Will TikTok Ban Be Challenged in Court? | Pivot
Kara Swisher (host), Scott Galloway (host)
In this episode of Pivot, featuring Kara Swisher and Scott Galloway, Will TikTok Ban Be Challenged in Court? | Pivot explores tikTok Faces Forced Divestment, Legal Battles, And Geopolitical Crossfire Kara Swisher and Scott Galloway discuss new U.S. legislation that would force TikTok’s Chinese parent company, ByteDance, to divest the app within 270 days or face an effective ban.
TikTok Faces Forced Divestment, Legal Battles, And Geopolitical Crossfire
Kara Swisher and Scott Galloway discuss new U.S. legislation that would force TikTok’s Chinese parent company, ByteDance, to divest the app within 270 days or face an effective ban.
They explain how the bill, previously stalled in the Senate, was strategically bundled with foreign aid for Ukraine, Israel, and Taiwan, ensuring strong bipartisan support.
Scott strongly supports the move as a national security and trade-symmetry measure, while Kara highlights the likely constitutional challenges and the legal path through the courts up to the Supreme Court.
They also explore potential outcomes, including divestment, negotiated accommodations with the White House, and the business challenges around TikTok’s algorithm, valuation, and slowing growth.
Key Takeaways
The bill targets ownership, not content, framing it as forced divestment rather than a pure speech-based ban.
Positioning it as a structural ownership issue tied to trade symmetry and national security may strengthen it against First Amendment challenges.
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Bundling TikTok with popular foreign aid packages was a deliberate legislative tactic.
Attaching it to Ukraine/Israel/Taiwan aid helped overcome Senate gridlock and generated overwhelming bipartisan support in the House.
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A significant legal battle is inevitable, likely reaching the Supreme Court.
Given prior rulings blocking bans in Montana and Trump-era attempts, ByteDance will argue free speech violations while the U. ...
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The U.S. is framing this as a symmetry issue with foreign media ownership rules.
Scott points out that the U. ...
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ByteDance may seek a negotiated compromise rather than a clean divestment.
With real risk now on the table, the company could pursue data, governance, or structural concessions to satisfy the White House and avoid a fire-sale or full algorithm transfer.
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The algorithm is the most contentious and uncertain asset in any sale.
Questions remain about whether a U. ...
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TikTok’s growth may be flattening, increasing strategic risk for ByteDance.
With younger users quick to move on to new platforms, a prolonged legal or political fight could erode TikTok’s value and user base even without an immediate ban.
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Notable Quotes
“This is no different than in the '60s when we were in a cold war with Russia, we let the Kremlin own NBC, ABC and CBS.”
— Scott Galloway
“We're gonna make sure that we don't raise a generation of civic, military and nonprofit and business leaders in America that hate America.”
— Scott Galloway
“They chose the wrong word saying ban. It's forced divestment.”
— Scott Galloway
“All right, but it's gonna go to courts and you know it's gonna be blocked.”
— Kara Swisher
“These guys should just take their money and figure it out. The issue is what, who's gonna get the algorithm?”
— Kara Swisher
Questions Answered in This Episode
How likely is the Supreme Court to prioritize national security over free speech arguments in a TikTok divestment case?
Kara Swisher and Scott Galloway discuss new U. ...
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What would a realistic ‘accommodation’ between ByteDance and the White House look like short of full divestment?
They explain how the bill, previously stalled in the Senate, was strategically bundled with foreign aid for Ukraine, Israel, and Taiwan, ensuring strong bipartisan support.
Get the full analysis with uListen AI
If the core recommendation algorithm stays in China, is TikTok still worth acquiring for a U.S. buyer?
Scott strongly supports the move as a national security and trade-symmetry measure, while Kara highlights the likely constitutional challenges and the legal path through the courts up to the Supreme Court.
Get the full analysis with uListen AI
How should the U.S. balance open internet ideals with the desire for trade and media ownership symmetry with China?
They also explore potential outcomes, including divestment, negotiated accommodations with the White House, and the business challenges around TikTok’s algorithm, valuation, and slowing growth.
Get the full analysis with uListen AI
Could a drawn-out legal and political battle over TikTok accelerate the shift of younger users to alternative platforms?
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Transcript Preview
The bill to ban or divest TikTok is now in the hands of the Senate following the passage in the House this weekend. The legislation, which passed by, uh, a 360-58 vote, was bundled into an aid package for Ukraine, Israel, and Taiwan by Speaker Mike Johnson. Very cle- very clever Mike Johnson. If the bill... They already passed one, but it was stuck in the Senate. But this is a slightly different bill. If the bill makes it through the Senate, President Biden has said he will sign into law. TikTok parent company ByteDance then has 270 days to sell the app, m- closer to a year, or face a ban. Um, let's talk about how it went down, 'cause they passed one that was getting trouble in the Senate. Maria Cantwell wasn't against it, now she's for it. ByteDance indicated it could mount a legal challenge. That's where it's going next, arguing the ban would trample free speech rights. It'll definitely go in the courts. It's lost... It's won before in courts. Um, in November, a federal judge blocked a Montana law to ban TikTok across the state specifically. Donald Trump attempted to ban TikTok in 2020, it was also rejected by a federal judge. It'll definitely go to the Supreme Court. Um, and then they'll have to at least look for a buyer in case they lose. But if this does become law, future bans of foreign companies and products, we've done that before. Um, so that's a very clever way to get it through. That's... And then, then then they have to deal with the, the law itself.
I mean, there's so many ways you can tell you're getting older, right? You... The idea of a cruise does not sound horrific to me anymore. I'm, I'm, "Oh, okay." You know, um, I actually listened the other day. Someone was talking about catheters, and I'm like, "Say more, 'cause I know it's coming."
(laughs)
And the other... I'm not exaggerating, Kara. On, on Saturday-
(laughs)
... I was obsessed with CSPAN.
Yeah.
I mean, I might as well have been 120 fucking years old.
Oh. (laughs)
This, uh, Saturday-
I'm just thinking of you in a catheter.
(laughs)
But go ahead.
Uh, my dad says the guy who invented the catheter should literally get the Nobel Prize. Um, anyways-
Well-
Um-
... I can see that.
(laughs) I'm sorry, I got thrown off there.
Men have an easier time. (laughs)
Yeah.
Anyway. (laughs)
There we go. There we go.
Good.
So, um-
Yeah.
God, just talking about catheters makes me want to pee. Um, anyways.
Yeah. Okay.
I'm... Kara, I, I, I just want to be clear, uh, my new favorite-
Yeah.
... person or near favorite person is Speaker Johnson.
Yeah. Oh, good heavens, he took so fucking long.
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