Supreme Court upholds TikTok ban, but Trump might offer lifeline
Jaap Arriens | Nurphoto | Getty Images
The Supreme Court on Friday upheld the law requiring China-based ByteDance to divest its ownership of TikTok by Sunday or face an effective ban of the popular social video app in the U.S.
ByteDance has so far refused to sell TikTok, meaning many U.S. users could lose access to the app this weekend. The app may still work for those who already have TikTok on their phones, although ByteDance has also threatened to shut the app down.
In a unanimous decision, the Supreme Court sided with the Biden administration, upholding the Protecting Americans from Foreign Adversary Controlled Applications Act, which President Joe Biden signed in April.
“There is no doubt that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community,” the Supreme Court’s opinion said. “But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary.”
Supreme Court Justices Sonia Sotomayor and Neil Gorsuch wrote concurrences.
TikTok’s fate in the U.S. now lies in the hands of President-elect Donald Trump, who originally favored a TikTok ban during his first administration, but has since flip-flopped on the matter. In December, Trump asked the Supreme Court to pause the law’s implementation and allow his administration “the opportunity to pursue a political resolution of the questions at issue in the case.”
In a post on his social media app Truth Social, Trump wrote that the decision was expected “and everyone must respect it.”
“My decision on TikTok will be made in the not too distant future, but I must have time to review the situation. Stay tuned!” Trump wrote.
Trump began to speak more favorably of TikTok after he met in February with billionaire Republican megadonor Jeff Yass. Yass is a major ByteDance investor who also owns a stake in the owner of Truth Social.
Trump will be inaugurated Monday, one day after the TikTok deadline for a sale. TikTok CEO Shou Chew is one of several tech leaders expected to be in attendance, seated on the dais.
In a video posted on TikTok, Chew thanked Trump “for his commitment to work with us to find a solution that keeps TikTok available” in the U.S. He said use of TikTok is a First Amendment right, adding that over 7 million American businesses use it to make money and find customers.
“Rest assured, we will do everything in our power to ensure our platform thrives as your online home for limitless creativity and discovery as well as a source of inspiration and joy for years to come,” he said.
The nation’s highest court said in the opinion that while “data collection and analysis is a common practice in this digital age,” the sheer size of TikTok and its “susceptibility to foreign adversary control, together with the vast swaths of sensitive data the platform collects” poses a national security concern.
Under the terms of the law, third-party internet service providers such as Apple and Google will be penalized for supporting a ByteDance-owned TikTok after the Jan. 19 deadline.
If service providers and app store owners comply, consumers will be unable to install the necessary updates that make the app functional.
Representatives of TikTok did not immediately respond to requests for comment.
Users look for alternatives
White House press secretary Karine Jean-Pierre reiterated Biden’s support for the law in a statement, saying “TikTok should remain available to Americans, but simply under American ownership or other ownership that addresses the national security concerns identified by Congress in developing this law.”
“Given the sheer fact of timing, this Administration recognizes that actions to implement the law simply must fall to the next Administration, which takes office on Monday,” Pierre said.
Attorney General Merrick Garland and Lisa Monaco, his deputy, said in a release that the decision “enables the Justice Department to prevent the Chinese government from weaponizing TikTok to undermine America’s national security.”
Kate Ruane, the director of the Center for Democracy and Technology nonprofit, criticized the ruling, saying in a statement that it “harms the free expression of hundreds of millions of TikTok users in this country and around the world.”
In December, members of the House Select Committee on the Chinese Communist Party sent letters to Apple CEO Tim Cook and Google CEO Sundar Pichai, urging the executives to begin preparing to comply with the law.
Shou Zi Chew, CEO of TikTok, speaks to reporters outside the office of Sen. John Fetterman (D-PA) at the Russell Senate Office Building on March 14, 2024 in Washington, DC.
Anna Moneymaker | Getty Images
On Jan. 10, the Supreme Court heard oral arguments from lawyers representing TikTok, content creators and the U.S. government. TikTok’s lead lawyer, Noel Francisco, argued that the law violates the First Amendment rights of the app’s 170 million American users. U.S. Solicitor General Elizabeth Prelogar argued that the app’s alleged ties to the Chinese government pose a national security threat.
Many TikTok creators have been telling their fans to find them on competing social platforms such as Google’s YouTube and Meta’s Facebook and Instagram, CNBC reported. Additionally, Instagram leaders scheduled meetings after the Jan. 10 Supreme Court hearing to direct workers to prepare for a wave of users if the court upholds the law.
Chinese social media app and TikTok look-alike RedNote rose to the top of Apple’s app store Monday, indicating that TikTok’s millions of users were seeking alternatives.
