Without radical changes, TikTok could vanish in the US

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Billionaire Real Estate Mogul Hopes to Turn TikTok Into His Utopian Internet Dream​


Frank McCourt says he wants to buy TikTok to make a "new and better version of the internet."​

By

Matt Novak

Published Wednesday 12:25PM

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Frank McCourt speaks onstage during Unfinished Live at The Shed on September 22, 2022, in New York City.

Frank McCourt speaks onstage during Unfinished Live at The Shed on September 22, 2022, in New York City. Photo: Roy Rochlin/Getty Images for Unfinished Live (Getty Images)

Frank McCourt, the billionaire real estate mogul and former owner of the Los Angeles Dodgers, is currently working on a bid to buy TikTok, according to reports from several reputable news outlets. And while it remains to be seen whether TikTok’s parent company ByteDance will agree to a sale to anyone, McCourt’s background in utopian tech advocacy makes him an interesting figure to enter the race.

The U.S. Congress passed legislation in March that will force TikTok to be sold or face a total ban in the U.S., ostensibly over national security concerns. ByteDance is based in China and bipartisan hawks of the New Cold War insist Beijing is capable of monitoring and manipulating data on TikTok, supposedly brainwashing the 170 million Americans who currently use the app.

And that’s where potential buyers now come in, including investor groups led by people like former Treasury Secretary Steve Mnuchin, reality show host Kevin O’Leary, and now Frank McCourt.

“We want all the capital to be values-aligned [around] a new and better version of the internet, where individuals are respected and they own and control their identity and their data,” McCourt told Semafor.

McCourt’s rather utopian vision of the internet isn’t just the ramblings of a billionaire kook. He created an initiative in 2021 called Project Liberty that advocates for open internet protocols and has the backing of some big names in the world of technology. Tim Berners-Lee, the creator of the web, is quoted in Semafor’s latest article praising McCourt, saying that he will, “embrace the critical values of privacy, data sovereignty, and user mental health.”

McCourt has also written a book, titled Our Biggest Fight: Reclaiming Liberty, Humanity, and Dignity in the Digital Age, released in March, laying out his case for humanizing the internet. It starts, McCourt insists, by reimagining the infrastructure of the web with new open protocols.

But the big question among all of this: Will ByteDance even sell TikTok to American investors? At this point, it seems unlikely. TikTok filed a lawsuit last week to block the legislation on First Amendment grounds and the tech company makes a pretty compelling case. With roughly half the U.S. population currently using the app, it would indeed be chilling to the speech of millions if TikTok was suddenly taken away.

But as we all know, laws are fake and any court in the country can rationalize the most hypocritical ruling as being a matter of principle. The U.S. spent the past two decades shaming other countries for banning American websites when other nations said they had national security concerns. Now it’s our turn to ban apps we don’t like, simply because we got outplayed at our own game. Whether guys like McCourt can snap up TikTok amid all this confusion remains to be seen.
 

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TikTok says US ban is inevitable without a court order blocking law​

By David Shepardson

June 20, 20243:57 PM EDTUpdated 2 hours ago

Illustration shows U.S. flag and TikTok logo

U.S. flag is placed on a TikTok logo in this illustration taken March 20, 2024. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights

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  • Summary
  • Companies



  • ByteDance argues divestiture is not possible technologically, commercially or legally
  • TikTok claims the law violates Americans' free speech rights
  • TikTok has spent over $2 billion on efforts to protect U.S. user data


WASHINGTON, June 20 (Reuters) - TikTok and Chinese parent ByteDance on Thursday urged a U.S. court to strike down a law they say will ban the popular short video app in the United States on Jan. 19, saying the U.S. government refused to engage in any serious settlement talks after 2022.

Legislation signed in April by President Joe Biden gives ByteDance until Jan. 19 next year to divest TikTok's U.S. assets or face a ban on the app used by 170 million Americans. ByteDance says a divestiture is "not possible technologically, commercially, or legally."

The U.S. Court of Appeals for the District of Columbia will hold oral arguments on lawsuits filed by TikTok and ByteDance along with TikTok users on Sept. 16. TikTok's future in the United States may rest on the outcome of the case which could impact how the U.S. government uses its new authority to clamp down on foreign-owned apps.

"This law is a radical departure from this country’s tradition of championing an open Internet, and sets a dangerous precedent allowing the political branches to target a disfavored speech platform and force it to sell or be shut down," ByteDance and TikTok argue in asking the court to strike down the law.

