TikTok fights back against law requiring sale of U.S. arm or face shutdown

  • TikTok files petition with U.S. Court of Appeals to overturn law requiring sale of U.S. arm or face ban
  • Law violates First Amendment right to free speech, says TikTok
  • TikTok argues that divestiture is not possible commercially, technologically, or legally
  • If law isn’t overturned, TikTok will be forced to shut down by January 19, 2025
  • No evidence that TikTok has been used by China to spy on Americans or spread propaganda

TikTok has filed a petition with the U.S. Court of Appeals, asking it to declare as unconstitutional the recently passed law that requires ByteDance, TikTok’s China-based parent company, to sell the U.S. arm of the short-video service or face a ban. The law, known as the Protecting Americans From Foreign Adversary Controlled Applications Act, offers ByteDance two choices: sell U.S. TikTok to a U.S. buyer or shut down. TikTok argues that the law violates the First Amendment right to free speech and that divestiture is not possible commercially, technologically, or legally. If the law isn’t overturned, TikTok will be forced to shut down by January 19, 2025, silencing the 170 million Americans who use the platform. TikTok also points out that there is no evidence that the platform has been used by China to spy on Americans or spread propaganda.

Factuality Level: 7
Factuality Justification: The article provides a detailed overview of TikTok’s legal battle in the U.S. and includes statements from TikTok regarding the law’s constitutionality. It presents both sides of the argument and includes relevant information about the law and its implications. However, the article lacks in-depth analysis and verification of the claims made by TikTok, such as the potential national security threats posed by the app.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of TikTok’s legal battle and the implications of the recently passed law. It includes quotes from TikTok’s petition and explains the company’s arguments against the law. The article stays on topic and supports its claims with examples and statements from TikTok. However, it lacks a deeper exploration of the potential consequences of the law and does not provide a balanced view by including perspectives from the law’s proponents.
Financial Relevance: Yes
Financial Markets Impacted: The article does not provide information on specific financial markets or companies impacted.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to the legal and regulatory challenges faced by TikTok, a popular short-video service owned by ByteDance, its China-based parent company. While the article discusses the potential shutdown of TikTok in the US due to a recently passed law, it does not describe any extreme event or its impact. Therefore, the presence of an extreme event and its impact rating are null.
Private Companies: TikTok
Key People: Eric J. Savitz (Writer)

Reported publicly: www.marketwatch.com