Social media company TikTok Inc. filed a lawsuit Monday seeking to overturn Montana's first-in-the-nation ban on the video sharing app, arguing the law is an unconstitutional violation of free speech rights and is based on “unfounded speculation” that the Chinese government could access users' data.
The lawsuit by TikTok itself follows one filed last week by five content creators who made the same arguments, including that the state of Montana has no authority to take action on matters of national security. Both lawsuits were filed in federal court in Missoula.
Republican Gov. Greg Gianforte signed the bill Wednesday and the content creators' lawsuit was filed hours later. The law is scheduled to take effect on Jan. 1.
Some lawmakers, the FBI and officials at other agencies are concerned that the video-sharing app, owned by the Chinese tech company ByteDance, could be used to allow the Chinese government to access information on U.S. citizens or push pro-Beijing misinformation that could influence the public.
Chinese law compels Chinese companies to share data with the government for whatever purposes it deems to involve national security. TikTok says this has never happened.
“TikTok is spying on Americans. Period,” Montana Attorney General Austin Knudsen, whose office drafted the bill, told a legislative committee in March. Knudsen's office has said they expected lawsuits and were prepared to defend the new law.
The federal government and about half the U.S. states, including Montana, have banned TikTok from government-owned devices.
Montana’s new law prohibits downloads of TikTok in the state. It would fine any “entity” — an app store or TikTok — $10,000 per day for each time someone “is offered the ability” to access the social media platform or download the app. The penalties would not apply to users.
Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30. The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships. Sales rose to 497,099 vehicles, compared with 462,890 in the same period last year.
OpenAI could now be the world’s most valuable startup, ahead of Elon Musk’s SpaceX and TikTok parent company ByteDance, after a secondary stock sale designed to retain employees at the ChatGPT maker. Current and former OpenAI employees sold $6.6 billion in shares to a group of investors, pushing the privately held artificial intelligence company’s valuation to $500 billion, according to a source with knowledge of the deal who was not authorized to discuss it publicly. The valuation reflects high expectations for the future of AI technology and continues OpenAI’s remarkable trajectory from its start as a nonprofit research lab in 2015.
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