There’s no disputing TikTok has become a global phenomenon, with a reported 1.9 billion users worldwide (an estimated 170 million in the United States alone) and an algorithm that can make almost anyone go viral.
But TikTok has been trending due to a potential nationwide ban being considered by the U.S. Supreme Court, which could dramatically alter the app's future in the U.S. This legal battle highlights the platform's significant cultural and economic impact, making it a focal point of national conversation.
So, here are five key things to know about the Supreme Court arguments and the looming TikTok ban:
Key Points
1. The Supreme Court heard oral arguments on January 10, 2025, regarding a law that could ban TikTok in the United States if its Chinese owner, ByteDance, doesn't sell the app by January 19th.
2. TikTok and some users have sued to block the measure, arguing that it violates their First Amendment rights to free speech.
3. The U.S. government defends the law on national security grounds, citing concerns about the Chinese government potentially accessing data on American users and manipulating content.
4. If the ban takes effect, app stores would be prohibited from distributing TikTok, and Americans who have already downloaded the app would be unable to update it, eventually making it obsolete.
5. The case involves free speech rights and national security concerns, and the Supreme Court must balance these competing interests in its decision.
Is TikTok shutting down in the U.S.?
The Supreme Court heard arguments on the potential TikTok ban on Friday (January 10). The court will have to decide whether a law passed by Congress, the Protecting Americans from Foreign Adversary Controlled Applications Act, is unconstitutional.
As mentioned, key considerations include whether the law infringes on First Amendment rights by limiting free speech for TikTok users and creators and if the government's national security concerns about data access and content manipulation by the Chinese government justify the ban.
During oral arguments, Jeffrey Fisher, representing TikTok content creators, said that the law forcing new ownership burdens TikTok's speech, thus invoking First Amendment protections.
Chief Justice John Roberts challenged that assertion: "Congress is not opposed to expression. Their concern lies with a foreign adversary."
Noel Francisco, a former solicitor general, argued on behalf of TikTok and its parent company, warning, "Unless the Supreme Court intervenes to halt the law, TikTok will go dark starting on January 19."
U.S. Solicitor General Elizabeth Prelogar, representing the federal government, pointed to national security concerns, arguing that TikTok "collects vast swaths of data about tens of millions of Americans, which the [People's Republic of China] could use for espionage or blackmail."
Justice Sonia Sotomayor probed the government's position, asking, "How do we balance the national security interests against the First Amendment rights of 170 million Americans?"
- Fisher countered by asserting that while Congress has a legitimate interest in protecting national security, it doesn't include "suppressing the speech of Americans due to the potential influence on others."
- Justice Elena Kagan questioned the law's specificity, asking, "Why single out TikTok when other social media platforms also collect user data?"
- The government maintained that TikTok's unique position as a subsidiary of a Chinese company poses specific risks that justify the targeted legislation.
As the arguments progressed, it became clear the justices, in their eventual ruling, would need to balance national security concerns and First Amendment protections. A key question posed involved whether Americans have a right to receive information that could be harmed if this ban is upheld.
The court's decision, expected soon given the January 19 deadline, will have far-reaching implications for the future of TikTok in the U.S. and potentially set a precedent for how similar cases are handled.
Do TikTok creators have to pay taxes?
Meanwhile, TikTok's economic impact extends beyond the current Supreme Court case, particularly when it comes to taxes.
The platform has become a significant source of income for many content creators, who are typically classified as self-employed for tax purposes.
- It's worth noting that creators must report all taxable income from TikTok, including sponsorships, Creator Fund payments, virtual gifts, and advertising revenue.
- This self-employed status means they're responsible for income and self-employment taxes, often requiring quarterly estimated tax payments.
To help offset this tax burden, creators can generally deduct reasonable and necessary business expenses. However, as the platform’s fate hangs in the balance, TikTok's role in the digital economy remains an important concern for creators and policymakers alike.
Stay tuned.
