TikTok Faces Lawsuit Over US Law That Could Ban the Platform

On Monday, the U.S. government and TikTok are set to engage in a crucial court case that could significantly impact the future of the popular social media platform, which is used by nearly half of Americans. The legal battle will unfold at the federal appeals court in Washington, where attorneys for both sides will present their arguments.

TikTok, along with its parent company ByteDance, is challenging a U.S. law that mandates a separation from its Chinese ties or risk a ban in the U.S. by mid-January. This legal dispute is anticipated to escalate to the U.S. Supreme Court.

The law, enacted by President Joe Biden in April, emerged from a prolonged series of discussions in Washington surrounding TikTok’s alleged national security threats, primarily due to its connections with China. TikTok contends that this law violates the First Amendment, while critics argue that it resembles repressive measures often seen in authoritarian regimes.

The Justice Department highlighted two main concerns regarding TikTok in documents filed over the summer. Firstly, TikTok is said to collect an extensive range of user data, encompassing sensitive viewing habits that could potentially end up in the hands of the Chinese government. Secondly, authorities believe that TikTok’s proprietary algorithm may be exploited by Chinese officials to influence the content displayed on the platform.

TikTok staunchly denies these allegations, asserting that it does not share user data with the Chinese government, and maintains that the concerns raised have not been substantiated. In their court filings, TikTok and ByteDance’s attorneys argued that lawmakers were seeking to penalize the platform based on assumed propaganda present on it. They also emphasized that divestment is impractical, asserting that the app would shut down by January 19 if the law is not blocked.

“Even if divestiture were possible, TikTok in the United States would still effectively become a diluted version of itself, stripped of the innovative technology that customizes content for users,” the companies stated in their June legal brief. They expressed concern that this would isolate U.S. users from the broader TikTok community worldwide.

Proponents of TikTok argue that a ban could disrupt the marketing and retail landscapes, affecting countless content creators, some of whom have filed lawsuits against the government, with TikTok covering the legal expenses. This lawsuit has been combined with TikTok’s complaint, along with another case from conservative creators affiliated with BASED Politics Inc.

Although parts of the government’s rationale for the law are public, significant portions of the filings have been classified, keeping them obscured from public scrutiny. TikTok and ByteDance have requested the court dismiss these secret filings or appoint a judge to evaluate the materials, which the government opposes, claiming it would delay the case. If accepted, legal experts warn that these secret documents could obscure critical factors influencing the eventual ruling.

In a redacted statement from July, the Justice Department alleged that TikTok had responded to directives from the Chinese government regarding content moderation on its platform. Nevertheless, they noted that there is no evidence of this occurring within the U.S. operations of TikTok, although they caution that such risks exist.

In another court submission, the DOJ declared that the U.S. does not have to wait for clear detrimental actions from foreign adversaries before addressing potential threats.

However, TikTok asserts that the government could adopt a more measured approach to address its concerns.

During negotiations with the Biden administration over two years ago, TikTok proposed a comprehensive 90-page agreement that allowed third-party monitoring of its algorithm and content operations. It claims to have invested over $2 billion in voluntary measures, including keeping U.S. user data on servers managed by Oracle. However, these negotiations collapsed when government representatives left discussions in August 2022.

Justice officials have claimed that adhering to the proposed agreement would be unfeasible due to TikTok’s complexity and scale. They stated that the only real solution to the concerns is dismantling ties between TikTok and ByteDance, given the close relationship between Chinese companies and their government.

Some observers worry that such a separation could deepen the ongoing “decoupling” between the U.S. and China, particularly as other Chinese companies like Shein and Temu gain traction in the West. Recently, the Biden administration proposed regulations tightening restrictions on products shipped from China.

ByteDance has publicly declared that TikTok is not for sale. Despite this, some investors, including former Treasury Secretary Steven Mnuchin, have expressed interest in acquiring the platform. However, it is likely that any sale would exclude TikTok’s highly sought-after algorithm, raising doubts about whether it could continue to deliver the personalized content users currently enjoy.

The political ramifications of this issue are unfolding in unexpected ways. While the law has garnered bipartisan support in Congress, some lawmakers from both progressive and conservative sides have raised concerns about empowering the government to impose a ban on a platform used by 170 million Americans. Interestingly, former President Donald Trump, who previously sought to ban TikTok, now opposes such a ban, arguing it would benefit his competitor, Facebook, which he has criticized since the 2020 election.

Various free speech and social justice organizations have filed amicus briefs supporting TikTok, asserting that the law limits users’ First Amendment rights and impedes the voices of marginalized communities who rely on the platform for advocacy. Meanwhile, the Biden administration has received support from over 20 Republican attorneys general and former national security officials advocating for the law’s enforcement.