Snap Inc. (NYSE:SNAP) shares are trading lower on Friday despite the United States Supreme Court upholding the TikTok ban-or-sale law. Here’s what you need to know.
What To Know: The court, in a unanimous decision, ruled that the law does not violate Americans’ First Amendment rights. To avoid the ban, TikTok would need to divest its U.S. assets, however, a sale appears unlikely.
With that, TikTok is set to be banned in the U.S. come Jan. 19, a day before President-elect Donald Trump takes office. Trump has previously stated that he will use his power to “save” TikTok once he takes office. Additionally, he requested that the Supreme Court postpone the TikTok ban until he assumes office which the court declined to grant.
Following the Supreme Court’s decision, Trump posted on Truth Social, “The Supreme Court decision was expected, and everyone must respect it. My decision on TikTok will be made in the not-too-distant future, but I must have time to review the situation. Stay tuned!”
The enforcement of the law and its penalties for technology companies like Google and Apple, if they continue to allow TikTok on their app stores, ultimately rests with the U.S. Department of Justice. President Joe Biden has deferred the implementation of the law to the incoming Trump administration. Biden, last year, signed the law into effect after it received bipartisan support in Congress.
What Else: The U.S. Federal Trade Commission (FTC) has referred a complaint against Snap to the Department of Justice, according to Reuters. The FTC alleges that the company used an artificial intelligence (AI) chatbot that harmed users.
However, no specifics about the harm caused by the My AI chatbot have been provided by the government agency. Snap stated that it adheres to strict privacy standards and that the FTC lacks sufficient evidence.
Related Link: Here’s How Much You Would Have Made Owning RBC Bearings Stock In The Last 15 Years
SNAP Price Action: At the time of writing, Snap stock is trading 1.87% lower at $11.01, according to data from Benzinga Pro.
Image: via Shutterstock
