US Law Mandating TikTok Divestiture: The Ongoing Saga
Author Name: Nahyan | uslawguide
Last Updated: July 3, 2025
The presence of TikTok, the immensely popular short-form video application, in the United States has been a subject of intense debate for years, primarily driven by national security concerns related to its ownership by Chinese technology giant ByteDance. These concerns culminated in a landmark US law enacted in 2024, aiming to force a change in TikTok’s ownership or effectively ban the platform in the U.S. For a broader legal context on digital security concerns, visit:Here.
The Core of the US Law: Protecting Americans from Foreign Adversary Controlled Applications Act (H.R. 7521)
On April 24, 2024, President Joe Biden signed into law the Protecting Americans from Foreign Adversary Controlled Applications Act, initially introduced as H.R. 7521 and later incorporated into a broader foreign aid package (H.R. 815, 21st Century Peace through Strength Act). This US law is the most significant legislative effort to address the perceived national security risks posed by TikTok.
Key Provisions of the Law:
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Mandatory Divestiture: The central provision requires ByteDance Ltd. to divest its ownership of TikTok’s U.S. operations. The law explicitly names ByteDance and TikTok as “foreign adversary controlled applications.”
Timeline for Divestiture: The original law provided ByteDance with 270 days (approximately nine months) from the date of enactment to complete a qualified divestiture. This set an initial deadline of January 19, 2025.
Presidential Extension: The law also grants the President the authority to extend the divestiture period by an additional 90 days if significant progress towards a sale is demonstrated.
Current Status (as of July 2025): The deadline has been subject to executive orders. On January 20, 2025, following his inauguration, President Donald Trump signed an executive order delaying the enforcement of the Act for 75 days, shifting the effective divestiture deadline to April 5, 2025. More recently, in June 2025, President Trump extended the deadline by another 90 days, pushing it to September 17, 2025.
Consequences of Non-Divestiture: If ByteDance fails to divest TikTok’s U.S. operations within the specified timeframe, the law makes it unlawful for entities within the U.S. to:
Distribute, maintain, or update TikTok (or any successor application) via an online mobile application store (e.g., Apple App Store, Google Play Store).
Provide internet hosting services for TikTok for users within the U.S.
Scope: The law is not exclusively limited to TikTok. It establishes a framework for the President to designate other social media applications as foreign adversary controlled if they meet certain criteria (e.g., over 1 million active users and controlled by a foreign adversary like China, Russia, Iran, or North Korea) and pose a significant threat to U.S. national security. For details on the full legislative text, visit:Here.
User Data Portability: The law also requires a covered application to provide users with all available account data (including posts, photos, and videos) upon request before any prohibition takes effect, facilitating migration to other platforms.
Enforcement and Penalties: The Department of Justice (DOJ) is authorized to investigate and enforce violations. Entities found in violation are subject to civil penalties, calculated as $5,000 multiplied by the number of users accessing or updating the banned application.
Background and Prior Attempts:
Concerns about TikTok’s data security and potential influence operations have simmered for years:
- Trump Administration Executive Orders (2020): President Trump issued executive orders seeking to ban TikTok, citing national security concerns. These orders were challenged in court and ultimately blocked by federal judges.
- CFIUS Review: The Committee on Foreign Investment in the United States (CFIUS) had been reviewing ByteDance’s acquisition of Musical.ly (which became TikTok) and pushing for a divestiture deal.
- No TikTok on Government Devices Act (2022): This law, signed by President Biden, prohibited the use of TikTok on federal government devices, solidifying initial concerns.
The Basis for the Ban: National Security Concerns
The core justification for this US law from Congress and the Executive Branch centers on national security:
- Data Security: Concerns that the Chinese government could compel ByteDance to share sensitive data on U.S. users, including personal information, Browse history, and location data, under China’s National Intelligence Law.
- Propaganda and Influence Operations: Fears that the Chinese Communist Party (CCP) could use TikTok’s recommendation algorithm to censor content, spread propaganda, or influence American public opinion and political discourse, particularly regarding elections.
- Espionage: Allegations from U.S. intelligence officials that TikTok could be used for intelligence gathering or surveillance activities.
TikTok and ByteDance have consistently denied these allegations, asserting that U.S. user data is stored in the U.S. and Singapore, largely managed by U.S. employees as part of “Project Texas,” and that they would never share data with the Chinese government.
Legal Challenges and Constitutional Arguments
Immediately following the law’s enactment, TikTok, ByteDance, and a group of TikTok content creators filed lawsuits challenging its constitutionality. The primary legal arguments against the law include:
- First Amendment (Freedom of Speech): Plaintiffs argue that the law violates the free speech rights of TikTok and its 170 million U.S. users, contending that a ban would restrict their ability to express themselves and access information on a unique communication platform.
