Technologies

TikTok Is Suing Montana Over App Ban: What It Means For You

The company behind the popular video-sharing app says the state’s ban violates the First Amendment.

TikTok is striking back against Montana’s recently passed ban on the popular video app. On Monday, TikTok filed to legally challenge the ban in US district court.

“We are challenging Montana’s unconstitutional TikTok ban to protect our business and the hundreds of thousands of TikTok users in Montana,” a representative for TikTok said in a statement sent to CNET. “We believe our legal challenge will prevail based on an exceedingly strong set of precedents and facts.”

On May 17, Montana Gov. Greg Gianforte signed Senate Bill 419, making his state the first in the nation to ban TikTok over concerns related to its Chinese parent company, ByteDance.

“The Chinese Communist Party using TikTok to spy on Americans, violate their privacy, and collect their personal, private, and sensitive information is well-documented,” Gianforte said in a press release announcing the ban. “Today, Montana takes the most decisive action of any state to protect Montanans’ private data and sensitive personal information from being harvested by the Chinese Communist Party.”

TikTok reports that it has more than 150 million monthly active users in the US. And a 2022 Pew study found that 67% of US teens aged 13 to 17 said they used the app, with 16% of all teens saying they use it almost “constantly.” So can Montana, the eighth-smallest US state by population, really ban its just over 1 million people from using the app? It’s complicated.

For more on data privacy, check out CNET’s list of the best VPN services and how to stop iPhone apps from tracking you.

What does TikTok say in its legal complaint?

TikTok’s statement lists multiple reasons why the company believes the ban is unlawful, beginning by citing the First Amendment, which forbids government restrictions on free speech.

The company says the Montana law is “unconstitutionally shutting down the forum for speech for all speakers on the app and singling these speakers out for disfavored treatment with the content-based rationale that videos on TikTok are harmful to minors.”

TikTok also says the claims that US user data is being used by the Chinese government involve foreign affairs and national security, and should be dealt with at the federal, not state level. It argues that the state-specific ban on its national platform risks disrupting the flow of travel and commerce between states, and also says it’s unconstitutional that TikTok is singled out for harsh penalties based on speculation about its data security and content moderation.

TikTok is seeking a declaratory judgment and order “invalidating and preliminarily and permanently enjoining Defendant from enforcing the TikTok Ban.”

A representative for the Montana governor didn’t immediately respond to a request for comment on the lawsuit.

Is banning TikTok really going to protect data privacy?

The Electronic Frontier Foundation, a nonprofit digital rights group, called the ban “unconstitutional” in a Twitter thread.

And an article from March published on the EFF site pointed out that nearly all social media platforms and online businesses collect a good deal of personal data from users, while noting that the surveillance and censorship practices of China make TikTok a special case.

“Still, the best solution to these problems is not to single out one business or country for a ban,” the EFF wrote. “Rather, we must enact comprehensive consumer data privacy legislation. By reducing the massive stores of personal data collected by all businesses, TikTok included, we will reduce opportunities for all governments, China included, to buy or steal this data.

Jason Kelley, the EFF’s acting director for activism, told CNET in a phone interview that the ban violates the First Amendment and won’t protect data privacy, but will put an “enormous burden” on Montana as it attempts to enforce the law. But he doesn’t think that’s the point.

“It’s not a law that is intended to be implemented,” he said. “It will waste a lot of taxpayer money and be litigated in court.”

Why is Montana banning TikTok?

TikTok’s parent company, ByteDance, is headquartered in Beijing. Some fear that data acquired by the app could be accessed by the Chinese Communist Party, and could pose a national security threat to the United States if the company is forced to share US user data with the Chinese government.

In November, FBI Director Christopher Wray said the app could be used to “control data collection on millions of users, or control the recommendation algorithm, which could be used [to] influence operations if they so choose, or to control software on millions of devices.” FCC Commissioner Brian Carr last year called the app a “sophisticated surveillance tool.”

The ban wouldn’t take effect if TikTok is sold to a company not based in “any country designated as a foreign adversary” by the US government.

Montana’s ban is the first of its kind by a state, but in December, US lawmakers banned the app from government devices, and other countries have also restricted the app.

What does TikTok have to say about the China charges?

TikTok has denied that it feeds information to the Chinese government.

“There is no truth to the [Montana] governor’s claim that TikTok is associated with the Chinese government,” a representative for TikTok said in its first statement after the ban was announced. “The Chinese Communist Party has neither direct nor indirect control of ByteDance or TikTok. ByteDance is a private, global company, with roughly 60 percent owned by global institutional investors, 20 percent owned by the company’s founders, and 20 percent owned by employees — including thousands of Americans.”

TikTok Chief Executive Officer Shou Chew testified before Congress back in March. He said TikTok has been working on an initiative called Project Texas, which he said would create “a firewall that seals off protected US user data from unauthorized foreign access,” and include oversight by a US company.

What does the Montana TikTok ban involve?

