Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute’s Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California.
Apu Gomes | Getty Images
Australia on Wednesday announced it had dropped its legal battle against Elon Musk’s X to have graphic footage of a church stabbing in Sydney removed from the social media platform.
The dispute was widely seen as a test case for the Australian government’s ability to enforce its online safety standards on the social media giants.
Julie Inman-Grant, Commissioner of Australia’s online safety regulator, said in a statement that after weighing “multiple considerations,” she decided that discontinuing the proceedings would “likely achieve the most positive outcome for the online safety of all Australians, especially children.”
“Our sole goal and focus in issuing our removal notice was to prevent this extremely violent footage from going viral, potentially inciting further violence and inflicting more harm on the Australian community. I stand by my investigators and the decisions eSafety made,” Inman-Grant said, referencing Australia’s independent regulator for online safety.
X’s Global Government Affairs team welcomed the news, saying in a post that the firm was “heartened to see that freedom of speech has prevailed.”
“Freedom of speech is worth fighting for,” Musk also posted on X, shortly after the announcement.
Bishop Mar Mari Emmanuel was stabbed during a livestreamed sermon in Sydney in the middle of April that was widely circulated online, racking up hundreds of thousands of views. He survived the incident.
Following the attack, which was declared a terror incident by police, Australia’s eSafety Commissioner was granted a temporary legal injunction ordering X to hide posts that showed the footage.
Musk challenged the earlier court order as an assault on free speech.
Last month, the Musk-owned social media platform won a reprieve in Australia when a court refused to extend a temporary order blocking videos of a Sydney church stabbing globally.
War of words
The legal dispute prompted a war of words between senior Australian officials and Musk.
In an interview in late April, Australian Prime Minister Anthony Albanese called Musk an “arrogant billionaire” who thinks he stands above Australian law.
Referring to Albanese, Musk responded on X: “I do not think I’m above the law. Does the PM think he should have jurisdiction over all of Earth?”
He added, “This platform adheres to the laws of countries in those countries, but it would be improper to extend one country’s rulings to other countries.”
Musk also described eSafety Commissioner Inman-Grant as a “censorship commissar” for pursuing a global ban of the graphic footage.
Inman-Grant told ABC News that Musk’s attack against her resulted in an online pile-on from his millions of followers, along with death threats and the online exposure of personal information of her children.
If TikTok does indeed go dark on Sunday for Americans, there may be a tool for them to continue accessing the popular social app: VPNs.
The Chinese-owned app is set to be removed from mobile app stores and the web for U.S. users on Sunday as a result of a law signed by President Joe Biden in April 2024 requiring that the app be sold to a qualified buyer before the deadline.
Barring a last-minute sale or reprieve from the Supreme Court, the app will almost certainly vanish from the app stores for iPhones and Android phones. It won’t be removed from people’s phones, but the app could stop working.
TikTok plans to shut its service for Americans on Sunday, meaning that even those who already have the app downloaded won’t be able to continue using it, according to reports this week from Reuters and The Information. Apple and Google didn’t comment on their plans for taking down the apps from their app stores on Sunday.
“Basically, an app or a website can check where users came from,” said Justas Palekas, a head of product at IProyal.com, a proxy service. “Based on that, then they can impose restrictions based on their location.”
Masking your physical internet access point
That may stop most users, but for the particularly driven Americans, using VPNs might allow them to continue using the app.
VPNs and a related business-to-business technology called proxies work by tunneling a user’s internet traffic through a server in another country, making it look like they are accessing the internet from a location different than the one they are physically in.
This works because every time a computer connects to the internet, it is identified through an IP number, which is a 12-digit number that is different for every single computer. The first six digits of the number identifies the network, which also includes information about the physical region the request came from.
In China, people have used VPNs for years to get around the country’s firewall, which blocks U.S. websites such as Google and Facebook. VPNs saw big spikes in traffic when India banned TikTok in 2020, and people often use VPNs to watch sporting events from countries where official broadcasts aren’t available.
As of 2022, the VPN market was worth nearly $38 billion, according to the VPN Trust Initiative, a lobbying group.
“We consistently see significant spikes in VPN demand when access to online platforms is restricted, and this situation is no different,” said Lauren Hendry Parsons, privacy advocate at ExpressVPN, a VPN provider that costs $5 per month to use.
“We’re not here to endorse TikTok, but the looming U.S. ban highlights why VPNs matter— millions rely on them for secure, private, and unrestricted access to the internet,” ProtonVPN posted on social media earlier this week. ProtonVPN offers its service for $10 a month.
The price of VPNs
Both ExpressVPN and ProtonVPN allow users to set their internet-access location.
Most VPN services charge a monthly fee to pay for their servers and traffic, but some use a business model where they collect user data or traffic trends, such as when Meta offered a free VPN so it could keep an eye on which competitors’ apps were growing quickly.
A key tradeoff for those who use VPN is speed due to requests having to flow through a middleman computer to mask a users’ physical location.
And although VPNs have worked in the past when governments have banned apps, that doesn’t ensure that VPNs will work if TikTok goes dark. It won’t be clear if ExpressVPN would be able to access TikTok until after the ban takes place, Parsons told CNBC in an email. It’s also possible that TikTok may be able to determine Americans who try to use VPNs to access the app.
(L-R) Sarah Baus of Charleston, S.C., holds a sign that reads “Keep TikTok” as she and other content creators Sallye Miley of Jackson, Mississippi, and Callie Goodwin of Columbia, S.C., stand outside the U.S. Supreme Court Building as the court hears oral arguments on whether to overturn or delay a law that could lead to a ban of TikTok in the U.S., on January 10, 2025 in Washington, DC.
