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A new law banning TikTok if it doesn’t divorce its parent company is “obviously unconstitutional,” TikTok Inc. and ByteDance argue in a new federal court filing.

The Protecting Americans From Foreign Adversary Controlled Applications Act, passed and signed into law late last month, singles out ByteDance and its subsidiary TikTok Inc., requiring the former to divest itself of the latter within 270 days. If ByteDance doesn’t, the TikTok app will be banned in the U.S.

Congress is “silencing the 170 million Americans who use [TikTok] to communicate,” and “crafted a two-tiered speech regime” that is unconstitutional, TikTok argues.

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The new law allows a similar ultimatum to be applied to other social media platforms with ties to “foreign adversaries” if the president deems them a threat. But this process requires at least some nominal checks and balances that don’t apply in TikTok’s case. And no other app or company is explicitly named in the new legislation.

“For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than 1 billion people worldwide,” states TikTok’s petition to the U.S. Court of Appeals for the District of Columbia.

The company is asking the court to review the constitutionality of the law, which it argues is both a violation of the First Amendment and an unconstitutional bill of attainder. Bills of attainder, which regulate or punish a particular entity (without the benefit of due process), are barred by the Constitution.

TikTok also argues that the law violates its “rights under the equal protection component of the Fifth Amendment’s Due Process Clause because it singles Petitioners out for adverse treatment without any reason for doing so.” An American Company With American Rights

Opponents of TikTok often argue that as a Chinese company, TikTok is afforded no free speech protections and the First Amendment doesn’t apply here.

This is wrong in two ways.First, because American TikTok users have First Amendment rights which are not in question here.

Second, because TikTok Inc. is a U.S. company. It’s incorporated in California and has its main office there, with additional offices in New York, San Jose, Chicago, and Miami.

TikTok Inc. is a subsidiary of ByteDance, which is incorporated in the Cayman Islands (not China) and its leadership is based in Singapore and the U.S. (not China).

ByteDance was founded in China back in 2012. But today, ByteDance’s foundera Chinese national based in Singaporeonly has a 21 percent ownership stake in the company. Another 21 percent is owned by employees of the company (including around 7,000 Americans, per the petition) and 58 percent is owned by institutional investors, including BlackRock (an American company), General Atlantic (an American company), and Susquehanna International Group (headquartered in Pennsylvania).

It’s hard to pin down TikTok (the platform, not the American company) as belonging to any particular nation. But the idea that it’s purely a “Chinese app” is demonstrably false. A Ban By Any Other Name

TikTok rejects the ideaoften cited by politicians in support of the lawthat this isn’t a ban and therefore isn’t actually censorship.

“Banning TikTok is so obviously unconstitutional, in fact, that even the Act’s sponsors recognized that reality, and therefore have tried mightily to depict the law not as a ban at all, but merely a regulation of TikTok’s ownership,” notes the petition. “They claim that the Act is not a ban because it offers ByteDance a choice: divest TikTok’s U.S. business or be shut down.”

“But in reality, there is no choice,” the company argues. “The ‘qualified divestiture’ demanded by the Act to allow TikTok to continue operating in the United States is simply not possible: not commercially, not technologically, not legally. And certainly not on the 270-day timeline required by the Act.”

The petition lays out multiple reasons why divestiture isn’t feasible, including the fact that the source code is massive and complicated, making “moving all TikTok source code development from ByteDance to a new TikTok owner…impossible as a technological matter.”

“It would take years for an entirely new set of engineers to gain sufficient familiarity with the source code to perform the ongoing, necessary maintenance and development activities for the platform,” states TikTok’s petition. “Moreover, to keep the platform functioning, these engineers would need access to ByteDance software tools, which the Act prohibits.” The petition also notes that “the Chinese government has made clear that it would not permit a divestment of the recommendation engine that is a key to the success of TikTok in the United States.”

