The US Supreme Court declined to step in and block a law that seeks to force ByteDance to sell TikTok to a US owner. AP
The US Supreme Court declined to step in and block a law that seeks to force ByteDance to sell TikTok to a US owner. AP
The US Supreme Court declined to step in and block a law that seeks to force ByteDance to sell TikTok to a US owner. AP
The US Supreme Court declined to step in and block a law that seeks to force ByteDance to sell TikTok to a US owner. AP

US Supreme Court allows TikTok ban to take effect on Sunday


Cody Combs
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The US Supreme Court on Friday declined to step in and save TikTok, leaving the door open for the social media platform to be banned in America by Sunday.

"TikTok’s scale and susceptibility to foreign adversary control, together with the vast swathes of sensitive data the platform collects, justify differential treatment to address the government’s national security concerns," read the unanimous decision by the US Supreme Court.

"A law targeting any other speaker would by necessity entail a distinct inquiry and separate considerations. On this understanding, we cannot accept petitioners’ call for strict scrutiny. No more than intermediate scrutiny is in order."

The Supreme Court declined to overturn a law passed by Congress that seeks to ban TikTok unless the platform is sold to a US owner. Photo: Screenshot / Supreme Court
The Supreme Court declined to overturn a law passed by Congress that seeks to ban TikTok unless the platform is sold to a US owner. Photo: Screenshot / Supreme Court

In a separately filed opinion, Justice Neil Gorsuch echoed those sentiments, with some caveats. "The law before us also appears appropriately tailored to the problem it seeks to address. Without doubt, the remedy Congress and the President chose here is dramatic," he wrote.

"The law may require TikTok’s parent company to divest or (effectively) shutter its US operations. But before seeking to impose that remedy, the co-ordinate branches spent years in negotiations with TikTok exploring alternatives and ultimately found them wanting."

Several hours after the Supreme Court's ruling, TikTok's chief executive Shou Zi Chew posted a video to TikTok, essentially saying that he was banking on the forthcoming Trump administration to keep the platform alive.

"On behalf of everyone at TikTok, and all of our users across the country, I want to thank President Trump for his commitment to work with us to find a solution that keeps TikTok available in the US," he said.

Later on Friday evening, TikTok's communications team provided more a blunt assessment of the situation.

"Unless the Biden Administration immediately provides a definitive statement to satisfy the most critical service providers assuring non-enforcement, unfortunately TikTok will be forced to go dark on January 19, read a statement posted on X."

"This is a strong stand for the first amendment and against arbitrary censorship ... We are grateful and pleased to have the support of a president who truly understands our platform," he added, also noting that TikTok would "do everything" in its power to keep "stay vibrant" in the days ahead.

A week ago, the Supreme Court heard arguments from ByteDance, the Chinese parent company of TikTok, as it sought to make the case that a law which would force it to sell the platform to a US entity was unconstitutional. Many of the justices seemed sceptical of the company’s argument that its First Amendment rights were being violated.

Some, like Mr Gorsuch, seemed dismissive of that argument and pointed out that although much of TikTok operates in the US, it is still technically owned by ByteDance. “Speech by a foreign government with enormous resources is not protected,” Mr Gorsuch told TikTok’s lawyer last Friday. “Why should we entertain that notion, because of some convoluted corporate structure?”

White House officials have told various media outlets that outgoing President Joe Biden will leave the enforcement of the law that essentially bans TikTok up to the incoming Trump administration. In a brief statement issued shortly after the Supreme Court decision was handed down, the White House addressed what appears to be a forthcoming TikTok shutdown.

"TikTok should remain available to Americans, but simply under American ownership or other ownership that addresses the national security concerns identified by Congress in developing this law," the White House said. "Given the sheer fact of timing, this administration recognises that actions to implement the law simply must fall to the next administration, which takes office on Monday."

The Electronic Frontier Foundation, a non-profit organisation based in San Francisco that has a focus on civil liberties, expressed dismay about the Supreme Court ruling. "We are disappointed to see the Supreme Court sweep past the undisputed content-based justification for the law – to control what speech Americans see and share with each other – and the rule only based on the shaky data privacy concerns," read a statement from EFF.

President-elect Donald Trump issued a brief statement on his Truth Social platform, urging people to respect the ban, while leaving the door open for a change in the days ahead. "My decision on TikTok will be made in the not too distant future, but I must have time to review the situation, Stay tuned."

Origins of the TikTok 'ban'

For the last five years, the video and music-based social media platform TikTok has experienced tremendous growth and ample criticism. With about 170 million monthly active users in the US, TikTok is one of the most influential social media apps in the country.

Its success has spurred the Meta-owned platform Instagram to emphasise video. It also prompted the Alphabet-owned YouTube to place a priority on short, vertical videos called "shorts". Even the professional work-based social media platform LinkedIn has started to place more vertical videos in user feeds.

