The U.S. Supreme Court on Friday appeared inclined to rule against TikTok, which faces a potential ban unless its Chinese parent company divests ownership, according to media reports.
Justices heard TikTok’s argument that the federal law mandating its sale by Jan. 19 violates the First Amendment, while the U.S. government defended the law as addressing a national security threat. A decision is expected by next week.
The law, signed by President Joe Biden in April with bipartisan congressional support, aims to regulate a foreign-owned app that collects data from 170 million American users. While some justices expressed concerns about free speech implications, a majority viewed the law as necessary to mitigate risks of espionage or blackmail by China, according to reports.
TikTok claims its departure would impact over 7 million U.S. users relying on the app for advertising and sales, potentially leading to a $1.3 billion monthly revenue loss.
Meanwhile, President-elect Donald Trump, who previously attempted to ban TikTok during his first term, has since softened his stance. In December, he asked the Supreme Court to delay the ban, citing its popularity among young Americans and its role in countering competitors like Facebook. His shift reportedly coincided with a meeting with Republican donor Jeff Yass, who has ties to TikTok’s parent company ByteDance, though Trump denied discussing the company.
Trump also met with TikTok CEO Shou Chew in December and expressed a newfound appreciation for the app, describing it as a way to connect with younger voters.