TikTok Faces Impending Ban Unless Sale to US Buyer is Made

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TikTok Faces Impending Ban Unless Sale to US Buyer is Made
TIKTOKBANSUPREME COURT
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The Supreme Court is set to rule on the ban of TikTok in the coming days. The deadline for the app to make a decision on its future is Sunday. TikTok will be effectively banned, losing 170 million US users unless its China-based owner, ByteDance, sells itself to an American buyer or the Supreme Court overturns the law forcing divestment. While legal experts anticipate the court to allow the law to take effect, they suggest potential less drastic measures such as warning messages or data collection restrictions. If the ban stands, TikTok's options are limited – sell to a US investor, shut down, or effectively shut down ByteDance. The company has been firm in its refusal to sell the app, citing its algorithm's popularity and high value. There are reports of China considering a sale to Elon Musk, who is a key ally of the incoming president, Donald Trump. Trump has also filed a brief with the Supreme Court requesting a temporary stay on the law to negotiate a sale or alternative arrangement. The fate of TikTok may ultimately rest in Trump's hands as he will assume office the day after the ban. The DOJ, under his leadership, could choose not to enforce the ban, allowing app stores to continue hosting the app. However, this would be a risky move, potentially leading to fines and other penalties. The law also stipulates specific requirements for TikTok ownership to remain operational in the US. Even if a ban is implemented, TikTok could potentially return if the divestment requirement is met in the future. However, the financial repercussions of a shutdown could hinder its comeback.

on the impending ban in the coming days with the deadline for the popular app to make a decision on what its future holds coming on Sunday.

If the Supreme Court does not overturn the ban, TikTok will be left with few options — sell itself to a U.S. investor, shut it down orTikTok will effectively shut down Trump has flipped his position on a ban of TikTok after trying to force it out of the U.S. during his first administration via executive order. He has even filed a brief with the Supreme Court asking it to put a temporary stay on the law so he could negotiate a sale or another arrangement to keep it available for Americans.

“If the service providers don't , they can be fined a lot of money. It's $5,000 per user of the app — even if that particular service provider has fewer than 170 million through their service — but still, it's going to be huge,” said Nancy Costello, clinical professor of law at Michigan State University and the director for the First Amendment Clinic and the Free Expression Online Library and Resource Center.

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