Driven by worries among U.S. lawmakers that China could access data on Americans or spy on them with the app, the measure was passed overwhelmingly in Congress just weeks after being introduced.

Lawyers for a group of TikTok users who have sued to prevent the app from being banned said the law would violate their free speech rights. In a filing on Thursday, they argued it is clear there are no imminent national security risks because the law "allows TikTok to continue operating through the rest of this year -- including during an election that the very president who signed the bill says is existential for our democracy."

TikTok says any divestiture or separation - even if technically possible - would take years and it argues that the law runs afoul of Americans' free speech rights.

Further, it says the law unfairly singles out TikTok for punitive treatment and "ignores many applications with substantial operations in China that collect large amounts of U.S. user data, as well as the many U.S. companies that develop software and employ engineers in China."

ByteDance recounted lengthy negotiations between the company and the U.S. government that it says abruptly ended in August 2022. The company also made public a redacted version of a 100-plus page draft national security agreement to protect U.S. TikTok user data and says it has spent more than $2 billion on the effort.

The draft agreement included giving the U.S. government a "kill switch" to suspend TikTok in the United States at the government’s sole discretion if the company did not comply with the agreement and says the U.S. demanded that TikTok's source code be moved out of China.

"This administration has determined that it prefers to try to shut down TikTok in the United States and eliminate a platform of speech for 170 million Americans, rather than continue to work on a practical, feasible, and effective solution to protect U.S. users through an enforceable agreement with the U.S. government," TikTok lawyers wrote the Justice Department in an April 1 email made public on Thursday.

The Justice Department declined to comment on the email but said last month the law "addresses critical national security concerns in a manner that is consistent with the First Amendment and other constitutional limitations." It said it would defend the legislation in court.

In 2020, then-President Donald Trump was blocked by the courts in his bid to ban TikTok and Chinese-owned WeChat, a unit of Tencent (0700.HK)

, opens new tab in the United States.

The White House says it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok. Earlier this month, Trump joined TikTok and has recently raised concerns about a potential ban.

The law prohibits app stores like those of Apple (AAPL.O)

, opens new tab and Alphabet's (GOOGL.O) , opens new tab Google from offering TikTok. It also bars internet hosting services from supporting TikTok unless it is divested by ByteDance.
 

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Trump says 'I'm for TikTok' as potential US ban looms​

By David Shepardson

July 16, 20247:36 PM EDTUpdated a day ago

A picture of U.S. President Donald Trump is seen on a smartphone in front of displayed Tik Tok and WeChat logos in this illustration

A picture of U.S. President Donald Trump is seen on a smartphone in front of displayed Tik Tok and WeChat logos in this illustration taken September 18, 2020. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

WASHINGTON, July 16 (Reuters) - Republican presidential candidate Donald Trump said he supports TikTok even as a potential ban looms if Chinese-parent company ByteDance fails to divest the short video app's U.S. assets.

"I’m for TikTok because you need competition. If you don’t have TikTok, you have Facebook and Instagram," Trump told Bloomberg BusinessWeek in an interview posted Tuesday. Trump previously called TikTok, which is used by 170 million Americans, a threat but then joined TikTok last month.

Trump, who has criticized Meta Platforms-owned Facebook and Instagram (META.O), opens new tab for suspending him for two years in the wake of the deadly Capitol Hill riot on Jan. 6, 2021, told an interviewer in June he would never support a TikTok ban, opens new tab.

TikTok declined to comment. As president, Trump tried to ban TikTok and Chinese-owned WeChat in 2020 but the move was blocked by the courts. In June 2021, President Joe Biden withdrew a series of Trump-era executive orders that sought to ban WeChat and TikTok.

Trump holds a majority stake in social media company Trump Media and Technology Group (DJT.O), opens new tab that operates rival network Truth Social. Trump Media has a $7 billion market cap despite quarterly revenue of around $770,000 - comparable to two U.S. Starbucks shops.

In September, a U.S. appeals court will hold oral arguments on legal challenges to a new law requiring China-based ByteDance to divest TikTok's U.S. assets by Jan. 19 or face a ban.

The hearing before the U.S. Court of Appeals for the District of Columbia will put the fate of TikTok in the middle of the final weeks of the 2024 presidential election.