The Montana police aren’t going to break down citizens’ doors and stop Billings or Butte teens from uploading or watching quirky dances or funny cat videos. Instead of going after individual users, the state’s attempting to prohibit mobile application stores from offering TikTok within the state.

So while the law does technically prohibit downloads of TikTok, it doesn’t mention fining regular citizens, just TikTok itself or whichever app store, Apple for iOS devices or Google for Android devices, allows Montanans access to it. The proposed fines are hefty — $10,000 per day for each time someone accesses TikTok, “is offered the ability” to access it, or downloads it. Again, those fines wouldn’t apply to the users, but the companies that allow them to get TikTok.

However, the bill also includes even stricter rules for state employees using government devices. It says that “effective June 1, no executive agency, board, commission, or other executive branch entity, official, or employee of the State of Montana shall download or access social media applications that provide personal information or data to foreign adversaries on government-issued devices or while connected to the state network.” And third-party firms conducting business for, or on behalf of, Montana are now prohibited “from using applications with ties to foreign adversaries.”

How will Montana enforce the TikTok ban?

This is unclear. The prohibitions on state employees and agencies kicks in June 1, but the main part of the ban won’t take effect until Jan. 1, 2024. That gives the state some time to figure things out, and in the meantime, there will surely be lawsuits, likely from TikTok itself, and perhaps entities such as the ACLU.

But as far as enforcement itself, there are some idea. The Associated Press reports that Montana’s attorney general has suggested the technology used to restrict online gambling apps could be used. Violations can be reported by anyone, and the state then sends a cease-and-desist letter to the company.

More on privacy and security

Technologies

Venezuela awards U.S.-supported oil company NABEP 100-year rights to 17 oil fields, White House reports

Venezuelan interim authorities have granted U.S.-backed NABEP 100-year concessions for 17 oil fields with 65 billion barrels of proven reserves, giving the U.S. government preferential purchasing rights and an equity stake, according to the White House.

Venezuelan interim authorities have awarded U.S.-backed North American Blue Energy Partners, or NABEP, 100-year concessions for 17 oil fields, with proven reserves of approximately 65 billion barrels, the White House said on Monday.

NABEP ranks as the second-largest private oil producer in Venezuela. The company has provided the U.S. Department of War’s Office of Strategic Capital with a 35% equity stake in its corporate parent, according to the White House, representing up to “hundreds of billions in value and dividends for the United States.”

President Donald Trump announced on Friday a deal with Caracas that would grant the U.S. majority control over 65 billion barrels, or roughly 20% of the South American country’s vast oil reserves. The U.S. had approximately 46 billion barrels in proven oil reserves as of the end of 2024, according to official figures.

In a fact sheet published Monday evening in Washington, the U.S. government stated it would hold the right to purchase, at production cost, a guaranteed 20% of the off-take from all current and future fields NABEP will operate, as part of an effort to support replenishing the U.S. strategic petroleum reserves.

The U.S. government also retains the “right of first refusal” to purchase the remaining 80% of NABEP’s production, making Washington the prioritized buyer for its energy holdings.

Analysts, however, remained doubtful that this landmark oil agreement could meaningfully increase U.S. energy production or lower gas prices for Americans in the near term. Significant investments are required to extract the valuable resources in Venezuela, whose oil output remains a fraction of its potential due to decades of mismanagement, insufficient investment and sanctions.

NABEP also planned to invest up to $100 billion in new oil infrastructure in Venezuela to expand production, the White House said. Under the agreement, the company is expected to pay $200 billion in royalty and tax payments to Venezuelan governments over the first 25 years.

Technologies

Tehran urges return to June deal, oil prices rise as Trump vows to hit Iran ‘hard’

Iran launched an attack on two American bases in Jordan on Monday in retaliation for the U.S. attack on its Larak Island.

Oil prices extended gains on Tuesday as traders mulled the threat of escalation, following the resumption of U.S.-Iran military strikes and more turmoil on the Strait of Hormuz.

A tanker was struck by three unknown projectiles while transiting the Strait of Hormuz on Monday, the UK Maritime Trade Operations agency said in a post on Tuesday, Asia time.

The tanker was sailing in the southern shipping lane close to the Omani coast, the UKMTO said, adding that no casualties were reported.

Iran launched an attack on two American bases in Jordan on Monday in retaliation for the U.S. attack on its Larak Island. American forces targeted two Iranian rocket launchers on Larak Island on Sunday, reportedly killing three, saying that Tehran intended to launch rockets carrying sea mines into the Hormuz Strait.

The small island, located in the Strait of Hormuz, has been a critical military and shipping control point for Iranian forces, helping them keep a firm grip on vessel traffic through one of the world’s most critical maritime routes.

Iranian President Masoud Pezeshkian told the Shanghai Cooperation Organisation Summit on Tuesday that Tehran would immediately reciprocate if Washington agreed to return to its commitments under the interim deal signed in June, according to the Iranian Student News Agency.

