Shares of social media companies $Snap Inc (SNAP.US)$, $Trump Media & Technology (DJT.US)$ and $Meta Platforms (META.US)$ are trading higher Friday as the U.S. Supreme Court hears oral arguments in the case regarding the potential ban of TikTok.
Oral arguments are underway in the Supreme Court case challenging the pending ban of TikTok. And the Justices appear skeptical of the arguments presented by attorneys for TikTok and its users.
Chief Justice John Roberts questioned TikTok's ties to China and noted that Congress found that ByteDance cooperates with Chinese intelligence work and must comply with China's laws.
"Are we supposed to ignore the fact that the ultimate parent is in fact subject to doing intelligence work for the Chinese government?" Roberts asked.
Justice Brett Kavanaugh defended national security concerns related to data collection through the TikTok app and asked what will occur on the Jan. 19 deadline if the High Court does not act.
Noel Francisco, an attorney representing TikTok, replied that TikTok will "go dark" and "essentially, the platform shuts down."
The case could have implications for the other social media platforms which would most likely benefit from a ban of TikTok. Unless TikTok is sold to a non-Chinese company or the Supreme Court steps in, the platform will be removed from app stores in the U.S. on Jan. 19.
It should also be noted that President-elect Donald Trump was sentenced on Friday with an unconditional discharge in the New York hush money case which could also be affecting Trump Media & Technology shares. With the ruling, Trump avoids prison time or probation related to the case.
