DOJ asks court to reject TikTok's emergency bid aimed at delaying law that would ban app
Published On Dec 12, 2024, 3:01 AM
The Department of Justice (DOJ) is urging a U.S. appeals court to reject TikTok's request to delay a law that mandates the app's Chinese parent company, ByteDance, either divest from the platform by January 19, 2025, or face a ban in the U.S. The DOJ argues that while the ban wouldn't immediately stop current users from using TikTok, it would ultimately render the app 'unworkable.' There is significant concern about potential security risks from the Chinese government overseeing the platform. TikTok is contesting the law and has declared intentions to appeal the decision.
Stock Forecasts
META
Positive
Should the law proceed without delay, it would significantly undermine TikTok’s user base and business viability in the U.S., likely leading to its eventual decline. Investors in companies closely tied to TikTok, including ad agencies and tech firms dependent on TikTok advertising, may face negative consequences. Furthermore, opportunities may arise for competitors that could capture TikTok's market share.
SNAP
Positive
As TikTok faces potential operational disruptions, companies like Meta and Snap could see increased traffic and advertising revenue as they stand to gain from TikTok's downfall. These companies have already been recovering from past declines, and a shift in user attention could further boost their growth trajectory.
Related News
Australia to force tech giants to keep paying for news
Dec 12, 2024, 12:45 AM
The long-awaited decision follows a standoff with Meta, and succeeds a world-first law from 2021.
Facebook, Instagram and Whatsapp down in mass Meta outage
Dec 11, 2024, 3:07 PM
Over 22,000 people reported issues with Facebook this evening and over 18,000 struggled to use WhatsApp, according to Downdetector.
FTC's Lina Khan isn't letting up on Big Tech even with her future in doubt
Dec 10, 2024, 4:00 AM
Lina Khan’s time may be running out as boss of the Federal Trade Commission, but she is not going quietly.