E-commerce businesses relying on TikTok for advertising now face fresh uncertainty after a U.S. federal appeals court upheld a law mandating the platform's Chinese parent company, ByteDance, to divest its ownership. This ruling intensifies the challenges for TikTok as it battles ongoing scrutiny over national security concerns.
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The U.S. Court of Appeals for the District of Columbia Circuit delivered its decision, asserting that the challenged provisions of the law withstand constitutional scrutiny. The senior judge, writing for the majority, stated, 'We therefore deny the petitions.'
This development stems from a foreign aid law passed in April, which gives TikTok until 19 January 2025 to sever ties with ByteDance. Failure to do so could see the app removed from U.S. app stores and web-hosting services. A 90-day extension may be granted if a sale is actively underway.
The ruling raises questions about the future advertising strategies of businesses relying on TikTok's 170 million U.S. users to boost sales. Without clarity, retailers may need to explore alternative platforms to maintain their reach.
Source: www.homeaccentstoday.com