A panel of federal judges ruled on Friday to uphold a law that could lead to a nationwide ban on TikTok in the U.S.
The legislation, was passed by Congress in April and signed by President Joe Biden.
Mandates that the Chinese-owned social media platform must sell its U.S. operations to an American company. This must happen before by January 19, 2025, or it has to face being blocked in the country.
“We acknowledge the significant impact this decision has on TikTok and its users,” the three-judge panel wrote in their unanimous ruling.
If TikTok fails to comply with the divestiture order, the court stated, the app “will effectively be unavailable in the United States, at least temporarily.” The ruling also noted that millions of TikTok users would need to find alternative platforms for communication.
In response, TikTok plans to appeal the decision to the U.S. Supreme Court. Is reportedly seeking an injunction to keep the app operational during the legal proceedings, according to media reports.
The Appeals Court ruling also indicated that TikTok could be granted a 90-day extension. This due to the divestiture deadline. When President-elect Donald Trump assumes office on January 20, provided there is “progress” toward meeting the order.