TikTok Faces New Setback in the U.S.: Imminent Ban Looms

TikTok continues to struggle against a law passed by the U.S. Congress and signed by President Joe Biden, which mandates the platform's ban unless it is sold by its parent company, ByteDance. This law is set to take effect on January 19, 2024. However, just one week ago, TikTok filed an emergency injunction request to prevent the law’s enforcement.

TikTok's argument for an emergency injunction was that it would allow time for the U.S. Supreme Court to review the case. It would also give the incoming Trump administration an opportunity to clarify its stance on the social media platform. Trump had previously suggested in a video that he might take action against TikTok’s ban. Despite these arguments, TikTok’s request for an emergency injunction was ultimately denied by the U.S. court. A statement from the court read, "The petitioners have not identified any case in which a court, after rejecting a constitutional challenge to a law passed by Congress, has blocked the law’s enforcement while the Supreme Court considers an appeal."

This ruling means that TikTok is set to be banned in the U.S. starting January 19, one day before the inauguration of Donald Trump.

In its petition, TikTok also invoked economic concerns. The company pointed to the potential financial fallout from the ban, highlighting that it has 170 million users in the U.S. and that the new law could cost small businesses and creators up to $1 billion and $300 million respectively, within just one month. TikTok further emphasized that, in 2023 alone, its advertising, marketing, and organic reach contributed $24.2 billion to the U.S. economy, with the platform generating $8.5 billion in GDP.

The law passed by Congress mandates TikTok’s ban unless ByteDance sells the platform by January 19. TikTok had hoped to delay its enforcement, allowing time for the Supreme Court to rule and for the new Trump administration to weigh in, but the court’s rejection of the emergency injunction means the ban remains on track.