TikTok Ban in US Likely: Court Orders ByteDance to Divest; Banned in India Since 2020

It is almost certain that China’s short video app TikTok will be banned in the United States. A court has ordered TikTok’s parent company, ByteDance, to sell its stake by January 19 or face a ban in the US.

US Federal Court Dismisses TikTok’s Free Speech Appeal

The US Federal Court rejected TikTok’s free speech appeal on Friday. During the hearing, a three-judge bench dismissed ByteDance’s claims, stating that no American law hinders free speech in any way.

Justice Ginsburg’s Verdict on Free Speech Protection

Justice Douglas Ginsburg wrote in the decision: “The First Amendment exists to protect freedom of speech in the US. The government has safeguarded free speech from adversarial nations and has prevented such nations from collecting data on American citizens.”

TikTok Bans in Other Countries

The Indian government banned TikTok in June 2020, followed by the British government in March 2023. In addition, approximately 50 countries, including Pakistan, Nepal, and Afghanistan, have also banned TikTok.

What Is the Issue?

• US President Joe Biden introduced a law to ban TikTok, citing it as a threat to national security and user privacy.
• The Senate passed the bill with a 79-18 vote.
• On April 24, 2024, Biden signed the bill into law, requiring ByteDance to sell its stake within nine months.
• TikTok CEO Shou Zi Chew stated they would challenge the law in court, but the federal court rejected their appeal.

TikTok’s Options: Supreme Court or Presidential Intervention

• ByteDance and TikTok may take the case to the Supreme Court, though it is unclear if the court will take up the matter.
• The newly elected President Donald Trump, taking office on January 20, might oppose the ban. Trump has previously defended TikTok during his campaign.

Impact of the Ban on TikTok

• Many content creators and small businesses relying on TikTok could face unemployment.
• As of March 2024, over 70 million small US businesses use TikTok, collectively earning ₹1.27 lakh crore in 2023.
• Advertisers might shift to other platforms like Meta, with new competitors potentially emerging.
• Oracle Corp., which provides internet hosting for TikTok, may suffer financial losses.

TikTok Ban and Chinese Apps in India

India banned TikTok and over 500 Chinese apps in June 2020, citing threats to sovereignty and security following border clashes with China. The apps were accused of promoting pornography and stealing Indian users’ data.

TikTok India’s Statement at the Time of Ban

Nikhil Gandhi, TikTok India’s CEO, stated: “We comply with Indian laws and all data privacy regulations. We have never shared Indian user data with any foreign government, including China, and will not do so in the future.”

Legal Basis for App Bans in India

Under Section 69A of the IT Act, 2000, the government can block access to any computer resource in the interest of national sovereignty, security, and unity. Violation of such orders can lead to seven years of imprisonment and fines.