Supreme Court Sides Against Tiktok, Upholds U.s. Ban

The Supreme Court ruled Friday that a controversial ban on TikTok can take effect on Sunday, upholding a law that requires TikTok’s China-based parent company, ByteDance, to divest from the social media app or face a ban in the U.S.

The decision comes just three days before President-elect Donald Trump — who had asked justices to delay the deadline so he could negotiate a deal — takes office.

The law, signed in April 2024 by President Joe Biden, gave ByteDance 270 days to divest from the app or face a U.S. ban. The company said divestment was not an option and that the law goes against the First Amendment rights of both the company and TikTok’s 170 million users in the U.S.

The Supreme Court last month agreed to hear TikTok’s challenge to the law and expedited the case to a special session on Jan. 10.

The Hill reported the news first, sharing that justices found that the divest-or-ban law does not violate the First Amendment as ByteDance claims. The Biden administration argued that a national security interest over the app’s ties to China and potential access to data takes precedence over ByteDance’s free-speech claims.

According to NewsNation, The Hill’s sister network, the Biden administration is not planning to enforce the ban with only a few days to go before Trump’s inauguration.

“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.”

Under the terms of the law, third-party internet service providers like Apple and Google will be penalized for supporting the app after the Jan. 19 deadline.

Several people in the financial services industry have commented on the matter.

Gene Griffin, director and senior mortgage adviser for Summit Mortgage Solutions, said that his reaction was to “[keep] business as usual, [and] adapt and pivot to other platforms.”

Madison Sutton, a real estate agent with SERHANT, is also known on TikTok as @TheNYCAgent. Sutton has nearly 100,000 followers on the app where she posts vides about New York real estate and market updates.

“I believe it’s not only my opinion, but many of Gen Z’s, that this was a reckless decision based on ego and ignorance — not fact. … This has portrayed a generational distrust of the leadership that runs this country and I think will have a compounding effect on generations to come in regards to voting,” Sutton told HousingWire.

“TikTok allowed for many things, but a big element was it provided hope,” she added. “It provided an opportunity for those like myself. It single-handedly propelled my career. It gave many people a voice — historically a first for many groups. I don’t think this is something people are going to give up without a fight.”

Holden Andrews, founder of cash buyer Helpful Home Group, said that he found value in the real estate-related information he gathered on TikTok.

“I am torn on this issue because I do believe in free speech and think that banning an application is a hindrance to free speech. I also understand the U.S. government’s concerns of TikTok being used as spyware to collect data on U.S. citizens. With global tensions continuing to escalate, I understand why the U.S. government is making this move to protect their space as a global leader,” Andrews said.

Greg Sher, managing director at NFM Lending, says that TikTok has driven 50,000 leads for the company over the past four years. “There’s a lot at play here,” he shared with HousingWire. “I’d be shocked if there was not something worked out. Trump’s a deal-maker, he doesn’t want to do anything to hurt the economy. This would hurt the economy. There’s going to be a solution, I believe, and if there’s not, people just scurry to the next best platform, and that’ll be that.”

Sher continued, “If I had to bet on it, I would say that eventually, a United States-based company takes over the U.S. portion of [the app]. It’s so critical to our economy now, and to the gig economy in particular, exacerbated by COVID, so I think it’s going to devastate a lot of small businesses. Having said that, I want people to understand that creators are here to stay. And so if Tiktok is the vehicle, it’s not the driver, the creators are the drivers.”

Editor’s note: This is a developing story and will be updated with further information.