👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Analysis-TikTok bill sets up fight over free speech protections of U.S. Constitution

Published 03/14/2024, 04:17 PM
Updated 03/14/2024, 04:22 PM
© Reuters. A person arrives at the offices of Tik Tok after the U.S. House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the U.S. assets of the short-video app or face a ban, in Culver Cit
META
-

By Mike Scarcella

(Reuters) - U.S. lawmakers want to force a sale of TikTok by its Chinese owner or ban it from app stores, which legal experts said would set up a showdown with the social media company over the U.S. Constitution's First Amendment free speech protections.

While the bill itself does not say anything about speech, the proposal has alarmed civil rights advocates, TikTok and users of the app, all of whom could sue to block the proposal if it becomes law.

Legal experts said opponents of the law could argue it infringes free speech by preventing users from expressing themselves and businesses from using the app to promote their products. TikTok has already beaten back a similar attempt to ban its use in the U.S. state of Montana, although the state is appealing that ruling.

Jameel Jaffer, executive director of the Knight First Amendment Institute called the measure "censorship — plain and simple" in a letter that his group and others sent this week to lawmakers.

A court that agrees with that assessment would apply strict scrutiny, meaning the government would have to prove it has not violated speech rights. This hurdle would make it more likely for the law to be blocked.

The bill's promoters have argued it has nothing to do with speech but merely regulates a commercial activity by requiring TikTok's Beijing-based owner ByteDance to sell the U.S. operations, denying China easy access to users' data.

The bill had strong bipartisan support in the U.S. House but still must clear the U.S. Senate, which could rework the proposal. U.S. President Joe Biden, whose re-election campaign uses TikTok, has said he supports the proposal.

If the bill becomes law, and users and TikTok sue to block enforcement, a key part of any legal challenge will be the court's view of the standard applied in reviewing the law.

Legal experts said if the government winds up fighting a First Amendment case under the strict scrutiny standard, it must prove national security or some other compelling government interest is at stake. It will also have to prove the law was "narrowly tailored" to address that particular issue.

Critics spot a weakness in the government's potential case on this point: Washington thus far has seemed unconcerned about abuse of users' data by other social media platforms.

Plenty of companies such as Meta (NASDAQ:META) Platform'sFacebook collect, store and share users' data, but the government has never treated that activity as a national security threat or enacted data protections.

The Electronic Frontier Foundation's David Greene said that if the U.S. were really concerned about China and data privacy, it would push legislation that applies to all social media companies, not just TikTok.

The government would need to convince a court the measure is not a limitation on speech but a regulation of a commercial transaction and a way to protect national security.

The government would argue that TikTok could continue to operate and U.S. users continue to use it, just not under Chinese ownership, so the law's effect on speech was "incidental" and permitted.

In November, a U.S. federal judge in Montana blocked Montana’s effort to ban TikTok within the state. TikTok and some users filed a pair of First Amendment lawsuits challenging the proposed ban, which had been set to take effect in January.

© Reuters. A person arrives at the offices of Tik Tok after the U.S. House of Representatives overwhelmingly passed a bill that would give TikTok's Chinese owner ByteDance about six months to divest the U.S. assets of the short-video app or face a ban, in Culver City, California, U.S., March 13, 2024.  REUTERS/Mike Blake

U.S. District Judge Donald Molloy issued a preliminary injunction halting the state’s ban, saying it "violates the Constitution in more ways than one" and "oversteps state power." Montana, backed by Virginia and 18 other states, is challenging the order on appeal.

"The law is not narrowly tailored, nor does it leave open any alternative channels for targeted communication of information," Molloy wrote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.