“Like the United States, China regulates the export of certain technologies originating there,” notes the petition. “China’s official news agency has reported that under these rules, any sale of recommendation algorithms developed by engineers employed by ByteDance subsidiaries in China, including for TikTok, would require a government license.” The petition notes that “China adopted these enhanced export control restrictions between August and October 2020, shortly after President [Donald] Trump’s August 6, 2020 and August 14, 2020 executive orders targeting TikTok.” No Due Process

Even if divesture could happen, the act “would still be an extraordinary and unconstitutional assertion of power,” TikTok argues. It opens the door to the government simply declaring that companies they don’t like must divest of particular productsincluding platforms for speechor else those products will be banned. “If Congress can do this, it can circumvent the First Amendment by invoking national security and ordering the publisher of any individual newspaper or website to sell to avoid being shut down.”

“By banning all online platforms and software applications offered by ‘TikTok’ and all ByteDance subsidiaries, Congress has made a law curtailing massive amounts of protected speech,” it concludes. But “the government cannot, consistent with the First Amendment, dictate the ownership of newspapers, websites, online platforms, and other privately created speech forums.”

In this case, the lawmakers’ ploy to ban TikTok has been undertaken without a single non-hypothetical finding of danger by Congress, nor any consideration of less restrictive means of allaying any concerns, the company argues.

TikTok Inc. “worked with the government for four years on a voluntary basis to develop a framework to address the government’s concerns,” it points out. As part of this engagement, the company “voluntarily invested more than $2 billion to build a system of technological and governance protectionssometimes referred to as ‘Project Texas’to help safeguard U.S. user data and the integrity of the U.S. TikTok platform against foreign government influence.”

The company also committed to a draft National Security Agreement developed with the Committee on Foreign Investment in the United States. “Congress tossed this tailored agreement aside, in favor of the politically expedient and punitive approach of targeting for disfavor one publisher and speaker (TikTok Inc.), one speech forum (TikTok), and that forum’s ultimate owner (ByteDance Ltd.),” the petition states.

TikTok Inc. and ByteDance are now asking the court to “issue a declaratory judgment that the Act violates the U.S. Constitution” and an order stopping the U.S. Attorney General from enforcing the act. More Sex & Tech News The best technology and kids take: Sundials are ruining the Youth.

From a Roman adaptation of a Greek play, 3rd century BCE, in Krr’s “The Ordered Day” via @ewzucker pic.twitter.com/vRx9TYtKFU

— Ethan Mollick (@emollick) May 7, 2024

Check out Reason’s new Artificial Intelligence issue.

The fight over an Idaho “abortion trafficking” law continues in a federal appeals court.

Alabama’s Attorney General “cannot constitutionally prosecute people for acts taken within the State meant to facilitate lawful out-of-state conduct, including obtaining an abortion,” writes U.S. District Court Judge Myron Thompson, declining to dismiss a case against Attorney General Steve Marshall’s pledge to prosecute people who help Alabama residents obtain out-of-state abortions. Reason’s Emma Camp has more.

Microsoft is building an AI tool to compete with OpenAI’s ChatGPT and Google’s Gemini.

Minnesota “spends $100 million a year to detain about 750 individuals who are deemed ‘likely’ to commit sex offenses,” notes Jacob Sullum. Today’s Image Chinatown, NYC | 2013 (ENB/Reason)

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Jets’ Scheifele misses G7 because of injury

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Jets' Scheifele misses G7 because of injury

Winnipeg forward Mark Scheifele did not play in Game 7 of the Jets’ first-round Stanley Cup playoff series against the St. Louis Blues on Sunday due to an undisclosed injury, coach Scott Arniel said.

Arniel ruled out Scheifele following the team’s morning skate. He was hurt in Game 5 — playing only 8:05 in the first period before exiting — and then did not travel with the Jets to St. Louis for Game 6. Arniel previously had said Scheifele was a game-time decision for Game 7.

Scheifele, 32, skated in a track suit Saturday, and Arniel told reporters the veteran was feeling better than he had the day before. Scheifele, however, was not able to participate in the Jets’ on-ice session by Sunday, quickly indicating he would not be available for the game.