Yet going as far back as 2019, TikTok's data collection practices and the platform's owner, ByteDance, have caused much consternation among various data experts, elected officials and those tasked with ensuring US national security. Some have pointed out that although much of the TikTok's user data is now stored on US servers, ByteDance is still subject the laws of China, which could give the Chinese government access to an unprecedented trove of US user data.

US officials have argued that could be a major national security risk. At the heart of the current deadline is an argument that goes back to 2020, when Mr Trump, who was president at the time, issued an executive order emphasising user data concerns related to TikTok because its parent company was based in China.

TikTok and ByteDance have repeatedly dismissed those concerns and denied that any US user data is in danger of being compromised. Yet in April of 2024, in a bipartisan vote, Congress passed a law that sought to force ByteDance to sell TikTok to a US individual or entity, or risk being banned by January 19. ByteDance has repeatedly said it will not sell TikTok, and plans to go dark in the US on the January 19 deadline.

Donald Trump's TikTok reversal

Though he was among the first to raise the red flag about TikTok and its China-based ownership during his first term in the White House, Mr Trump later joined the platform during his 2024 presidential campaign, quickly gaining millions of followers. Mr Trump even went as far as filing a brief to the US Supreme Court as it prepared to hear TikTok's arguments about the constitutionality of a law that essentially bans the platform in the US.

He told the Supreme Court to extend the deadline and give him the opportunity to negotiate a deal that would ensure the platform's survival in the US. TikTok's chief executive, Shou Zi Chew, plans to attend Mr Trump’s inauguration in some capacity, along with the heads of other technology companies.

On Friday, Mr Trump indicated that he had briefly spoken with Chinese President Xi Jinping about TikTok, among other issues, but stopped short of disclosing any details about what actions he will take regarding the platform once sworn in.

At the Leap technology conference in Riyadh, TikTok chief executive Shou Zi Chew reflected on the platform's growing popularity amid increased scrutiny from regulators in parts of the world.
At the Leap technology conference in Riyadh, TikTok chief executive Shou Zi Chew reflected on the platform's growing popularity amid increased scrutiny from regulators in parts of the world.

Just one day prior, Democratic Senator Edward Markey said that he had pushed for Mr Biden to extend TikTok's deadline, and he left the door open for Mr Trump to do the same after being sworn in. “This isn't just cat videos,” Mr Markey said. “It's community, it's small businesses, it's creators, it's democracy, it's people talking to each other, and again, it's 65 per cent of all adults in the country.”

Shortly after the Supreme Court issued its decision, Democratic Senate leader Chuck Schumer issued a statement urging either President Biden or president-elect Donald Trump to extend the TikTok deadline. "We can both free the app from any influence and control from the Chinese Communist Party and keep TikTok going, which will preserve the jobs of millions of creators," he said.

Republican Senator Tom Cotton, however, was far less nuanced in his response to the Supreme Court ruling. "ByteDance and its Chinese communist masters had nine months to sell TikTok before the Sunday deadline," he posted on X.

"The very fact that communist China refuses to permit its sale reveals exactly what TikTok is: a communist spy app. The Supreme Court correctly rejected TikTok’s lies and propaganda masquerading as legal arguments."

Gaurav Misra, chief executive and co-founder of Captions, said it's easier than ever for content creators to diversify away from TikTok. Photo: Captions
Gaurav Misra, chief executive and co-founder of Captions, said it's easier than ever for content creators to diversify away from TikTok. Photo: Captions

Gaurav Misra, chief executive and co-founder of Captions, a developer of popular video-editing and generation tools, also reflected on the Supreme Court ruling from a economic and technology enterprise standpoint.

"The ban highlights how geopolitics is increasingly shaping tech regulation. It’s not just about TikTok—it’s about data sovereignty and how global platforms navigate national boundaries," he said.

"Look for platforms that prioritize creator monetization, transparency, and control over your audience. We’re seeing a lot of creators cross-posting their best videos to Reels and some are eyeing YouTube Shorts, X, and LinkedIn as well. There will surely be a wave of startup video platforms launching too," Mr Misra added.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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As a UAE-based travel agent who processes tourist visas from the Philippines, Jennifer Pacia Gado is fielding a lot of calls from concerned travellers just now. And they are all asking the same question.  

“My clients are mostly Filipinos, and they [all want to know] about good conduct certificates,” says the 34-year-old Filipina, who has lived in the UAE for five years.

Ms Gado contacted the Philippines Embassy to get more information on the certificate so she can share it with her clients. She says many are worried about the process and associated costs – which could be as high as Dh500 to obtain and attest a good conduct certificate from the Philippines for jobseekers already living in the UAE. 

“They are worried about this because when they arrive here without the NBI [National Bureau of Investigation] clearance, it is a hassle because it takes time,” she says.

“They need to go first to the embassy to apply for the application of the NBI clearance. After that they have go to the police station [in the UAE] for the fingerprints. And then they will apply for the special power of attorney so that someone can finish the process in the Philippines. So it is a long process and more expensive if you are doing it from here.”

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  • Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB. 
  • Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.  
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  • Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.
Updated: January 18, 2025, 1:59 AM