Signed by Biden on April 24, the law gives ByteDance until Jan. 19 to sell TikTok or face a ban. The White House says it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok. Biden's campaign joined TikTok in February.

Driven by worries among U.S. lawmakers that China could access data on Americans or spy on them with the app, the measure was passed overwhelmingly in Congress in April just weeks after being introduced.
 

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"Something else is at play" —​



US can’t ban TikTok for security reasons while ignoring Temu, other apps, TikTok argues​



TikTok's survival in the US may depend on an appeals court ruling this December.​


Ashley Belanger - 9/16/2024, 5:23 PM

Andrew J. Pincus, attorney for TikTok and ByteDance, leaves the E. Barrett Prettyman US Court House with members of his legal team as the US Court of Appeals hears oral arguments in the case <em>TikTok Inc. v. Merrick Garland</em> on September 16 in Washington, DC.

Enlarge / Andrew J. Pincus, attorney for TikTok and ByteDance, leaves the E. Barrett Prettyman US Court House with members of his legal team as the US Court of Appeals hears oral arguments in the case TikTok Inc. v. Merrick Garland on September 16 in Washington, DC.
Kevin Dietsch / Staff | Getty Images News

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The fight to keep TikTok operating unchanged in the US reached an appeals court Monday, where TikTok and US-based creators teamed up to defend one of the world's most popular apps from a potential US ban.

TikTok lawyer Andrew Pincus kicked things off by warning a three-judge panel that a law targeting foreign adversaries that requires TikTok to divest from its allegedly China-controlled owner, ByteDance, is "unprecedented" and could have "staggering" effects on "the speech of 170 million Americans."

Pincus argued that the US government was "for the first time in history" attempting to ban speech by a specific US speaker—namely, TikTok US, the US-based entity that allegedly curates the content that Americans see on the app.

The government justified the law by claiming that TikTok may in the future pose a national security risk because updates to the app's source code occur in China. Essentially, the US is concerned that TikTok collecting data in the US makes it possible for the Chinese government to both spy on Americans and influence Americans by manipulating TikTok content.

But Pincus argued that there's no evidence of that, only the FBI warning "about the potential that the Chinese Communist Party could use TikTok to threaten US homeland security, censor dissidents, and spread its malign influence on US soil." And because the law carves out China-owned and controlled e-commerce apps like Temu and Shein—which a US commission deemed a possible danger and allegedly process even more sensitive data than TikTok—the national security justification for targeting TikTok is seemingly so under-inclusive as to be fatal to the government's argument, Pincus argued.

Jeffrey Fisher, a lawyer for TikTok creators, agreed, warning the panel that "what the Supreme Court tells us when it comes to under-inclusive arguments is [that they're] often a signal that something else is at play."

Daniel Tenny, a lawyer representing the US government, defended Congress' motivations for passing the law, explaining that the data TikTok collects is "extremely valuable to a foreign adversary trying to compromise the security" of the US. He further argued that a foreign adversary controlling "what content is shown to Americans" is just as problematic.

Rather than targeting Americans' expression on the app, Tenny argued that because ByteDance controls TikTok's source code, the speech on TikTok is not American speech but "expression by Chinese engineers in China." This is the "core point" that the US hopes the appeals court will embrace, that as long as ByteDance oversees TikTok's source code, the US will have justified concerns about TikTok data security and content manipulation. The only solution, the US government argues, is divestment.

TikTok has long argued that divestment isn't an option and that the law will force a ban. Pincus told the court that the "critical issue" with the US government's case is that the US does not have any evidence that TikTok US is under Chinese control. Because the US is only concerned about some "future Chinese control," the burden that the law places on speech must meet the highest standard of constitutional scrutiny. Any finding otherwise, Pincus warned the court, risked turning the First Amendment "on its head," potentially allowing the government to point to foreign ownership to justify regulating US speech on any platform.

But as the panel explained, the US government had tried for two years to negotiate with ByteDance and find through Project Texas a way to maintain TikTok in the US while avoiding national security concerns. Because every attempt to find a suitable national security arrangement has seemingly failed, Congress was potentially justified in passing the law, the panel suggested, especially if the court rules that the law is really just trying to address foreign ownership—not regulate content. And even though the law currently only targets TikTok directly, the government could argue that's seemingly because TikTok is so far the only foreign adversary-controlled company flagged as a potential national security risk, the panel suggested.

