Trump Seeks Supreme Court Intervention to Delay TikTok Ban, Citing Political Resolution
Friday, Dec 27, 2024 6:20 pm ET
TikTok's future in the United States hangs in the balance as President-elect Donald Trump asks the Supreme Court to pause the potential ban from going into effect until his administration can pursue a "political resolution" to the issue. The request came as TikTok and the Biden administration filed opposing briefs to the court, in which the company argued the court should strike down a law that could ban the platform by Jan. 19 while the government emphasized its position that the statute is needed to eliminate a national security risk.
Trump's amicus brief, written by D. John Sauer, Trump’s choice for solicitor general, argued that Trump alone possesses the "consummate dealmaking expertise, the electoral mandate, and the political will to negotiate a resolution to save the platform while addressing the national security concerns expressed by the Government." This suggests that Trump believes he can find a way to resolve the TikTok issue without compromising national security or American's free speech rights.
The argument submitted to the court is the latest example of Trump inserting himself in national issues before he takes office. The Republican president-elect has already begun negotiating with other countries over his plans to impose tariffs, and he intervened earlier this month in a plan to fund the federal government, calling for a bipartisan plan to be rejected and sending Republicans back to the negotiating table.
Trump's involvement in the TikTok case is notable, as he has previously expressed support for the app during his 2024 presidential campaign and has met with its CEO, Shou Chew, at his Mar-a-Lago club in Florida. This indicates that Trump may be more open to finding a solution that keeps TikTok operational in the United States, rather than imposing a ban. However, it is important to note that Trump's influence on the case is limited, as he is not the sitting president and will not take office until January 20, 2025, just one day after the January 19, 2025 deadline for TikTok's divestment from ByteDance.
The filings Friday come ahead of oral arguments scheduled for Jan. 10 on whether the law, which requires TikTok to divest from its China-based parent company or face a ban, unlawfully restricts speech in violation of the First Amendment. The law was signed by President Joe Biden in April after it passed Congress with broad bipartisan support. TikTok and ByteDance filed a legal challenge afterwards. Earlier this month, a panel of three federal judges on the U.S. Court of Appeals for the District of Columbia Circuit unanimously upheld the statute, leading TikTok to appeal the case to the Supreme Court.
In their brief to the Supreme Court on Friday, attorneys for TikTok and its parent company ByteDance argued the federal appeals court erred in its ruling and based its decision on "alleged ‘risks’ that China could exercise control" over TikTok’s U.S. platform by pressuring its foreign affiliates. The Biden administration has argued in court that TikTok poses a national security risk due to its connections to China. Officials say Chinese authorities can compel ByteDance to hand over information on TikTok’s U.S. patrons or use the platform to spread or suppress information. But the government "concedes that it has no evidence China has ever attempted to do so," TikTok’s legal filing said, adding that the U.S. fears are predicated on future risks.
In its filing Friday, the Biden administration said because TikTok "is integrated with ByteDance and relies on its propriety engine developed and maintained in China," its corporate structure carries with it risk. The White House has expressed its support for the TikTok ban bill, which would require ByteDance to divest or remove TikTok from American devices. The bill received overwhelming support in the House of Representatives, with 352 votes in favor and only 65 against it.
However, there are differing opinions on the matter, with civil liberties and digital rights groups arguing that a ban would infringe on freedom of speech. The bill still needs to clear the U.S. Senate, and its path forward is not guaranteed. The Senate will review the legislation, and potential legal challenges, similar to those faced by previous attempts to ban TikTok, could arise. The Senate’s approval is necessary for the bill to become law.
Trump's intervention in the TikTok case could have significant implications for the global tech industry, particularly in relation to U.S.-China trade tensions. If Trump succeeds in pausing or reversing the TikTok ban, China might retaliate against U.S. tech companies operating in China. For instance, Apple, which relies heavily on the Chinese market, could face potential retaliation. In 2020, China's state media suggested that Apple could be a target for retaliation if the U.S. continued to pressure Chinese companies like TikTok. This could disrupt the operations and revenues of these companies.
If Trump's intervention leads to a delay or reversal of the TikTok ban, it could create opportunities for other U.S. tech companies like Meta (Instagram Reels), Alphabet (YouTube Shorts), and Spotify. These companies could capture a portion of the American advertising revenue currently dominated by TikTok. However, this could also lead to increased competition in the social media landscape.
Trump's intervention could influence investor sentiment towards U.S. and Chinese tech companies. If the ban is delayed or lifted, it could boost the stock prices of companies like TikTok's parent company, ByteDance, and U.S. tech companies that benefit from the changing dynamics. Conversely, it could negatively impact companies that might face Chinese retaliation.
In conclusion, Trump's request to delay the TikTok ban could have significant implications for the global tech industry, particularly in relation to U.S.-China trade tensions. If granted, it could lead to a delay or reversal of the ban, creating opportunities for U.S. tech companies and potentially boosting investor sentiment. However, it could also lead to increased competition in the social media landscape and potential retaliation from China. The outcome of the Supreme Court's decision will be closely watched by investors and the tech industry alike.
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