The Supreme Court is starting 2025 with a blockbuster case that will have dramatic implications for one of China’s most valuable technology companies, millions of American smartphone users, and some of the biggest social media companies in the US. TikTok is making an emergency appeal before the highest court, asking it to block enforcement of a federal law signed by President Biden in April that effectively bans the app on Jan. 19 unless it is sold to an owner not controlled by a foreign adversary.
The Case for Free Speech
TikTok’s arguments that the law should be overturned in the name of free speech will be aired at a hearing on Jan. 10, just 10 days before Donald Trump is sworn in as president. Trump, who on the campaign trail suggested in a social media post that he would ‘save TikTok,’ is asking the court to suspend the divestment deadline and consider his preference for a ‘negotiated resolution’ — given that as president he will be responsible for national security.
Late Friday, the Department of Justice asked the Supreme Court to reject Trump’s request, saying no one was disputing that China ‘seeks to undermine U.S. interests by amassing sensitive data about Americans and engaging in covert and malign influence operations.’
The Potential Impact on Social Media Rivals
A ruling from the Supreme Court to uphold the ban could be a long-term boon for TikTok’s social media rivals by redistributing advertising dollars to platforms like Meta (META), according to Mark Lightner, head of special situations legal research for CreditSights, an independent credit research firm. Other US tech firms that supply microchips and cloud computing services to TikTok could see a dent in revenue.
The Court’s Decision
The court may have tipped its hand about how it may rule, Lightner said, when it decided to hold arguments on Jan. 10 rather than first grant TikTok’s request to pause the new law and then hear arguments later in the court’s 2025 term. One possible outcome in the coming weeks is that the Supreme Court will uphold the ban, paving the way for a sale of TikTok’s US operations.
Other High-Stakes Cases
But the TikTok case is just one of several high-stakes cases that will come before the Supreme Court in 2025. Here are some of the most notable ones:
The FLSA Case:
Whether companies can file cases with courts that may be more inclined to favor their views is the subject of another case that will be argued this month before the Supreme Court. The case, Food and Drug Administration v. R.J. Reynolds Vapor Co., started with the tobacco maker R.J. Reynolds challenging an FDA ban on flavored e-cigarettes.
The Wire Fraud Case:
Another Supreme Court case that will come before the high court in 2025 could expand or limit the Justice Department’s reach to go after financial wrongdoing. The case, Stamatios Kousisis and Alpha Painting and Construction v. US, deals with a contractor who deceived the government in an application for a government contract.
The FLSA Case:
EMD has argued that such a bar is too high. A lower court had ruled that EMD followed the wrong standard in classifying the representatives as exempt from minimum wage and overtime pay. The Supreme Court will now review this decision, which could have significant implications for employers across the country.
The Implications of These Cases
These cases are not just about the law; they are about how companies operate in a world where technology and globalization are changing the rules. They raise questions about free speech, national security, and the role of government in regulating business practices.
In the coming weeks, we will be keeping a close eye on these cases as they make their way through the Supreme Court. Will the court uphold the ban on TikTok? Will it limit the Justice Department’s reach to go after financial wrongdoing? These are just some of the questions that will be answered in the coming months.
The Impact on Businesses and Investors
These cases could have significant implications for businesses and investors. Companies like Meta, Google, and Amazon may see a boost if TikTok is banned, while other US tech firms may see a decline in revenue. The decision on the FLSA case could also impact employers across the country.
The Role of the Supreme Court
As the highest court in the land, the Supreme Court plays a critical role in shaping the law and its implications for businesses and individuals. Its decisions have far-reaching consequences that can shape the direction of the economy and society as a whole.
In conclusion, these cases are just some of the high-stakes ones that will come before the Supreme Court in 2025. They raise questions about free speech, national security, and the role of government in regulating business practices. As we watch these cases unfold, it’s clear that the implications will be far-reaching and significant for businesses and individuals alike.
Timeline:
- January 10: The Supreme Court will hold a hearing on TikTok’s appeal to block enforcement of the federal law banning the app.
- Coming weeks: The Supreme Court is expected to rule on several high-stakes cases, including the FLSA case, the wire fraud case, and others.
What to Watch:
- How the Supreme Court rules on these high-stakes cases
- The implications of these decisions for businesses and investors
- The potential impact on the economy and society as a whole
By following these developments closely, you’ll be well-positioned to stay ahead of the curve.
