'Everyone Must Respect It': Unanimous Supreme Court Decision to Uphold TikTok Ban Was 'Expected,' President-elect Donald Trump Says The Supreme Court upheld the TikTok ban on Friday. Here's what we know and what it means for your business.

By Erin Davis Edited by Sherin Shibu

Photo by Kayla Bartkowski |Getty Images
TikTok educational influencer, Tiffany Cianci livestreams outside the U.S. Supreme Court Building.

The Supreme Court ruled to uphold the TikTok ban on Friday, which is set to go into effect on January 19.

TikTok and its parent company, China-based ByteDance, had asked the Court to pause the deadline imposed by U.S. lawmakers last spring that forces ByteDance to sell the app or face being banned. The hearing on Friday, January 10 lasted for more than two hours.

"The judgment of the United States Court of Appeals for the District of Columbia Circuit is affirmed," reads the report.

Reports earlier this week noted that TikTok is preparing to "go dark" on Sunday. TikTok says creators and small businesses could lose billions.

Justice Amy Coney Barrett noted during the proceedings: "The law doesn't say TikTok has to shut down. It says ByteDance has to divest."

ByteDance has previously said that it would not sell. Although reports this week suggested the company was talking to Elon Musk about a possible sale, TikTok said the news is "pure fiction."

Still, a former Biden Commerce Department official told Politico that the ban likely won't be enforced.

"Somebody is going to find a way to strike a deal, and they will be regarded as the hero of a TikTok generation," said Caitlin Legacki. "Democrats see the writing on the wall here, but I do think it speaks to a failure of both parties to actually explain to voters why this was necessary, and as a result, we're going to probably roll back what was the correct policy."

President-elect Donald Trump responded to the decision on Truth Social, writing that he will review the situation and respond in the "not too distant future."

"The Supreme Court decision was expected, and everyone must respect it," Trump wrote. "My decision on TikTok will be made in the not-too-distant future, but I must have time to review the situation. Stay tuned!"

On Thursday, Trump's incoming National Security Advisor, Florida Congressman Mike Waltz, said on Fox News' "Special Report" that Trump will "preserve" the app, either through an executive order or other measures, like the 90-day Presidential extension option written into the law. Trump is set to be inaugurated the day following the possible ban.

Related: Is Kevin O'Leary Buying TikTok? 'Shark Tank' Star Teams Up With Frank McCourt for 'People's' Bid

TikTok had argued that a ban "violates the First Amendment." The app is used by around 170 million Americans, according to ByteDance. During the proceedings, a lawyer representing TikTok creators wondered why other Chinese-owned companies, like Temu, aren't being targeted.

The justices noted that ByteDance is a foreign corporation that doesn't have First Amendment rights.

"Congress doesn't care what's on TikTok," Chief Justice John Roberts said during the hearing. "Congress is fine with the expression."

Related: 'Sent Ripples Through the Marketing World': What Businesses Can Do Now to Prepare for a Possible TikTok Ban, According to a CEO

In September, U.S. government attorneys argued that TikTok's algorithm is "controlled by its Chinese parent company," which may influence Americans on the app. The Biden Administration also argued that TikTok could access data from American users and send it to China.

Despite supporting a ban in the past, President-elect Trump urged the Supreme Court to block the ban in a filing in December.

In a separate court filing the same month, TikTok said that if the ban went through, creators and small businesses in the U.S. could lose $1.3 billion in revenue and earnings in just one month.

TikTok broke it down as about $1 billion in business marketing and $300 million in earnings for people who create videos with the app.

This is a developing news story and will be updated.

Erin Davis

Entrepreneur Staff

Freelance Writer

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