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Supreme Court case begins, billionaires bid for apps

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The U.S. Supreme Court will begin arguments on Friday in a case that will decide the fate of short-form video app TikTok in the country.

TikTok and its Chinese parent company ByteDance have called on a court to halt a law that would have required the divestiture of the app's U.S. operations by January 19.

The bill passed Congress last year with strong bipartisan support and was signed by outgoing Democratic President Joe Biden, whose administration defended it in the case.

Also AF: Meta dropped fact-checking in the U.S. before Trump took office

ByteDance and TikTok insist that selling their U.S. operations is out of the question because it would be a complex and costly process that would also be banned by the Chinese government.

As a result, Douyin Will cease U.S. operations on January 19 – The day before President Donald Trump's inauguration, the app says.

Its lawyers said a ban on the app would violate the free speech rights not only of TikTok and its 170 million U.S. users, but of “the entire country.”

TikTok and ByteDance said in a filing that the platform represents “one of the most important speech platforms in the United States,” adding that the law “conflicts with the First Amendment.”

Lawyers for some TikTok users said that “the courts rarely encounter free speech cases that are important to so many people.” They also filed lawsuits in the court.

Several free speech advocates in the United States have made similar arguments, expressing concerns that the app could be banned.

“This is the most significant free speech case in at least a generation,” former U.S. national security and intelligence official Timothy Edgar told Reuters.

“If we consider that TikTok has 170 million monthly active users in the United States, the amount of free speech at risk is the largest in a Supreme Court case in U.S. history,” added Edgar, who now teaches cybersecurity at Brown University , adding brief support for TikTok in the case.

Consortium bids to buy apps

Meanwhile, the day before the Supreme Court hearing begins, US billionaire Frank McCourt's Project Liberty and its consortium of The People's Bid partners said they proposed to make a formal bid to ByteDance to acquire TikTok's US assets.

The consortium did not disclose the value of the proposal but said the financial ability to complete the deal includes expressions of interest in sufficient equity from investors, including major private equity funds, family offices and high-net-worth individuals, as well as being one of the largest U.S. banks. Debt financing.

McCourt and his company Project Liberty formed a consortium last year to acquire the US social media platform TikTok.

“By keeping the platform alive and avoiding a ban without relying on the current TikTok algorithm, millions of Americans can continue to enjoy the platform. We look forward to working with ByteDance, President-elect Trump, and the incoming administration to Complete the deal.

Trump factor

It remains to be seen whether incoming President Trump will allow the app to be banned in the United States. Trump has previously stated He has a “warm place” For TikTok in his heart.

The app was seen as key to building a massive base of young voters for Trump and actually played a key role in his victory.

Trump promised on the campaign trail that he would not allow the app to be banned. Last month, he also called on the Supreme Court Deadline extended to January 19 The divestment was intended to give the incoming government “the opportunity to seek a political solution to the issues in this case”.

Meanwhile, the U.S. Department of Justice urged the court to reject the request.

The Justice Department said the law targets foreign adversaries' control of the app, not protected speech, and that TikTok could continue to operate as is if it were freed from China's control.

The department told the court in a filing that no one denies that China “seeks to harm U.S. interests by collecting sensitive data about Americans and engaging in covert and malign influence operations,” calling the app a “powerful tool for espionage.” tool”.

Trump's support for TikTok is also at odds with his fellow Republicans, many of whom support the ban.

Those differing views raise the stakes on the Supreme Court, which has a 6-3 conservative majority.

  • Reuters, with additional editing and input by Vishakha Saxena

Also read:

Can Donald Trump exempt TikTok from US ban?

ByteDance “prefers to shut down TikTok in the US” if legal fight fails

The United States says the forced sale of TikTok is for security rather than free speech

'China won't allow it': TikTok compares spinoff to chip ban

Donald Trump may try to block US ban on TikTok – WaPo

Trump says he will ‘never ban TikTok’ if elected – New York Post

TikTok comes under U.S. legal crackdown for 'harmful' impact on children

U.S. polls show that nearly half of Generation Z wish TikTok had never been invented

EU MP: TikTok CEO 'must explain role in Romanian polls' – Politico

Canada orders TikTok to close offices in country – Reuters

Visakha Saxena

Vishakha Saxena is Asia Finance's multimedia and social media editor. She has worked as a digital journalist since 2013 and is an experienced writer and multimedia producer. As a trader and investor, she is interested in the new economy, emerging markets, and the intersection of finance and society. You can write to her: [email protected]

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