US businesses may lose $1 billion in just 30 days. Do you know how?
Short video App TikTok is working on all legal aspects to stop a potential ban set to take effect the day before Donald Trump assumes office in January.
On Monday, the platform filed an emergency motion requesting a temporary injunction against a US law requiring its parent company, ByteDance, to sell TikTok by January 19 or face a nationwide ban due to national security concerns.
TikTok plans to challenge the law in the Supreme Court, arguing it violates the First Amendment.
The company urged the court to delay enforcement of the law, giving SCOTUS time to evaluate its constitutionality.
TikTok also highlighted that Trump could render the case moot if he decides to reverse the ban, as hinted during his campaign.
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In its filing, TikTok emphasised the stakes that “TikTok is, at its core, its 170 million American users,” including small businesses and content creators.
According to estimates, a one-month ban could cost small businesses more than $1 billion in revenue, creators $300 million in lost earnings, and TikTok nearly 29% of its advertising revenue.
“Estimates show that small businesses on TikTok would lose more than $1 billion in revenue, and creators would suffer almost $300 million in lost earnings in just one month unless the TikTok ban is halted,” said a spokesperson.
TikTok argued that a temporary injunction would protect its users and businesses from severe harm while posing no immediate threat to US national security.
The platform pointed out that the government itself delayed the law’s enforcement by setting a 270-day deadline.
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“Unless this Court grants interim relief, the Supreme Court will be forced to resolve an emergency injunction application on this weighty constitutional question in mere weeks (and over the holidays, no less),” TikTok argues.
The US Justice Department, however, is pushing back, asserting that TikTok’s constitutional claims have already been rejected and urging the court to swiftly deny the injunction to allow the Supreme Court ample time for consideration.
“An expedient decision by this Court denying petitioners’ motions, without awaiting the government’s response, would be appropriate to maximise the time available for the Supreme Court’s consideration of petitioners’ submissions,” says a letter.
TikTok has requested a decision by December 16, with the government agreeing to respond by Wednesday.
If the injunction is rejected, TikTok plans to seek emergency relief directly from the Supreme Court.
The stakes are high, not just for TikTok’s survival in the US but also for its global user base.
The platform warns that a U.S. ban could disrupt service for millions of users worldwide, with no guarantee they would return even if the ban is eventually overturned.
An injunction, if granted, would offer a temporary reprieve for TikTok and its users.
However, TikTok’s best chance of survival may lie in Trump’s potential decision to halt enforcement of the law.
TikTok emphasised that resolving the issue through the courts only to have the new administration reverse course would be counterproductive.
