UPDATE – FEBRUARY 2026:
The U.S. Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act on January 17, 2025. TikTok’s future hinged on a potential divestiture. Since then, several pivotal events have reshaped the outcome.
President Trump signed an order approving a framework that allows TikTok to remain in the U.S. under new American-led ownership. TikTok’s U.S. operations will move to a joint venture majority-owned by American investors. ByteDance retains less than 20 percent.
The joint venture deal progressed through negotiations extended to December 16, 2025. These negotiations involved U.S. investors like Oracle, Silver Lake, Andreessen Horowitz, and Abu Dhabi-based MGX. On December 18, 2025, TikTok signed a memorandum formalizing the structure. This memorandum created a new U.S.-based entity called TikTok USDS Joint Venture LLC. Under this structure, American and global investors hold 50% ownership (Oracle, Silver Lake, and MGX each at around 15%). ByteDance affiliates own 30.1%, and ByteDance itself retains 19.9%. Therefore, no foreign adversary maintains control under the law.
The transaction officially closed on January 22, 2026, ending the ban threat and restoring full operational stability for TikTok’s 200 million U.S. monthly users. The new entity manages U.S. user data on American cloud systems (via Oracle). It oversees algorithms retrained with U.S. data. Furthermore, it enforces content moderation under a seven-member board majority-led by Americans, including new CEO Adam Presser (former TikTok head of trust and safety).
ORIGINAL NEWS STORY:
Supreme Court Upholds TikTok Ban Under New U.S. National Security Law
In a pivotal decision, the U.S. Supreme Court has upheld the Protecting Americans from Foreign Adversary Controlled Applications Act, effectively banning TikTok from operating in the United States unless its parent company, ByteDance Ltd., undergoes a divestiture severing ties with the Chinese government. The ruling, issued on January 17, 2025, addressed First Amendment challenges raised by TikTok and a group of American users and content creators.
The Act, enacted in 2024, prohibits entities from providing services to distribute, maintain, or update applications deemed “foreign adversary controlled.” It specifically targets ByteDance Ltd., citing national security concerns over data collection practices and the potential for covert content manipulation by the Chinese government.
National Security Emphasis
In its decision, the Court emphasized the substantial national security threat posed by TikTok’s data collection practices. The platform, which boasts over 170 million U.S. users, collects extensive personal information, including age, location, internet activity, and even behavioral data like keystroke patterns. The government argued that this data could be accessed and exploited by the Chinese government for surveillance, espionage, or influence operations under Chinese laws compelling companies to cooperate with state intelligence.
The Court highlighted Congress’s findings, which linked TikTok’s operations to risks of tracking federal employees, gathering personal data for potential blackmail, and engaging in corporate espionage. These findings formed the basis of the Act’s restrictions, which take effect on January 19, 2025, unless ByteDance completes a “qualified divestiture” that eliminates Chinese control.
TikTok and its users contended that the Act infringes on First Amendment rights, arguing that banning the platform would stifle free expression, association, and access to information. Justice Sotomayor, concurring in part, acknowledged TikTok’s role as a unique medium for speech but emphasized that the First Amendment does not shield foreign-controlled entities from regulations addressing critical national security threats.
More Insights into the Ruling
The Court applied intermediate scrutiny, concluding that the Act is narrowly tailored to achieve the government’s compelling interest in safeguarding national security. Unlike an outright ban, the law permits TikTok to continue operating if ByteDance divests its U.S. operations, ensuring compliance with stringent data protection measures.
The ruling underscores the U.S. government’s growing focus on regulating foreign technology firms to mitigate security risks. It also highlights the tension between safeguarding civil liberties and addressing emerging threats in an increasingly digital and interconnected world.
While proponents of the Act argue that it sets a necessary precedent for protecting Americans from foreign influence, critics warn of potential overreach and unintended consequences for innovation and free speech.
While the Biden administration secured the ruling, it has deferred enforcement of the law to President-elect Donald Trump, who has signaled openness to negotiating a deal that could preserve the platform’s availability under new ownership.
President-Elect’s Remarks
President Trump’s remarks following the ruling underscore his pivotal role in determining TikTok’s fate, as he expressed a willingness to engage with Chinese President Xi Jinping and explore executive action to delay or override the ban. Meanwhile, TikTok has garnered bipartisan support in Congress, with Senate Minority Leader Chuck Schumer calling for a postponement of the deadline. The platform’s uncertain future has also drawn interest from potential buyers, including billionaire Frank McCourt’s Project Liberty.
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