TikTok insisted that divestment is not the answer and that Congress has made no effort to find a better solution. Pincus argued that the US did not consider less restrictive means for achieving the law's objectives without burdening speech on TikTok, such as a disclosure mechanism that could prevent covert influence on the app by a foreign adversary.

But US circuit judge Neomi Rao pushed back on this, suggesting that disclosure maybe isn't "always" the only appropriate mechanism to block propaganda in the US—especially when the US government has no way to quickly assess constantly updated TikTok source code developed in China. Pincus had confirmed that any covert content manipulation uncovered on the app would only be discovered after users were exposed.

"They say it would take three years to just review the existing code," Rao said. "How are you supposed to have disclosure in that circumstance?"

"I think disclosure has been the historic answer for covert content manipulation," Pincus told the court, branding the current law as "unusual" for targeting TikTok and asking the court to overturn the alleged ban.

The government has given ByteDance until mid-January to sell TikTok, or else the app risks being banned in the US. The appeals court is expected to rule by early December.

TikTok is not like other apps, creators argued​


The court pushed back on Pincus' characterization of the law as unconstitutionally targeting TikTok US, suggesting that no speech would seemingly be burdened if TikTok continued operating after divestiture from Chinese-controlled ownership. Theoretically, users could continue using the app as they had before, the panel suggested.

In response, Pincus argued that divestiture is impossible.

"This isn't just about divestiture," Pincus told the court. "This is about a ban."

But even if divestiture were somehow possible, Pincus argued that requiring it would still burden speech because altering TikTok's algorithm would make the content different for users.

Fisher similarly argued that there is no interchangeable platform for TikTok users and that users voluntarily choose to share data with TikTok. He cited one client, a TikTok user with millions of followers, with fewer than 100 followers on YouTube. That user quickly learned that not only are the audiences on other platforms vastly different, Fisher argued, but so are the creator tools, which means "the nature of the speech is different" on TikTok.

Defending Americans choosing TikTok above other platforms, Fisher said that Americans have a "fundamental interest" in working with the publisher or editor of their choice, which Congress is allegedly trying to take away. Because the law is allegedly motivated to suppress expression, Fisher said that there is no way for the US government to argue around the First Amendment successfully. Law professors have previously suggested that TikTok's First Amendment case is strong.

"American speakers are silenced" or "consistently affected by this law, so you can't get out of the First Amendment problem," Fisher argued. "Even in a world where you're dealing with totally unprotected speech," if the government is "choosing, selecting, and suppressing some speech based on viewpoint, but not another," the law requires strict constitutional scrutiny, Fisher argued, which the law allegedly cannot survive.

Tenny responded by saying that it's still unclear what ByteDance would actually do if the law is enforced. ByteDance could "have a change of heart," Tenny suggested, and sell off TikTok US. He also argued that if ByteDance was shut down due to some other violation, like tax fraud, TikTok creators would not be able to raise a First Amendment challenge.

Judges ask: What about in war times?​


It's unclear which side the panel found more persuasive. Throughout the hearing, the panel raised several hypotheticals to weigh both sides' arguments, perhaps most notably pondering if the law's provisions would potentially be permissible in war times.

Pincus conceded that perhaps if China and the US were at war, the US might be able to justify a law burdening speech, but the same issues with the law's under-inclusivity would arise in that heightened scenario. Fisher agreed that he could "imagine" that the law could escape strict constitutional scrutiny in "the heat of war" but reminded the panel that "we're not at war."

"The government still has to come in and explain in reasonable terms why it singled out one particular collector of data and excluded everybody else," Fisher suggested.
 

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TikTok could shut down unless Supreme Court blocks or delays U.S. ban​




Updated on: January 9, 2025 / 7:47 PM EST / CBS/AP



In one of the most important cases of the social media age, free speech and national security collide at the Supreme Court on Friday in arguments over the fate of TikTok, a wildly popular digital platform that roughly half the people in the United States use for entertainment and information.

TikTok could shut down the social media site in the U.S. by Jan. 19 unless the Supreme Court strikes down or otherwise delays the effective date of a law aimed at forcing TikTok's sale by its Chinese parent company.

"Absent such relief, the Act will take effect on January 19, 2025," TikTok said in a Dec. 9 legal filing. "That would shut down TikTok—one of the Nation's most popular speech platforms — for its more than 170 million domestic monthly users on the eve of a presidential inauguration."


