Monday, April 29, 2024

Biden signs bill that could ban TikTok into law, setting up legal battle

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In private conversations with Johnson, Biden and White House officials emphasized the stakes for Europe if Ukraine were to fall to Russia. Congress passed the measure citing national security concerns because of TikTok’s Chinese ties. Both lawmakers and security experts have said there are risks that the Chinese government could lean on ByteDance for access to sensitive data belonging to its 170 million U.S. users or to spread propaganda. White House officials came to view Johnson as a direct and honest actor throughout the negotiations, according to a senior administration official. And he knew there was plenty of Republican support for further Ukraine funding.

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"Congress is not acting to punish ByteDance, TikTok or any other individual company," said Democratic Sen. Maria Cantwell, who chairs the Senate Commerce Committee, in remarks on the Senate floor Tuesday afternoon. Deeply reported insights into legislation, politics and policy from Sacramento, Washington and beyond. Steve Ricchetti, counselor to the president, and legislative affairs director Shuwanza Goff were in regular contact with Johnson. Goff and Johnson’s senior staff also spoke frequently as a deal came into focus. In a daily meeting convened by White House Chief of Staff Jeff Zients, the president’s top aides — seated around a big oval table in Zients’ office — would brainstorm possible ways to better make the case about Ukraine’s dire situation in the absence of aid.

TikTok’s Day in Court

As for the timing of the rollout for specific unincorporated areas, it was left to the Board of Supervisors. National intelligence laws in China would require ByteDance to hand over data on Americans if authorities there sought it, but TikTok says it has never received such a request. Last month, the House passed a bill to compel TikTok to find a buyer, or face a nationwide ban, but the effort stalled in the Senate.

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The European anxiety was heightened in February when Trump in a campaign speech warned NATO allies that he “would encourage” Russia “to do whatever the hell they want” to countries that don’t meet defense spending goals if he returns to the White House. Senate Minority Leader Mitch McConnell suggested that the delay in funding by his fellow Republicans could have a lasting impact on Ukraine’s hopes of winning the war. Russia now appears focused on Kharkiv, Ukraine’s second largest city. Russian forces have exploited air defense shortages in the city, pummeling the region’s energy infrastructure, and looking to shape conditions for a potential summer offensive to seize the city.

The administration and a bipartisan group of lawmakers have called the social media site a growing national security concern. Tucked into the measure is a provision that gives TikTok’s Beijing-based parent company, ByteDance, nine months to sell it or face a nationwide prohibition in the United States. The president can grant a one-time extension of 90 days, bringing the timeline to sell to one year, if he certifies that there’s a path to divestiture and “significant progress” toward executing it. TikTok already has a strong record in similar First Amendment battles. TikTok’s case will probably lean on the First Amendment, legal experts said. The company is expected to argue that a forced sale could violate its users’ free speech rights because a new owner could change the app’s content policies and reshape what users are able to freely share on the platform.

The White House also sought to accommodate Johnson and his various asks. For instance, administration officials at the speaker’s request briefed Reps. Chip Roy (R-Texas) and Ralph Norman (R-S.C.), two hard-right members who were persistent antagonists of Johnson. On explicit orders from Biden, White House officials also avoided directly attacking Johnson over the stalled aid — a directive the president repeatedly instilled in his senior staff.

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It is where one-third of young people get their news, according to Pew Research Center. President Biden has signed a law that gives ByteDance up to a year to fully divest from TikTok, or face a nationwide ban. All the while, senior Biden officials frequently updated McConnell and key House Republican committee leaders, including Reps. Michael McCaul of Texas and Michael R. Turner of Ohio. Trump’s comments came at a key moment in the debate over Ukraine spending. Many European leaders have long been nervous that a second Trump presidency would mean decreased U.S. support for Ukraine and NATO.

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But some have pushed back, including Democratic Sen. Edward Markey of Massachusetts. He said on the Senate floor on Tuesday that there is "no credible evidence" that TikTok presents a real national security threat just because its parent company is based in China. The legislation gave TikTok a six-month window to find a buyer, which some senators said was too little time. Any company, or set of investors, angling to purchase TikTok would have to receive the blessing of the Chinese government, and officials in Beijing have strongly resisted a forced sell. Far-right Republicans have also adamantly opposed sending more money for Ukraine.

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Private equity firms or other investors could form a group to raise enough money to buy TikTok. Former Treasury Secretary Steven Mnuchin said in March that he wanted to build such a group. And anyone who can pony up the money still has to pass muster with the U.S. government, which needs to sign off on any purchase. Other groups, like the American Civil Liberties Union, which has been a vocal opponent of the bill, may also join the legal fight. A spokeswoman for the A.C.L.U. said on Tuesday that the group was still weighing its role in potential litigation challenging the law.

The law stipulates that ByteDance must sell its stake in TikTok in 12 months under the threat of being shut down. Still, the law is not expected to cause any immediate disruption to TikTok, as a forthcoming legal challenge, and various hurdles to selling the app, will most likely cause months of delay. For example, U.S. officials this month laid out intelligence findings that showed China has surged sales to Russia of machine tools, microelectronics and other technology that Moscow in turn is using to produce missiles, tanks, aircraft and other weaponry.

Professors at public universities challenged the ban in court last year, saying it blocked them from doing research on the app. A federal judge upheld the state ban in December, finding it was a “reasonable restriction” in light of Texas’ concerns and the narrow scope affecting only state employees. President Biden has signed the bill to force a sale of the video app or ban it. Now the law faces court challenges, a shortage of qualified buyers and Beijing’s hostility.

In a video posted to the platform soon after Biden signed the bill, TikTok CEO Shou Zi Chew said he is confident TikTok would win in court, adding that users should not expect issues with the app in the meantime. Biden also signed an initial aid package of military assistance and said shipment would begin in the “next few hours” — the first tranche from about $61 billion allocated for Ukraine, according to U.S. officials. It is expected to include air defense capabilities, artillery rounds, armored vehicles and other weapons to shore up Ukrainian forces who have seen morale sink as the Russian military has racked up win after win. Only one narrower TikTok restriction has survived a court challenge. The governor of Texas announced a ban of the app on state government devices and networks in 2022 because of its Chinese ownership and related data privacy concerns.

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The government will probably need to make a strong case that ByteDance’s ownership of TikTok makes it necessary to limit speech because of national security concerns, the legal experts said. The measure is likely to face legal challenges, as well as possible resistance from Beijing, which could block the sale or export of the technology. It’s also unclear who has the resources to buy TikTok, since it will carry a hefty price tag.

Breaking off just the U.S. portion of TikTok could prove particularly challenging. The app's recommendation algorithm, which figures out what users like and serves up content, is key to the success of the app. The legislation prohibits any connection between ByteDance and TikTok after a sale. Yet TikTok employees use ByteDance software in their communications, and the company’s employees are global, with executives in Singapore, Dublin, Los Angeles and Mountain View, Calif.

A new push, this time attaching the divest-or-be-banned provision to foreign aid, fasted-tracked the proposal. It mirrors last month's attempt, but it extends the sell-by deadline, now giving TikTok nine months to find a buyer, with the option of a three-month extension if a potential acquisition is in play. Chinese officials have placed content-recommendation algorithms on what is known as an export-control list, meaning the government has additional say over how the technology is ever sold. The measure was tucked into a bill providing foreign aid for Israel, Ukraine and Taiwan.

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