Legal Battle Over TikTok Reaches Supreme Court with Shutdown Looming; Famous Sharks Look to Purchase

WASHINTGON, DC — The U.S. Supreme Court convened on January 10, 2025, to deliberate on the constitutionality of the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), a law mandating the sale or shutdown of TikTok by January 19 due to national security concerns. The government argues that TikTok's Chinese parent company, ByteDance, poses a potential threat through data collection and covert content manipulation. TikTok contends that the law infringes upon First Amendment rights.

During the session, justices expressed skepticism toward TikTok's free speech defense. Chief Justice John Roberts highlighted the risk of data access by the Chinese government, stating, "It's not about the content but about who controls the platform." Justice Elena Kagan noted, "When a foreign adversary has control... it could weaponize that platform to harm United States interests."

Solicitor General Elizabeth Prelogar, representing the government, emphasized the necessity of divestment to mitigate threats from Chinese government control over user data. She stated, "China is a foreign adversary nation that looks for every opportunity it has to weaken the United States."

In response, TikTok's attorney, Noel Francisco, acknowledged the government's concerns but argued that the law's broad approach unjustly suppresses free speech. He asserted, "Restricting speech has to be the last resort, not the first one."

Amid these legal proceedings, investor Kevin O'Leary, known from "Shark Tank," has partnered with businessman Frank McCourt to propose a $20 billion bid for TikTok's U.S. operations. O'Leary stated, "We're willing to pay up to $20 billion," emphasizing the deal's focus on protecting the privacy of 170 million American users.

The Supreme Court's decision is anticipated before the January 19 deadline. If the law is upheld and ByteDance does not divest, TikTok faces a U.S. shutdown. The outcome holds significant implications for the intersection of national security, free speech, and foreign ownership of digital platforms.