The lawsuit alleges TikTok and ByteDance designed addictive features for minors and deceptively promoted the app as safe. At issue before the state's highest court is whether North Carolina courts have jurisdiction over the company.
ByteDance previously sought to dismiss the case, arguing that the North Carolina Business Court lacked jurisdiction. Lower courts allowed the lawsuit to move forward, finding that the company has relationships with users in the state. The company appealed that decision to the Supreme Court.
During oral arguments Wednesday morning, TikTok's attorney argued that the platform operates as a single nationwide service and that having users in North Carolina does not mean the company specifically targeted the state.
The state countered that TikTok maintains extensive relationships with North Carolina users, collects their data, sends targeted advertising and push notifications, and earns revenue from users in the state. State attorney Josh Abram argued that the company cannot conduct business with North Carolina residents while also claiming the state lacks authority over it.
The state also argued that North Carolina children downloaded the app in the state, used it there and were allegedly harmed there.
TikTok's attorney told the court:
"It's tailored to the users, not to the state. I don't contest at all that if you had a, you know, Tarheel Nation, website that you operated in Chicago, but it was tailored to, the interest of North Carolinians, that would very likely subject you to jurisdiction. In North Carolina for somebody who swore and said they had a bad experience."
Abram argued on behalf of the state:
"ByteDance actively marketed TikTok in our state. It enters into millions of contracts with North Carolinians, and it sends geo targeted ads to our children, push notifications as well. Those are its own choices. Over a million children and teens. North Carolina did not randomly sign up for TikTok. That's not isolated and that's not fortuitous."
After TikTok was given time for a brief rebuttal, the justices left the bench, concluding oral arguments.
The court did not issue a decision Wednesday. The justices will now review the oral arguments and written filings before issuing a ruling at a later date.
Download the ABC11 News app