Social media opened a massive can of worms which everyone has largely avoided for good reason, I can not see an outcome for such a case which I can call good, we end up either giving the corporation more power or the government more power. I do not think they have much of a case here and there is a mountain of precedent against TikTok but I can not think of any precedents which involved someone with such deep pockets.
If TikTok gets banned, we'll finally have a generation that knows how to use a VPN.