TikTok has taken legal action by requesting a federal appeals court to prevent the Biden administration from enforcing a law that could potentially result in a ban on the popular social media platform until the Supreme Court reviews its challenge to the statute. This move comes after a panel of three judges on the same court recently ruled in favor of the government, deeming the law constitutional. The law mandates TikTok's China-based parent company, ByteDance, to divest its stakes in the social media company or face a ban.
If the law remains in effect, both TikTok and ByteDance have warned that the app could cease operations by January 19, 2025, impacting over 170 million American users. In a legal filing on Monday, attorneys for the companies highlighted the potential consequences of a shutdown, including a significant loss of daily users and a substantial decline in targeted global advertising revenue for the following year. They also noted the risk of losing talent as employees may seek opportunities elsewhere.
