Investing.com – TikTok's fight to overturn the impending US ban faces a tight deadline, with oral arguments scheduled for January 10, just nine days before the January 19 deadline for ByteDance to divest its US operations. The timeline increases the odds that the law will be upheld, which could lead to a ban or sale of the app.
The risks are high. Companies that don't comply face penalties of $5,000 per user for data breaches after a 90-day grace period, which could prompt app stores to take preventive action.
President-elect Donald Trump, who is scheduled to be inaugurated the day after the ban goes into effect, has filed a brief urging the Supreme Court to delay the law. Trump, seeking time to reach a negotiated solution, opposes the ban but refrains from addressing the broader First Amendment dispute.
The Biden administration supports the ban, citing national security risks associated with TikTok's Chinese ownership. However, a Trump White House could change policy, complicating the outcome.
If the court prioritizes national security over free speech concerns, TikTok could face removal from US app stores. Rivals like Meta (NASDAQ:) and Alphabet (NASDAQ:) would benefit from such an outcome.
TikTok's fate now rests on the Supreme Court and the changing political landscape, with the January 10 arguments offering critical insights into the direction of the case.
