TikTok has promised a court battle over a new law that threatens to ban it in the US – with the app’s boss saying “we aren’t going anywhere”.

President Joe Biden approved the law that states the platform will be blocked if its Chinese owner, ByteDance, does not sell it within nine months.

US politicians are worried the company could share user data with the Chinese government, despite repeated assurances from TikTok that it would not.

The bill was approved by the Senate on Tuesday as part of a $95bn (£76.2bn) aid package for Ukraine and Israel.

Mr Biden signed it off early on Wednesday – with TikTok’s boss swiftly hitting back in a video on the platform.

“Rest assured, we aren’t going anywhere. The facts and the Constitution are on our side and we expect to prevail again,” said chief executive Shou Zi Chew.

A statement by the company added: “This unconstitutional law is a TikTok ban, and we will challenge it in court.

“We believe the facts and the law are clearly on our side, and we will ultimately prevail.”

The legal challenge could argue a ban would deprive the app’s 170 million US users of their First Amendment rights to freedom of speech.

The law could also face opposition from TikTok creators who rely on it for their income, while China has previously said it would oppose a forced sale.

Why is TikTok facing a US ban?

Arthi Nachiappan

Technology correspondent

Attracting around 170 million US users in seven years, TikTok has taken America by storm. But there have long been concerns in Washington about the China-based ownership of the social media platform.

Beijing-based tech firm ByteDance originally launched the Chinese version of the app called Douyin, meaning “shaking sound”, in 2016. They followed up with an international version – TikTok – in November 2017.

Since then, the platform has had a meteoric rise. Fuelled by its popularity among Gen-Z, it has become an influential social media platform. But it has become a target for both sides of the political spectrum in Washington, as well as in other Western countries, due to fears over the use of user data.

Politicians and officials in the US have expressed concerns that Chinese authorities could force ByteDance to hand over US user data. TikTok has said it has never done that and would not do so if asked. There are also fears over influence on Americans by suppressing or promoting certain content on TikTok.

The use of TikTok by the federal government’s nearly four million employees on devices owned by its agencies is already banned in the US, with limited exceptions for law enforcement, national security and security research purposes. A similar ban is also in place for civil servants in the UK.

India was the first country to ban TikTok in 2020 following a violent clash on the India-China border that left at least 20 Indian soldiers dead. Interestingly, TikTok is also not available in app stores in China – where the internet is tightly controlled by the state – and Douyin is used instead.

Last month, TikTok’s chief executive appealed to US users directly to stop the bill forcing the app’s sale and accused lawmakers in the US of attempting to shut down the platform. In a video posted on the platform, Shou Zi Chew told users the bill “will lead to a ban of TikTok in the United States”, adding: “Even the bill’s sponsors admit that’s their goal.”

The use of TikTok by the federal government’s nearly four million employees on devices owned by its agencies is already banned in the US.

However, there are limited exceptions for law enforcement, national security and security research purposes.

Read more from Sky News:
What does bill mean – and could same happen in the UK?
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TikTok CEO appeals to users to oppose potential US ban

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Senate commerce committee chair Maria Cantwell said the move to force TikTok’s sale was not aimed at “punishing” ByteDance, TikTok, or other companies.

“Congress is acting to prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and our US government personnel,” she said.

Shares in Meta, the owner of Facebook, WhatsApp and Instagram, have fallen sharply after the company revealed it had raised its cost forecast for the current year.

Investors sent the stock 10% lower in after-hours trading in New York when Meta‘s first-quarter results showed further bills were expected to fund new artificial intelligence (AI) products and the infrastructure behind them.

The company, founded and run by Mark Zuckerberg, said it now forecast 2024 capital expenditure in the range of $35bn-$40bn.

That was up from a previous range of $30bn-$37bn.

It also raised its total expenses forecast to $96bn-$99bn – a rise of $2bn in the low-range mark.

The shifts, while hardly huge in scale, nevertheless threaten to reopen old wounds following a 2022 row with investors over Zuckerberg’s bets on technology.

Meta has been updating its ad-buying products with AI tools and short video formats to boost revenue growth, while also introducing AI features like a chat assistant to drive engagement on its social media properties.

The other main key metrics reported by the company beat financial market expectations, according to LSEG data.

Total revenue rose 27% to $36.5bn and Meta forecast a slight improvement in the current March-June quarter.

However, its low-range sum came in below market forecasts and analysts said that the company’s view had contributed to the share price sell-off.

A 10% reduction in the share price equated to lost market value of $125bn (£100.3bn) they said, as the values continued to fluctuate.

The stock remains around 30% up on the year to date.

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Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said of the reaction: “Meta’s substantial investment in AI has the ability to hugely improve engagement with its platforms, and therefore the amount marketers are prepared to pay for ad space.

“The group has indeed surpassed expectations in a time when digital advertising uncertainty remains rife.

