
Although TikTok called the law unconstitutional and said it violates the First Amendment rights of its 170 million users, a three-judge panel on the appeals court rejected that argument and said in an opinion that the law “is narrowly tailored to protect national security.”
TikTok warned that one month of a U.S. ban would result in U.S. small businesses and social media creators losing $1.3 billion in sales and earnings.
President-elect Donald Trump has not publicly stated whether he plans to enforce the effective TikTok ban when he officially takes office on Jan. 20.
Trump tried to push through a ban in his first administration, but his rhetoric on TikTok began to turn after the president-elect met in February with billionaire Jeff Yass, a Republican megadonor and a major investor in the Chinese-owned social media app.
Yass’ trading firm Susquehanna International Group owns a 15% stake in ByteDance, while Yass maintains a 7% stake in the company, equating to about $21 billion, NBC and CNBC reported in March. That month it was also reported that Yass was a part owner of the business that merged with the parent company of Trump’s Truth Social
.
Google declined CNBC’s request for comment. Apple didn’t respond to requests for comment.
A TikTok spokesperson reiterated the company’s plan to take the case to the Supreme Court, “which has an established historical record of protecting Americans’ right to free speech.”
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