Winnipeg held a 2-0 lead in the series over St. Louis before the Blues stormed back with a pair of wins to tie it, 2-2. The home team has won each game in the best-of-seven series so far.

The Jets’ challenge in closing out St. Louis only increases without Scheifele. Winnipeg already has been dealing with the uneven play of goaltender Connor Hellebuyck, a significant storyline in the series to date. Hellebuyck was pulled in all three of his starts at St. Louis while giving up a combined 16 goals on 66 shots (.758 SV%). In Game 6, Hellebuyck allowed four goals in only 5 minutes, 23 seconds of the second period.

Hellebuyck was Winnipeg’s backbone during the regular season, earning a Hart Trophy and Vezina Trophy nomination for his impeccable year (.925 SV%, 2.00 GAA).

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Stars expect Robertson, Heiskanen back in semis

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Stars expect Robertson, Heiskanen back in semis

Stars coach Pete DeBoer expects to have leading goal scorer Jason Robertson and standout defenseman Miro Heiskanen available in the Western Conference semifinals after both missed Dallas’ first-round series win over the Colorado Avalanche.

Following their thrilling Game 7 comeback victory over the Avalanche on Saturday night, the Stars await the winner of Sunday night’s Game 7 between the Winnipeg Jets and St. Louis Blues. If the Blues win, the Stars will have home-ice advantage in the best-of-seven series.

“I believe you’re going to see them both play in the second round, but I don’t know if it’s going to be Game 1 or Game 3 or Game 5,” DeBoer said after Saturday’s series clincher. “I consider them both day-to-day now, but there’s still some hurdles. It depends on when we start the series, how much time we have between now and Game 1. We’ll have a little better idea as we get closer.”

Robertson, 25, who posted 80 points (35 goals, 45 assists) in 82 games this season, suffered a lower-body injury in the regular-season finale April 16 and was considered week-to-week at the time.

Heiskanen hasn’t played since injuring his left knee in a Jan. 28 collision with Vegas Golden Knights forward Mark Stone. Initially expected to miss three to four months, the 25-year-old defenseman had surgery Feb. 4 and sat out the final 32 games of the regular season. In 50 games, he collected 25 points (five goals, 20 assists) and averaged 25:10 of ice time, which ranked fifth among NHL blueliners.

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

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U.S. crude oil prices fall more than 4% after OPEC+ agrees to surge production in June

Logo of the Organization of the Petroleum Exporting Countries (OPEC)

Andrey Rudakov | Bloomberg | Getty Images

U.S. crude oil futures fell more than 4% on Sunday, after OPEC+ agreed to surge production for a second month.

U.S. crude was down $2.49, or 4.27%, to $55.80 a barrel shortly after trading opened. Global benchmark Brent fell $2.39, or 3.9%, to $58.90 per barrel. Oil prices have fallen more than 20% this year.

The eight producers in the group, led by Saudi Arabia, agreed on Saturday to increase output by another 411,000 barrels per day in June. The decision comes a month after OPEC+ surprised the market by agreeing to surge production in May by the same amount.

The June production hike is nearly triple the 140,000 bpd that Goldman Sachs had originally forecast. OPEC+ is bringing more than 800,000 bpd of additional supply to the market over the course of two months.

Oil prices in April posted the biggest monthly loss since 2021, as U.S. President Donald Trump’s tariffs have raised fears of a recession that will slow demand at the same time that OPEC+ is quickly increasing supply.

Oilfield service firms such as Baker Hughes and SLB are expecting investment in exploration and production to decline this year due to the weak price environment.

“The prospects of an oversupplied oil market, rising tariffs, uncertainty in Mexico and activity weakness in Saudi Arabia are collectively constraining international upstream spending levels,” Baker Hughes CEO Lorenzo Simonelli said on the company’s first-quarter earnings call on April 25.

Oil majors Chevron and Exxon reported first-quarter earnings last week that fell compared to the same period in 2024 due to lower oil prices.

Goldman is forecasting that U.S. crude and Brent prices will average $59 and $63 per barrel, respectively, this year.

Catch up on the latest energy news from CNBC Pro:

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