TikTok claims a US ban would have a "profound" effect on free speech.
TikTok contended in court on Monday that a US law, which could see it banned unless sold by ByteDance, would have a "staggering" effect on the free speech rights of its American users. The legislation stems from concerns that US users' data might be exposed to China's government. Both TikTok and ByteDance have consistently denied any connections to Chinese authorities.
In early May, the companies filed a lawsuit to block the law, calling it unconstitutional and a de facto restriction on the speech of its 170 million US users. Their case was heard by a three-judge panel at an appeals court in Washington, DC on Monday.
"This law imposes extraordinary restrictions on speech based on vague, future risks," said Andrew Pincus, TikTok and ByteDance’s attorney. Concerns about China arose early in the proceedings, with Pincus clarifying that the company "is not owned" by China, explaining, "TikTok's parent company is ByteDance Limited, a holding company based in the Cayman Islands."
However, Judge Sri Srinivasan countered, stating the company remains "subject to Chinese control." Pincus emphasized that the US government has not accused TikTok of any wrongdoing and argued that the company is being punished based solely on the possibility of future issues.
Pincus also faced scrutiny for claiming the law would impose an unprecedented ban on a single entity and his assertion that it would be "unfeasible" to divest TikTok's US operations. Judge Ginsberg countered, saying the law constitutes "an absolute prohibition on the current control arrangement" rather than a direct ban on the company itself. He added that the legislation targets a group of companies controlled by a "foreign adversary," not just TikTok specifically.