Andrew Harnik | Getty Images
VPNs and proxies to evade regional restrictions have been part of the internet’s landscape for decades, but their use is increasing as governments seek to ban certain services or apps.
Apps are removed by government request all the time. Nearly 1500 apps were removed in regions due to government takedown demands in 2023, according to Apple, with over 1,000 of them in China. Most of them are fringe apps that break laws such as those against gambling, or Chinese video game rules, but increasingly, countries are banning apps for national security or economic development reasons.
Now, the U.S. is poised to ban one of the most popular apps in the country — with 115 million users, it was the second most downloaded app of 2024 across both iOS and Android, according to an estimate provided to CNBC from Sensor Tower, a market intelligence firm.
“As we witness increasing attempts to fragment and censor the internet, the role of VPNs in upholding internet freedom is becoming increasingly critical,” Parsons said.
Charred remains of buildings are pictured following the Palisades Fire in the Pacific Palisades neighborhood in Los Angeles, California, U.S. Jan. 15, 2025.
Mike Blake | Reuters
Google and YouTube will donate $15 million to support the Los Angeles community and content creators impacted by wildfires, YouTube CEO Neal Mohan announced in a blog post Wednesday.
The contributions will flow to local relief organizations including Emergency Network Los Angeles, the American Red Cross, the Center for Disaster Philanthropy and the Institute for Nonprofit News, the blog said. When the company’s LA offices can safely reopen, impacted creators will also be able to use YouTube’s production facilities “to recover and rebuild their businesses” as well as access community events.
“To all of our employees, the YouTube creator community, and everyone in LA, please stay safe and know we’re here to support,” Google CEO Sundar Pichai posted on X.
The move comes days before Sunday’s impending TikTok ban that has already seen content creators begin asking fans to follow them on other social platforms. YouTube Shorts, a short-form video platform within YouTube, is a competitor to TikTok, along with Meta’s Instagram Reels and the fast-growing Chinese app Rednote, otherwise known as Xiahongshu.
Read more CNBC tech news
“In moments like these, we see the power of communities coming together to support each other — and the strength and resilience of the YouTube community is like no other,” Mohan wrote.
YouTube’s contributions are in line with a host of other LA companies pledging multi-million dollar donations aimed at assisting employees and residents impacted by the LA fires. Meta announced a $4 million donation split between CEO Mark Zuckerberg and the company while both Netflix and Comcast pledged $10 million donations to multiple aid groups.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
Business moguls such as Elon Musk should be prepared to spend tens of billions of dollars for TikTok’s U.S. operations should parent company ByteDance decide to sell.
TikTok is staring at a potential ban in the U.S. if the Supreme Court decides to uphold a national security law in which service providers such as Apple and Google would be penalized for hosting the app after the Sunday deadline. ByteDance has not indicated that it will sell the app’s U.S. unit, but the Chinese government has considered a plan in which X owner Musk would acquire the operations, as part of several scenarios in consideration, Bloomberg News reported Monday.
If ByteDance decides to sell, potential buyers may have to spend between $40 billion and $50 billion. That’s the valuation that CFRA Research Senior Vice President Angelo Zino has estimated for TikTok’s U.S. operations. Zino based his valuation on estimates of TikTok’s U.S. user base and revenue in comparison to rival apps.
TikTok has about 115 million monthly mobile users in the U.S., which is slightly behind Instagram’s 131 million, according to an estimate by market intelligence firm Sensor Tower. That puts TikTok ahead of Snapchat, Pinterest and Reddit, which have U.S. monthly mobile user bases of 96 million, 74 million and 32 million, according to Sensor Tower.
Zino’s estimate, however, is down from the more than $60 billion that he estimated for the unit in March 2024, when the House passed the initial national security bill that President Joe Biden signed into law the following month.
The lowered estimate is due to TikTok’s current geopolitical predicament and because “industry multiples have come in a bit” since March, Zino told CNBC in an email. Zino’s estimate doesn’t include TikTok’s valuable recommendation algorithms, which a U.S. acquirer would not obtain as part of a deal, with the algorithms and their alleged ties to China being central to the U.S. government’s case that TikTok poses a national security threat.
Analysts at Bloomberg Intelligence have their estimate for TikTok’s U.S. operations pegged in the range of $30 billion to $35 billion. That’s the estimate they published in July, saying at the time that the value of the unit would be “discounted due to it being a forced sale.”
Bloomberg Intelligence analysts noted that finding a buyer for TikTok’s U.S. operations that can both afford the transaction and deal with the accompanying regulatory scrutiny on data privacy makes a sale challenging. It could also make it difficult for a buyer to expand TikTok’s ads business, they wrote.
A consortium of businesspeople including billionaire Frank McCourt and O’Leary Ventures Chairman Kevin O’Leary put in a bid to buy TikTok from ByteDance. O’Leary has previously said the group would be willing to pay up to $20 billion to acquire the U.S. assets without the algorithm.
Unlike a Musk bid, O’Leary’s group’s bid would be free from regulatory scrutiny, O’Leary said in a Monday interview with Fox News.
O’Leary said that he’s “a huge Elon Musk fan,” but added “the idea that the regulator, even under Trump’s administration, would allow this is pretty slim.”
TikTok, X and O’Leary Ventures did not respond to requests for comment.