An appeals court on Friday upheld a law that would force TikTok owner ByteDance to sell the popular short-video app or face a nationwide ban. The law does not explicitly ban TikTok, but blocks app stores such as Apple’s App Store or Google’s Play Store from distributing it unless ByteDance separates itself from the social network.

While the decision is a setback for TikTok, it is not the end of the story. ByteDance is expected to appeal the law to the Supreme Court, which will make the final decision on the matter. If the law is ultimately implemented, it would be a major blow to TikTok content creators, advertisers and the app’s 170 million users.

But one company will undoubtedly benefit from a TikTok ban: Mark Zuckerberg’s Meta (META).

The tech giant is not only TikTok’s biggest competitor, but also the closest mainstream social media app with a similar user base and feature set. Meta designed Reels, which Zuckerberg has spoken about repeatedly during the company’s earnings announcements, as a way to combat the rise of TikTok.

Instagram introduced Reels in 2020, positioning it as a way for users to explore more content available on the photo and video sharing app. Since then, Meta has used AI to further optimize its recommendations feed, making Reels even more attractive and ensuring that users not only try the feature but continue to scroll through video after video, just like they do on TikTok.

The moves also pay off. During Meta’s first-quarter earnings call in April, Zuckerberg said that Reels usage accounts for 50% of the time users spend on Instagram. And during the company’s third-quarter earnings call in October, CFO Susan Li said that 60% of Reels recommendations come from original content, which is exactly what keeps people sticking around and continuing to scroll.

Meta doesn’t specify exactly how much revenue Reels contributes to the company’s bottom line, but Li previously explained that the feature makes a positive contribution to Meta’s overall revenue.

With Reels performing well, TikTok content creators are likely to switch to the service if their app of choice is ultimately banned in the US. Users who follow these creators would then follow their lead and advertisers with them, ultimately helping to increase Meta’s sales.

Shares of Meta rose 2% on Friday.

Meta is certainly not the only TikTok rival that could benefit from a ban on the app. YouTube Shorts could also see a boost, which would also bring in more ad dollars for Google’s (GOOG, GOOGL) short-video service.

The TikTok ban law arose from national security concerns surrounding the company’s parent company, ByteDance, and its ties to the Chinese government. U.S. officials fear the Chinese government could force TikTok to spy on American users or use the app to spread pro-Chinese propaganda.

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TikTok has denied the allegations and the US has provided no direct evidence that the Chinese government is actively using the app to monitor its user base.

But that hasn’t stopped members of Congress from taking action. The dispute over TikTok is now likely to go to the Supreme Court. There’s also a chance that President-elect Trump could intervene on TikTok’s behalf.

While Trump initially initiated measures to ban the social media app, he has since softened his stance on the platform.

Email Daniel Howley at [email protected]. Follow him on Twitter at @DanielHowley.

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