“Over 50 countries are due… elections this year, which hugely increases uncertainty, and digital spending tends to move down when risks increase.

“This speaks to Meta’s enormous scale and importance to modern-day marketers. Its fortunes are probably also being bolstered by TikTok’s uncertain future in the US. One potential outcome from all this turmoil could well see TikTok added to the Meta family.”

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She added: “For all Meta’s bold AI plans, it can’t afford to take its eye off the nucleus of the business – its core advertising activities.

“That doesn’t mean ignoring AI, but it does mean that spending needs to be targeted and in-line with a clear strategic view.”

The US Senate has voted in favour of legislation that could ban TikTok in the country – if its Chinese owners refuse to sell. 

The bill passed by a wide margin in the Senate on 23 April after being voted through in the House of Representatives.

But does the ban actually mean an end to TikTok in the US? How would it work – and could something similar happen in the UK?

What does the bill mean?

The bill gives Chinese company ByteDance nine months to sell its stake in the US version of TikTok – with the possibility of a three-month extension to finalise a deal – or the app will be blocked.

White House national security adviser Jake Sullivan said the goal is ending Chinese ownership – not banning TikTok.

But it is unclear if China would approve any sale or if it could go ahead within the timeframe.

There’s also a question mark over who would buy it – although if the legislation is passed, it could make the sale price cheaper.

“Somebody would have to actually be ready to shell out the large amount of money that this product and system is worth,” said Stanford University researcher Graham Webster, who studies Chinese technology policy and US-China relations.

“But even if somebody has deep enough pockets and is ready to go into negotiating to purchase, this sort of matchmaking on acquisitions is not quick.”

What would it mean for users?

The app is used by about 170 million Americans.

If it is banned, it would be removed from app stores including Apple and Google, and blocked on web hosting services.

This would remain in place until ByteDance sold TikTok.

However, it is likely users could still access the app using virtual private networks (VPNs) that bypass restrictions, according to telecom analyst Roger Entner.

Why is the US worried about TikTok?

Both the FBI and Federal Communications Commission have warned that TikTok owner ByteDance could share user data, such as browsing history, location and biometric identifiers, with China’s authoritarian government.

TikTok said it has never done that and would not do so if asked.

The worry stems from a set of Chinese national security laws that compel organisations to help with intelligence gathering.

The US director of national intelligence has also said she “cannot rule out” that China would use TikTok to influence US elections.

Senate Commerce Committee chair Maria Cantwell said the move to force TikTok’s sale was not aimed at “punishing” ByteDance, TikTok, or other companies.

“Congress is acting to prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and our US government personnel,” she said.

What happens now?

President Joe Biden will now sign the legislation.

He had already committed to signing the bill if it passed, despite his 2024 campaign officially joining TikTok in February.

However, the company will likely launch a legal challenge against the bill, arguing it will deprive the app’s 170 million US users of their First Amendment rights, which protect freedom of speech.

The company will need to file any legal challenges within 165 days of the bill being signed by the president.

It could also face opposition from TikTok’s content creators who rely on the platform for their income, while China has previously said it would oppose a forced sale of the popular app.

In November, a US judge blocked a Montana state ban on TikTok use after the company sued.

The passage of the bill could also change depending on the outcome of the November election.

Despite Donald Trump vowing to ban the app in 2020 on national security grounds – with his administration brokering a deal that would have had US corporations Oracle and Walmart take a large stake in TikTok – the presidential hopeful no longer supports a ban.

Read more from Sky News:
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Could something similar happen in the UK?

TikTok has not faced a nationwide ban in the UK, but in March 2023 it was banned from government devices.

This came after a review found there “could” be a risk to how data and information is used by the app.

Oliver Dowden said while TikTok use was “limited”, banning it was good cyber “hygiene”.

However, he stressed the government was not advising people against using TikTok in a personal capacity.

He told MPs: “This ban applies to government corporate devices within ministerial and non-ministerial departments, but it will not extend to personal devices for government employees or ministers or the general public.

“That is because, as I have outlined, this is a proportionate move based on a specific risk with government devices.”

The cabinet office said the move was taken because TikTok users are required to hand over data including contacts, user content and geolocation data.

What has TikTok said about the US bill?

TikTok urged senators to listen to their constituents before taking any action on the bill, which it said amounted to a ban.

A TikTok spokesperson said: “This process was secret and the bill was jammed through for one reason: It’s a ban.

“We are hopeful that the Senate will consider the facts, listen to their constituents, and realise the impact on the economy, seven million small businesses, and the 170 million Americans who use our service.”

TikTok has also pointed out that there is no Chinese state ownership within ByteDance or representation on its board.

Crucially, it says it is incorporated outside of China – a fact that seeks to distance TikTok and ByteDance from coming under the influence of the Chinese intelligence law on information-sharing.