- Government’s Counter-Argument: The government argues the law is not a restriction on speech itself but a regulation of corporate ownership based on national security risks. They contend that the law offers a path for TikTok to continue operating under different ownership, thus preserving users’ speech.
- Fifth Amendment (Due Process and Takings Clause): Arguments have been made that the law unfairly targets a specific company (a “bill of attainder” argument) and amounts to an uncompensated taking of private property.
- Bill of Attainder Clause (Article I, Section 9): This clause prohibits legislative acts that target specific individuals or groups for punishment without a trial. TikTok argues the law unfairly singles them out.
Current Legal Status:
- Lower Court Rulings: In December 2024, the U.S. Court of Appeals for the District of Columbia Circuit upheld the law, siding with the government’s national security arguments and largely dismissing the First Amendment claims, interpreting the law as a content-neutral regulation of ownership rather than speech.
- Supreme Court Review: In January 2025, the U.S. Supreme Court heard an expedited appeal. On January 17, 2025, the Supreme Court upheld the constitutionality of the Act, unanimously rejecting TikTok’s First Amendment claims. The Court’s decision was a significant victory for the U.S. government, validating its approach to regulating platforms based on foreign adversary ownership and national security concerns.
Potential Outcomes and Future of TikTok in the US
Despite the Supreme Court’s ruling, the situation remains fluid due to the presidential executive orders extending the divestiture deadline. The future of TikTok in the U.S. hinges on several potential outcomes:
- Divestiture: ByteDance could find a U.S.-approved buyer for TikTok’s U.S. operations. However, this is complicated by the sheer size of the platform, the need for approval from both the U.S. and Chinese governments (China has indicated it would oppose a forced sale of the underlying algorithm), and the ongoing legal battles.
- Continued Delays/Negotiations: The current presidential administration might seek further delays or engage in negotiations with ByteDance, potentially exploring alternative mitigation agreements short of a full sale, although the enacted law has a clear divestiture requirement.
- Effective Ban: If a divestiture does not occur by the current deadline (September 17, 2025, unless further extended), and no further legal relief is granted, TikTok would face an effective ban in the U.S., meaning it could no longer be offered via app stores or receive internet hosting services in the country. This would make it increasingly difficult, if not impossible, for new users to download the app and for existing users to receive updates or stable service.
- Political Shifts: The upcoming U.S. presidential election could also influence the approach to TikTok, depending on the administration’s priorities and stance on technology and China.
Conclusion
The US law banning TikTok, formally known as the Protecting Americans from Foreign Adversary Controlled Applications Act, represents a landmark effort by the U.S. government to address perceived national security threats posed by foreign-owned social media platforms. While the law has been upheld by the Supreme Court, its ultimate impact on TikTok’s operations in the U.S. depends on ByteDance’s willingness and ability to divest, ongoing executive actions, and the dynamic geopolitical landscape. The debate highlights the complex challenges of balancing national security interests with technological innovation and individual freedoms in the digital age.
Frequently Asked Questions About US Law Banning TikTok
Q: Is TikTok officially banned in the US right now (July 2025)? A: No, not a full operational ban for users. A US law exists that mandates divestiture or a ban on app store distribution and web hosting if no sale occurs. The original ban was set for January 19, 2025, but it has been subject to executive orders extending the deadline, currently to September 17, 2025. TikTok is still available to users in the U.S. at this time.
Q: What is H.R. 7521? A: H.R. 7521 was the initial bill, later incorporated into a larger package as the Protecting Americans from Foreign Adversary Controlled Applications Act. It’s the US law that requires ByteDance to divest TikTok’s U.S. operations or face restrictions on its availability in the United States.
Q: Why does the US government want to ban TikTok? A: The US government cites national security concerns, primarily fears that the Chinese government could force ByteDance to provide sensitive data on U.S. users or use TikTok’s algorithm to influence public opinion or spread propaganda.
Q: Did the Supreme Court rule on the TikTok ban? A: Yes, in January 2025, the U.S. Supreme Court upheld the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act, rejecting TikTok’s First Amendment claims. This affirmed the law’s legal standing.
Q: What is “Project Texas”? A: “Project Texas” is TikTok’s internal initiative aimed at addressing U.S. national security concerns. It involved creating a U.S.-based entity, storing U.S. user data on Oracle servers in the U.S., and allowing third-party oversight of its algorithms. However, U.S. officials stated that Project Texas did not sufficiently mitigate their concerns.
Responsible Disclaimer: This article provides general information about the US law concerning TikTok and related developments. The situation is complex and subject to ongoing legal challenges, executive actions, and potential future legislative changes. This information is not intended as legal advice. For the most current and specific details, please refer to official government sources, court documents, and consult with legal professionals.