A US federal court has ruled that TikTok's parent company, ByteDance, must sell its US operations by January 19, 2025, or the app will be banned nationwide. The decision is being seen as a major win for the Justice Department, which has raised concerns about TikTok's ties to the Chinese government, but it is a significant setback for ByteDance.

TikTok, which has 170 million users in the US, plans to appeal the recent ruling to the Supreme Court, according to a report by Reuters. The court's decision supports a law aimed at addressing national security risks posed by TikTok's Chinese ownership. It argues that ByteDance's access to Americans' personal data could allow the Chinese government to misuse or manipulate information.

US Attorney General Merrick Garland called the ruling an "important step" in addressing these concerns, adds the Reuters report. However, the Chinese Embassy in Washington criticised the decision, calling it "a blatant act of commercial robbery" and warning it could damage relations between the US and China.

The law also blocks app stores like Apple and Google from offering TikTok and prevents hosting services from supporting the app after the deadline unless ByteDance complies.

If the Supreme Court doesn't overturn the ruling, ByteDance must sell TikTok by January or face a ban. President Joe Biden can extend the deadline by 90 days if ByteDance can show significant progress toward a sale, says the report. However, incoming President-elect Donald Trump has expressed opposition to TikTok and may not support any extension.

According to a letter seen by Reuters, TikTok CEO Shou Zi Chew said the company is disappointed with the decision but promised to keep fighting to protect users' rights. Free speech advocates, like the American Civil Liberties Union, have criticised the ruling, saying it violates the First Amendment rights of TikTok users.

The court argued, however, that TikTok's ties to China could allow the government to manipulate US public opinion, which goes against the principles of free speech.

The ruling could open the door for further action against other foreign-owned apps that pose security concerns. Similar attempts were made in the past to ban apps like WeChat, but those faced legal challenges.

The decision comes at a time of growing tension between the US and China, including trade disputes and restrictions on technology exports. Meanwhile, TikTok's competitors, like Meta and Alphabet, saw their stock prices rise after the ruling.

ByteDance, which was valued at $268 billion in late 2023, is backed by investors like Sequoia Capital and General Atlantic. Whether it can navigate these legal challenges and keep TikTok operational in the US remains uncertain, further adds Reuters.