A federal appeals court has upheld a law requiring TikTok to sever ties with its China-based parent company, ByteDance, by mid-January or face a potential ban. The U.S. Court of Appeals for the District of Columbia Circuit ruled the law is constitutional, rejecting TikTok’s argument that it violates the First Amendment. The court emphasised that the government’s action was aimed at protecting U.S. citizens from potential data collection and manipulation by a foreign adversary, namely China.

The law, signed by President Biden in April, stems from concerns over national security risks, including the possibility that TikTok could provide user data to the Chinese government or allow Beijing to influence the app’s algorithm. However, TikTok has consistently denied these claims, stating that the U.S. government has not provided evidence of such actions. The company also argues that the law is based on hypothetical future risks.

TikTok and ByteDance plan to appeal to the Supreme Court, with legal experts questioning the balance between national security concerns and free speech protections. Meanwhile, former President Trump, who previously sought to ban TikTok, has expressed opposition to the ban and indicated a desire to find a solution to preserve the platform.

If the ruling stands, the U.S. Justice Department would enforce the law, imposing fines on app stores and internet hosts that continue to support TikTok. Meanwhile, potential buyers, including former Treasury Secretary Steven Mnuchin, are exploring options to purchase TikTok’s U.S. operations.