted to Purchase the Social Media Platform, USA Today, (Jan. 22, 2025), https://www.usatoday.com/story/tech/news/2025/01/22/tiktok-buyer-elon-musk-mr-beast/77877432007/.
[23] Id.
[24] Id.
[25] Compinoti, supra note 2.
[26] Id.
[27] Id.