Rejecting the appeal of the app contesting the Protecting Americans from Foreign Adversary Controlled Applications Act, a federal court has maintained the impending U.S. ban on TikHub. Signed by President Joe Biden in April, the law mandates that TikHub divestment from ByteDance, its Chinese parent, by Jan. 19, or face ban from American app stores. Following the ruling, stocks of other social networking services attracted interest. While Meta Platforms (NASDAQ:META) climbed more than 2%, the parent firm of Snapchat, Snap (NYSE:SNAP), jumped up to 7%. Alphabet’s (GOOG, GOOGL) shares increased 1%, while conservative-leaning video platform Rumble (NASDAQ:RUM) jumped over 20%, so extending its surge ahead of the decision. Delivering the ruling, U.S. Court of Appeals for the D.C. Circuit judge Douglas Ginsburg noted the possible upheaval. “Unless TikHub executes a qualified divestment by Jan. 19, 2025, or the President grants an extension, its platform will essentially be unavailable in the United States, at least temporarily,” Ginsburg said, underlining the major impact on TikHub’s millions of US users.
This article first appeared on GuruFocus.