The Chinese government also weighed a contingency plan that would have X owner Elon Musk acquire TikTok’s U.S. operations as part of several options intended to keep the app from its effective ban in the U.S., Bloomberg News reported Monday.
Should ByteDance decide to sell TikTok to a U.S. company or group of investors, potential buyers may have to pay between $40 billion and $50 billion, according to an estimate by CFRA Research Senior Vice President Angelo Zino.
WATCH: SCOTUS hears TikTok ban case
Reddit CEO Steve Huffman stands on the floor of the New York Stock Exchange (NYSE) after ringing a bell on the floor setting the share price at $47 in its initial public offering (IPO) on March 21, 2024 in New York City.
Spencer Platt | Getty Images News | Getty Images
Reddit shares rose more than 10% on Tuesday, reversing a three-day slump that coincided with a broader decline among technology companies.
Despite Tuesday’s gains, Reddit shares are still roughly 30% below the close on Wednesday.
Reddit’s stock market upswing was likely bolstered by a Loop Capital analyst note published Tuesday that reiterated a buy rating and characterized the company’s shares as “extremely attractive.” The analyst note said that Reddit’s 50% drop on Wall Street in the past month “is excessive,” and that the social media company “has the biggest upside potential relative to Street estimates in our coverage universe.”
The company’s shares dropped more than 15% in February after the company reported weaker-than-expected fourth-quarter user numbers as a result of a Google search change that temporarily hurt its search-derived traffic. Although Reddit said at the time that it had recovered from the algorithmic shift, the user number miss spooked investors.
Reddit’s shares have since spiraled downward along with other tech companies like Apple, Nvidia and Tesla off of concerns related to President Donald Trump‘s tariffs and growing fears of a recession. The seven most valuable tech companies lost more than $750 billion in market value on Monday with Nasdaq experiencing its biggest decline since 2022.
Loop Capital managing director Alan Gould acknowledged in the note that investors are operating in a “risk-off market environment,” but he contended that Reddit “has been one of the top performing stocks over the past year,” aside from its most recent dip.
“RDDT wildly exceeded ours and Street estimates for 2024, which explains why the stock increased almost 7-fold from a $34 IPO price to a peak of $230 in less than a year,” Gould wrote, noting Reddit’s growing revenue and improved advertising tools, among other positive developments.
Reddit’s fourth-quarter sales grew 71% year over year to $428 million, which represents the fastest growth rate for any quarter since 2022.
“In our view, RDDT deserves the revaluation it had experiencing based on the growth it has shown in the recent earnings reports and future projected growth driven by the ability to narrow the ARPU gap, and data licensing possibilities,” Gould wrote.
Waymo self-driving cars with roof-mounted sensor arrays traveling near palm trees and modern buildings along the Embarcadero, San Francisco, California, February 21, 2025.
Smith Collection/gado | Archive Photos | Getty Images
Waymo on Tuesday announced it is expanding its service to include another 27 square miles of coverage around the San Francisco Bay Area.
With the expansion, Waymo will now take passengers around Mountain View, Los Altos, Palo Alto and parts of Sunnyvale, California. The Alphabet-owned company opened its robotaxi service to the general public in San Francisco in June.
Waymo will initially limit the availability of its Silicon Valley service to users of the Waymo One app who are residents with ZIP codes in the area, the company said. Waymo plans to serve more riders across the region over time. The fleet of vehicles that will be in use in the new coverage areas are fully electric Jaguar I-Pace vehicles with Waymo’s fifth generation of self-driving sensors, software and other technology.
“Opening our fully autonomous ride-hailing service in Silicon Valley marks a special milestone in our Bay Area journey,” Waymo product chief Saswat Panigrahi said in a statement. “This is where Waymo began and where we’re headquartered.”
Waymo expanded its San Francisco Bay Area robotaxi service last summer into Daly City, Broadmoor and Colma. Its robotaxis do not yet carry passengers to San Francisco International Airport.
A spokesperson told CNBC that Waymo is in “active discussions with SFO,” and added that the company is “working to connect” Silicon Valley and San Francisco to “provide seamless autonomous rides across more of the Bay Area in the future.”
Waymo also recently launched a commercial robotaxi service in Austin, Texas, just in time for the city’s annual South by Southwest festival.
While would-be competitors including Elon Musk‘s automaker Tesla, and Amazon-owned Zoox, are continuing their own robotaxi testing and development, Waymo has pulled far ahead of self-driving companies in the U.S.
Before Tuesday’s expansion, Waymo said it was serving more than 200,000 paid trips per week across San Francisco, Los Angeles and Phoenix.
Alphabet doesn’t disclose financial results for the autonomous vehicle business, but Waymo is part of its “Other Bets.” That business unit generated $400 million in the fourth quarter of 2024 and incurred operating losses of $1.17 billion, according to the company’s most recent financial filing.
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