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The U.S. Supreme Court recently ruled on the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), a law targeting TikTok and its parent company, ByteDance. Passed by Congress in April 2024, the act prohibits the hosting and distribution of apps deemed national security threats unless their U.S. operations are divested from foreign ownership. TikTok, owned by the Chinese company ByteDance, was specifically named under this legislation.
ByteDance challenged this act, arguing that it violated the First and Fifth Amendments of the U.S. Constitution which granted freedom of the press and protection of property. The company claimed the Act infringed on free speech and process rights. However, the court upheld the law in a decision issued on Jan 17, just days before the extended divestment deadline. The Court ruled that the Act satisfied intermediate scrutiny, using national security concerns as a reason.
It seemed the ban was imminent, but President Trump delayed the enforcement of the ban on his first day back in office. He signed an executive order extending the divestment deadline by 75 days. This temporarily allowed TikTok to continue operations in the U.S. after the app had briefly gone offline on Jan 19. Trump stated that the extended deadline was necessary to keep an orderly resolution that dealt with national security concerns while avoiding an abrupt shutdown of a platform with millions of users, influencers, entrepreneurs and celebrities.
As of right now, the fate of TikTok is still uncertain, despite the approaching deadline. Moreover, various large corporations are proposing deals for divestment. Companies like Microsoft or Oracle and wealthy businessowners like Elon Musk are all seeking deals with ByteDance. Facing the growing pressure on multiple fronts, TikTok’s future is hard to predict.