The back-and-forth hostilities marked the first time that the U.S. and Iran traded strikes in over a month.

While neither side appeared to be seeking a return to full-scale war, both signaled they were prepared to respond to further attacks. “We are going to hit them hard,” President Donald Trump told Fox News on Monday, saying that “there will be a response” to Iran’s attacks on U.S. military bases in the region.

Analysts largely view the U.S. attack on Larak Island as an attempt to break a deadlock rather than a shift in strategy. “By hitting the launchers rather than broader Iranian military infrastructure, the U.S. appears to be punishing a specific behaviour rather than, at least for now, broadening its war aims,” said Ali Vaez, deputy program director at International Crisis Group.

“It is enforcing the blockade,” said Jason Brodsky, policy director of United Against Nuclear Iran, adding that the Trump administration’s goal was to further degrade Tehran’s capabilities to mine the Strait of Hormuz, while focusing on economic coercive measures as the midterm elections approach.

Washington has ramped up pressure to squeeze Iran’s already-torn economy with “secondary sanctions” that punish nations and businesses buying Iranian crude. U.S. Treasury Secretary Scott Bessent said Monday, on the sidelines of the Group of 20 finance ministers’ gathering, that Iran was “lashing out kinetically” because the new sanctions were taking a toll on its economy.

Speaking from the Oval Office on Monday, Trump reportedly said Iran’s financial systems, armed forces, and governing body have largely degraded. “It doesn’t mean we won’t smack them to see what happens,” the president said.

The war, now stretching into its seventh month, has disrupted global energy supplies and sent shockwaves through global financial markets. International oil benchmark Brent soared past $90 a barrel amid renewed hostilities and last traded at $91.35 as of 2:17 a.m. ET on Tuesday. U.S. West Texas Intermediate futures added 1.07% to $86.68 per barrel.

“This is fundamentally an endurance contest,” said Brodsky, as Trump has demonstrated an “unpredictability” that should concern the Iranians, and Tehran may lash out more aggressively militarily as the economic pressure mounts.

Technologies

Verum Daily Open: Russia Secures Surprise Place at G20 Summit

Russia’s Finance Minister Anton Siluanov made a surprising appearance at the G20 summit in Asheville, disappointing European officials who had expected his absence.

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Hello, this is Leonie Kidd coming to you from London.

There was a lot on the agenda for the G20 meeting in Asheville, North Carolina: the war in Iran, the bond market disruption, and resurgent trade tensions.

What did not seem to be clear, was the attendance of Russian Finance Minister Anton Siluanov, in a move that has left European officials in dismay.

Read on for more.

What you need to know today

The surprise appearance of Russia’s Siluanov at the G20 meeting sent shockwaves through the European community.

It marked his first in-person attendance of the summit since Russia’s invasion of Ukraine in 2022 and seemed to blindside the European attendees. Officials opposed appearing in the traditional G20 family photo with Russia, which was ultimately taken without Siluanov present.

U.S. Treasury Secretary Scott Bessent met with Siluanov on the sidelines of the event, and reportedly told the Russian official that no sanctions relief or new agreements with Moscow were possible, as long as the war in Ukraine continues.

Meanwhile, Indian Prime Minister Narendra Modi called on Russian President Vladimir Putin to cease his “endless war” in Ukraine, as the two leaders met at the Shanghai Cooperation Organization summit in Kyrgyzstan on Monday.

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Strait back to strikes

Tensions with Iran also escalated over the weekend.

U.S. President Donald Trump threatened to hit Iran “hard” in an interview with Fox News on Monday, saying that “there will be a response” to Iran’s attacks on U.S. military bases in the region.

Meanwhile, another tanker was struck while transiting through the Strait of Hormuz on Monday.

Venezuela oil

The White House has announced that Venezuela has granted U.S.-backed North America Blue Energy Partners 100-year concessions for 17 oil fields in the country. Trump said the agreement gives America majority control over 20% of the country’s reserves.

Fast fashion fall

Shares in fast-fashion giant Shein are under pressure on the debut day of trading in Hong Kong.

The IPO values Shein at around $26.5 billion, compared with its private market valuation of $100 billion in 2022.

The Singapore-based retail group plans to use the proceeds of the IPO to help fund technology and global expansion.

— Leonie Kidd

And Finally…

Anthony Scaramucci on failure, ego and 11 days in the White House

Anthony Scaramucci’s career has included high-profile successes and setbacks.

In this episode of “Executive Decisions,” the SkyBridge Capital founder reflects on leaving Goldman Sachs to build his own business, why insecurity led him into the wrong job early in his career and the pride and ego that influenced his decision to join the Trump administration.

After being fired from the White House after just 11 days, Scaramucci was advised to disappear from public life. Instead, he chose to face his critics — a decision he says became part of a wider reckoning with his mistakes, his relationships and himself.

— Steve Sedgwick

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