Appeals court upholds nationwide TikTok ban set for January

A federal appeals court on Friday rejected TikTok's bid to overturn a law banning the platform unless the company finds a new owner. The defeat moves the app closer to a U.S. ban, which is set to take effect on Jan. 19, 2025.

TikTok had challenged the law on First Amendment grounds, arguing that a potential ban would deny American users access to a popular venue for public expression. Attorneys for the company also disputed claims that the app poses a national security risk.

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit ruled against the app, which boasts more than 170 million U.S. users.

The China-based app has faced growing scrutiny from government officials over fears that user data could fall into the possession of the Chinese government and the app could be weaponized by China to spread misinformation. TikTok's parent company, ByteDance, has denied those claims.

In its ruling, the court found merit in security concerns about potential data collection or content manipulation undertaken by the Chinese government, referring to it by its formal name as the People's Republic of China, or PRC.

Each of those two concerns "constitutes an independently compelling national security interest," the court opinion said. The court cited previous instances in which the Chinese government pursued data, noting the government's use of relationships with Chinese-owned businesses.

In a statement to ABC News on Friday, TikTok urged the Supreme Court to overrule the decision.

"The Supreme Court has an established historical record of protecting Americans' right to free speech, and we expect they will do just that on this important constitutional issue. Unfortunately, the TikTok ban was conceived and pushed through based upon inaccurate, flawed and hypothetical information, resulting in outright censorship of the American people," TikTok said.

"The TikTok ban, unless stopped, will silence the voices of over 170 million Americans here in the US and around the world on January 19th, 2025," the company added.

The Supreme Court could determine that the legal challenge holds sufficient merit to delay implementation of the ban as the court weighs the case.

There is little evidence that TikTok has shared U.S. user data with the Chinese government or that the Chinese government has asked the app to do so, cybersecurity experts previously told ABC News.

Attorney General Merrick Garland applauded the federal court ruling on Friday.

"Today's decision is an important step in blocking the Chinese government from weaponizing TikTok to collect sensitive information about millions of Americans, to covertly manipulate the content delivered to American audiences, and to undermine our national security," Garland said in a statement.

President-elect Donald Trump has voiced opposition to a potential ban of TikTok. The president is expected to try to stop the ban of TikTok after he takes office, The Washington Post reported last month, citing people familiar with his views on the matter.

The most straightforward way to reverse the policy would be a repeal of the law that enacted the ban in the first place, experts previously told ABC News.

A repeal would require passage in both houses of Congress, landing the measure on Trump's desk for his signature.

Trump may encounter difficulty gaining support for repeal of the measure among lawmakers, however.

Congress voted in favor of the ban earlier this year. In the House of Representatives, the ban passed by an overwhelming margin of 352-65. In the Senate, 79 members voted in favor of the measure, while 18 opposed and 3 abstained.

Instead of repealing the law or counting on court intervention, Trump could try to prevent the Justice Department from enforcing the measure, experts previously said.

The law orders distributors like Apple and Google to stop offering the social media platform in their app stores, and it requires cloud service providers like Oracle to withhold the infrastructure necessary for TikTok to operate.

In theory, Trump's Justice Department could opt against enforcement of the law, reassuring the likes of Apple and Oracle that the companies would not face prosecution in the event of a violation.

If Trump opts against enforcement, the move could still prove insufficient. Companies like Apple and Oracle may decide to comply with the ban anyway, since they could face legal risk if the Trump administration reverses its approach, experts said.

Finally, Trump could try to find a U.S. buyer for TikTok, allowing the platform to avoid a ban. This approach may appeal to Trump's self-image as a business dealmaker, but time is running short for such a significant transaction and TikTok has shown little appetite for it, experts said.

The law allows for a 90-day extension of the deadline for a TikTok sale, as long as the company is advancing toward an agreement. Under such a scenario, the deadline would move back to April, providing Trump with additional time.