⚖️ TikTok Court Case Takeaways

Author

Liam Gill
January 14, 2025

In partnership with

Supreme Court Considers TikTok Ban: What Startups Should Know

The Supreme Court is deliberating on whether to uphold a law requiring TikTok's parent company, ByteDance, to divest its U.S. operations or face a nationwide ban. This case centers on national security concerns, with the U.S. government arguing that ByteDance’s Chinese ownership risks exposing sensitive user data to the Chinese government. TikTok counters that the law infringes on First Amendment rights, unfairly targets the platform, and imposes unfeasible demands, including divestiture within an unrealistic timeline.

Fall in love with BILL, get a $200 Saranoni blanket

BILL + controllers = ❤️

We're sharing the love! Take a demo of BILL Spend & Expense and get a $200 gift card to Saranoni Luxury Blankets & Gifts.1

"Switching to BILL for our credit cards has been such an amazing decision for us! After transitioning from a competitor to BILL Spend & Expense 6 months ago, we’ve already received over $10,000 in cash-back rewards—something our previous provider never came close to offering.” – Madolen Gossett, Controller @ Saranoni

1Terms and Conditions apply. See offer page for details.
Card issued by Cross River Bank, Member FDIC, and is not a deposit product.

Implications for Tech Startups
This case highlights the growing regulatory scrutiny of tech platforms, especially those with foreign ownership or data practices that could pose security risks. Startups should take note of the heightened focus on data sovereignty and transparency. Businesses handling sensitive user data must implement robust safeguards and be prepared to demonstrate compliance with evolving regulations. For startups relying on platforms like TikTok for user acquisition or marketing, this case serves as a reminder to diversify outreach strategies to mitigate the impact of sudden platform restrictions.

Actionable Insights for Startups

  1. Audit Data Practices: Ensure data collection and storage comply with local and international regulations.

  2. Mitigate Platform Dependency: Avoid over-reliance on any single platform by exploring alternative channels for user engagement and marketing.

  3. Stay Informed: Monitor regulatory developments in tech and adapt swiftly to new compliance requirements to stay competitive in a shifting landscape.

A ruling against TikTok could set a precedent for similar actions against other foreign-owned tech companies, reshaping the regulatory environment for startups worldwide.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

Stay Informed, Without the Noise.

Your inbox is full of news. But how much of it is actually useful? The Daily Upside delivers sharp, insightful market analysis—without the fluff. Free, fast, and trusted by 1M+ investors. Stay ahead of the market in just a few minutes a day.