ByteDance, the parent company of short video app TikTok, may get help from the Supreme Court to stop a law that would force its sale or ban it in the U.S. The Supreme Court has agreed to hear arguments from TikTok on Jan. 10, just nine days before the new law goes into effect.
This is a follow-up to a lower court ruling that sided with the new law over TikTok. One thing that’s worth noting is the Supreme Court hasn’t halted the potential ban or sale of TikTok. However, it may choose to after the Jan. 10 meeting if the social media app makes a compelling argument.
How Will TikTok Defend Itself?
ByteDance has tried different angles to protect TikTok from this new law. That includes an appeal to the free speech of its 170 million American users, which was shot down by the lower court. Instead, the court highlighted the potential security threat TikTok presents to U.S. users if their data was sent overseas.
Another argument against banning the video-sharing app is that it would harm the businesses of the various creators on the platform. This could also damage the sales of brands and retailers tied to these creators. Yet again, the lower court wasn’t swayed by this point.
What Would a TikTok Ban Mean for U.S. Stocks?
TikTok’s popularity has been a thorn in the side of U.S. social media and video-sharing companies. If the ban goes into effect, it could benefit those directly competing against it. Meta Platform’s (META) Facebook and Instagram, as well as Alphabet’s (GOOGL) YouTube, would likely profit from the Chinese social media app’s ban. Other social media companies that could gain from a TikTok ban are available in the comparison chart below.
