TikTok says banning it would cost U.S. small businesses, creators $1.3 billion in first month

The U.S. Supreme Court announced on Wednesday that it will hear a challenge from TikTok and its China-based parent company, ByteDance, to block a law requiring the sale of the short-video app by Jan. 19 or face a nationwide ban on national security grounds.

The justices did not immediately act on an emergency request by TikTok, ByteDance, and several TikTok users to halt the impending ban. Instead, they scheduled arguments for Jan. 10 to review the case.

The challengers are appealing a lower court decision that upheld the law. TikTok, which is used by roughly 170 million Americans, faces growing scrutiny over data security and content manipulation concerns.

Congress passed the legislation in April, citing TikTok's potential threat as a Chinese-owned platform with access to vast amounts of U.S. user data, including private messages and locations, as well as its alleged ability to influence content seen by American users. The Justice Department called TikTok “a national-security threat of immense depth and scale.” TikTok, however, maintains that it poses no immediate risk to U.S. security.

TikTok and ByteDance contend the law violates the First Amendment's free speech protections. They asked the Supreme Court on Dec. 16 to pause its implementation, emphasizing the harm a ban would cause. TikTok said it was encouraged by the court's decision to take up the case.

"We believe the court will find the TikTok ban unconstitutional, ensuring that over 170 million Americans can continue to exercise their free speech rights on our platform," TikTok said in a statement.

The companies argue that even a one-month shutdown would cost TikTok about a third of its U.S. user base, severely damaging its ability to attract advertisers, content creators, and employees.

On Dec. 6, the U.S. Court of Appeals for the District of Columbia Circuit dismissed TikTok and ByteDance's First Amendment arguments. In their Supreme Court filing, the companies argued that the First Amendment protects Americans’ right to decide for themselves whether to use TikTok, despite any alleged risks.

Senate Republican Leader Mitch McConnell, in a Supreme Court brief filed Wednesday, urged the justices to deny any delay, likening TikTok to a dangerous criminal.

A ban would also significantly reduce TikTok’s value to ByteDance and its investors while harming businesses reliant on the platform for sales.

President-elect Donald Trump, who previously attempted to ban TikTok in 2020, has reversed his stance. During this year’s campaign, Trump expressed support for saving the app, stating on Dec. 16, “I have a warm spot in my heart for TikTok,” and pledged to “take a look” at the issue.

Trump is set to take office on Jan. 20, one day after the deadline for TikTok to comply with the law.