Working on a tight deadline, the justices also have before them a plea from President-elect Donald Trump, who has dropped his earlier support for a ban, to give him and his new administration time to reach a "political resolution" and avoid deciding the case. It's unclear if the court will take the Republican president-elect's views — a highly unusual attempt to influence a case — into account.

TikTok and China-based ByteDance, as well as content creators and users, argue the law is a dramatic violation of the Constitution's free speech guarantee.

"Rarely if ever has the court confronted a free-speech case that matters to so many people," lawyers for the users and content creators wrote. Content creators are anxiously awaiting a decision that could upend their livelihoods and are eyeing other platforms.



The case represents another example of the court being asked to rule about a medium with which the justices have acknowledged they have little familiarity or expertise, though they often weigh in on meaty issues involving restrictions on speech.

How TikTok could avoid a ban​


TikTok has several pathways to avoid a ban outside of Supreme Court intervention, experts told CBS News.

Trump could take action once he's in office and ask the Justice Department not to enforce the law or prosecute tech companies, like Apple and Google, who host TikTok in their app stores. Trump also has the authority to issue a 90-day delay of the law after Jan. 19, though he would have to certify to Congress that "evidence of significant progress" toward a divestiture has taken place.

TikTok won't disappear from Americans' phones on Jan. 19 if the law takes effect. However, users would not be able to update the app and those who don't already have it would not be able to download it.

The Biden administration, defending the law that President Joe Biden signed in April after it was approved by wide bipartisan majorities in Congress, contends that "no one can seriously dispute that (China's) control of TikTok through ByteDance represents a grave threat to national security."

Officials say Chinese authorities can compel ByteDance to hand over information on TikTok's U.S. patrons or use the platform to spread or suppress information.

But the government "concedes that it has no evidence China has ever attempted to do so," TikTok told the justices, adding that limits on speech should not be sustained when they stem from fears that are predicated on future risks.

In December, a panel of three appellate judges, two appointed by Republicans and one by a Democrat, unanimously upheld the law and rejected the First Amendment speech claims.

Trump urges court to pause​


Adding to the tension, the court is hearing arguments just nine days before the law is supposed to take effect and 10 days before a new administration takes office.

In language typically seen in a campaign ad rather than a legal brief, lawyers for Trump have called on the court to temporarily prevent the TikTok ban from going into effect but refrain from a definitive resolution.

"President Trump alone possesses the consummate dealmaking expertise, the electoral mandate, and the political will to negotiate a resolution to save the platform while addressing the national security concerns expressed by the Government — concerns which President Trump himself has acknowledged," D. John Sauer, Trump's choice to be his administration's top Supreme Court lawyer, wrote in a legal brief filed with the court.

Trump took no position on the underlying merits of the case, Sauer wrote. Trump's campaign team used TikTok to connect with younger voters, especially male voters, and Trump met with TikTok CEO Shou Zi Chew at Trump's Mar-a-Lago club in Palm Beach, Florida, in December. He has 14.7 million followers on TikTok.

The justices have set aside two hours for arguments, and the session likely will extend well beyond that. Three highly experienced Supreme Court lawyers will be making arguments. Solicitor General Elizabeth Prelogar will present the Biden administration's defense of the law, while Trump's solicitor general in his first administration, Noel Francisco, will argue on behalf of TikTok and ByteDance. Stanford Law professor Jeffrey Fisher, representing content creators and users, will be making his 50th high court argument.

If the law takes effect, Trump's Justice Department will be charged with enforcing it. Lawyers for TikTok and ByteDance have argued that the new administration could seek to mitigate the law's most severe consequences.

But they also said that a shutdown of just a month would cause TikTok to lose about one-third of its daily users in the U.S. and significant advertising revenue.

As it weighs the case, the court will have to decide what level of review it applies to the law. Under the most searching review, strict scrutiny, laws almost always fail. But two judges on the appellate court that upheld the law said it would be the rare exception that could withstand strict scrutiny.

TikTok, the app's users and many briefs supporting them urge the court to apply strict scrutiny to strike down the law.

But the Democratic administration and some of its supporters cite restrictions on foreign ownership of radio stations and other sectors of the economy to justify the effort to counter Chinese influence in the TikTok ban.

A decision could come within days.

Editor's note: This story has been changed to clarify that TikTok could shut down on Jan. 19 if the Supreme Court rules against its request for a temporary injunction that would overturn or delay a law that could lead to a U.S. ban.
 
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