Shares of Facebook-owner Meta Platforms hit a record high on Friday after a U.S. appeals court upheld a law requiring China-based ByteDance to divest its popular short video app TikTok by early next year or face a ban.
The decision is a devastating blow to ByteDance, whose social media app is used by 170 million Americans.
It affirmed a law, which was passed by Congress with bipartisan support and signed by President Joe Biden, that gives the U.S. government sweeping powers to ban other foreign-owned apps that could raise concerns about collection of Americans’ data.
TikTok and ByteDance had argued that the law is unconstitutional and violates Americans’ free speech rights.
According to a report by Reuters, Meta Platforms shares rose to an all-time record high of $629.78, and were last up 2.7% at $625.37. Meta’s social media platforms, including Facebook and Instagram, compete with TikTok for users and advertising.
