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BUSINESS Monday 28 SepteMber 2020
TikTok fate in the balance as judge weighs app store ban

By ANNE D'INNOCENZIO export license after Beijing
and MATT O'BRIEN tightened control over ex-
AP Business Writers ports last month in an ef-
NEW YORK (AP) — Lawyers fort to gain leverage over
for TikTok pleaded with a Washington's attempt to
U.S. federal judge on Sun- force an outright sale of Tik-
day to delay the Trump Tok to U.S. owners.
Administration's ban of the China's foreign ministry has
popular video sharing pro- said the government will
gram from app stores set "take necessary measures"
to take effect at the end to safeguard its compa-
of the day, arguing the nies but gave no indica-
move would infringe on tion what steps it can take
First Amendment rights and to affect TikTok's fate in the
do irreparable harm to the United States.
business. TikTok is suing the U.S. gov-
The 90-minute hearing ernment over Trump's Aug.
came after President Don- 6 executive order, saying it
ald Trump declared this is unlawful. So are resulting
summer that TikTok was a Commerce Department
threat to national security prohibitions that aim to kick
and that it either sold its U.S. TikTok out of U.S. app stores
operations to U.S. compa- and, in November, essen-
nies or the app would be tially shut it down in the U.S.,
barred from the country. This Feb. 25, 2020, file photo, shows the icon for TikTok in New York. it claimed.
TikTok, owned by Chinese Associated Press The Chinese firm said the
company ByteDance, is tive," noting that this is "just addressed today even that Americans "will be the president doesn't have the
scrambling to firm up a deal a blunt way to whack the while other things are on- majority and ByteDance authority to take these ac-
tentatively struck a week company now while do- going and playing out." will have no ownership in tions under the national-
ago in which it would part- ing nothing to achieve the Schwei also argued that TikTok Global." security law he cited; that
ner with tech company Or- stated objective of the pro- TikTok lawyers failed to Chinese media have criti- the ban violates TikTok's First
acle and retailer Walmart hibition. " prove it would suffer irrepa- cized the deal as bullying Amendment speech rights
and that would get the TikTok lawyers also argued rable business harm. and extortion, suggesting and Fifth Amendment due-
blessing of the Chinese and that a ban on the app The Justice Department that the Chinese govern- process rights; and that
American governments. In would stop tens of thou- laid out its objections to ment is not happy with the there's no authority for the
the meantime, it is fighting sands of potential viewers TikTok's motion for a tem- arrangement. ByteDance restrictions because they
to keep the app available and content creators every porary injunction in a brief said Thursday it has applied are not based on a nation-
in the U.S. month and would also hurt under seal, but it was un- for a Chinese technology al emergency.q
The ban on new downloads its ability to hire new talent. sealed in redacted form to
of TikTok, which has about In addition, Hall argued protect confidential busi- Company to pay $60M for
100 million users in the U.S, that a ban would prevent ness information.
was delayed once by the existing users from auto- Trump set the process in deceptive marketing with
government. A more com- matically receiving security motion with executive or- pelvic mesh
prehensive ban is sched- updates, eroding national ders in August that de-
uled for November, about security. clared TikTok and another Associated Press
a week after the presiden- Justice Department lawyer Chinese app, WeChat, as thousands of women to
tial election. Judge Carl Daniel Schwei sought to un- threats to national security. JACKSON, Miss. (AP) — A suffer," Mississippi Attor-
Nichols of the U.S. District dercut TikTok lawyers' argu- The White House says the company that failed to ney General Lynn Fitch
Court for the District of Co- ment, saying that Chinese video service is a security adequately inform wom- said in a statement. "This
lumbia said he would make companies are not purely risk because the personal en of dangerous side ef- settlement holds Bard ac-
a decision by late Sunday, private and are subject to information of its millions of fects related to perma- countable for its decep-
leaving TikTok's fate hang- intrusive laws compelling U.S. users could be handed nent pelvic mesh devices tive business practices."
ing. their cooperation with in- over to Chinese authorities. will be required to pay Troy Kirkpatrick, a spokes-
In arguments to Judge telligence agencies. The Trump has said he would $60 million, according to person for Becton, Dickin-
Nichols, TikTok lawyer John Justice Department has approve a proposed a settlement announced son and Co., said Friday
Hall said that TikTok is more also argued that econom- deal in which Oracle and this week by state attor- morning that C.R. Bard
than an app but rather is a ic regulations of this nature Walmart could initially own ney generals across the and its parent company
"modern day version of a generally are not subject to a combined 20% of a new U.S. The money from C.R. have denied any allega-
town square." First Amendment scrutiny. U.S. entity, TikTok Global. Bard, Inc. and its parent tions of wrongdoing. He
"If that prohibition goes Plaintiffs can't claim a First Trump also said he could company Becton, Dick- said the company chose
into effect at midnight, the Amendment right in host- retract his approval if Ora- inson and Company, will to settle the matter "to
consequences immedi- ing TikTok itself as a platform cle doesn't have "total con- be spread out among 48 avoid the time and ex-
ately are grave,'" Hall said. for others' speech because trol." states and the District of pense of further litiga-
"It would be no different merely hosting a platform is The two sides of the TikTok Columbia. For example, tion." C.R. Bard Inc. is just
than the government lock- not an exercise of the First deal have also appeared Arizona will receive $1.15 the latest manufacturer
ing the doors to a public Amendment, the Justice at odds over the corporate million. Mississippi is set to of transvaginal mesh, a
forum, roping off that town Department contends. structure of TikTok Global. receive around $840,000. net-like implant used to
square" at a time when a "This is the most immediate ByteDance said last week "C.R. Bard failed to dis- treat stress urinary incon-
free exchange of ideas is national security threat," ar- that it will still own 80% of the close serious and life- tinence and pelvic organ
necessary heading into a gued Schwei. "It is a threat U.S. entity after a financing altering risks of perma- prolapse, to be required
polarized election. today. It is a risk today and round. Oracle, meanwhile, nently implanted surgical by the court to pay a
Hall called the ban "puni- therefore it deserves to be put out a statement saying mesh devices, leaving large sum. q