TikTok is suing the US government over a new law that will force its Chinese parent company ByteDance to divest the popular video app or face a ban across the country, which it says would breach First Amendment rights.
The lawsuit marks the first legal challenge since Congress passed the law in April, with TikTok saying the legislation will stifle free speech and hurt creators and small business owners who benefit from the platform, in breach of their rights enshrined in the First Amendment to the US Constitution.
The company previously said it has spent more than $1.5 billion to isolate its US operations and agreed to oversight by American company Oracle, Bloomberg reported.
“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 one billion people worldwide,” the company said in a filing on Tuesday with the US Court of Appeals in Washington.
The popular short video company alleged the law is so “obviously unconstitutional” that the sponsors of the Protecting Americans From Foreign Adversary Controlled Applications Act are trying to portray it not as a ban but as a regulation of TikTok's ownership.
ByteDance has nine months to sell the platform but the company said it has no plans to sell, according to the Associated Press.
The legal battle comes after President Joe Biden signed into law a Ukraine-Israel aid package that includes the TikTok provision.
Explained: The battle over TikTok's future in America – video
The President signed the law despite his re-election campaign using the platform for reach younger voters.
Former president Donald Trump used an executive order to try to force a sale of the app to an American company or face a ban but his administration also faced legal challenges and judges blocked it from taking place.
“There is no question: the act will force a shutdown of TikTok by January 19, 2025, silencing the 170 million Americans who use the platform to communicate in ways that cannot be replicated elsewhere,” the company said.
TikTok chief executive Shou Chew said in a video on the app the day the bill was signed: “Make no mistake, this is a ban, a ban on you and your voice.
“Politicians may say otherwise but don’t get confused. Many who signed the bill say the TikTok ban is the ultimate goal.”
The fight over TikTok takes place as US-China relations have shifted to that of intense strategic rivalry, especially in areas such as advanced technology and data security, seen as essential to each country’s economic prowess and national security.
Politicians from both US parties, as well as administration and law enforcement officials, have expressed concerns that Chinese authorities could force ByteDance to hand over user data or sway public opinion by manipulating the algorithm that populates users' feeds.
Meanwhile, TikTok and other platforms have been hit with hundreds of lawsuits blaming them for young people becoming addicting to social media and causing mental distress.
Montana became the first US state to enact a law that would ban residents from using the app. In December, a federal judge sympathised with TikTok’s free speech argument in blocking the Montana measure while the legal challenge plays out.
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How to invest in gold
Investors can tap into the gold price by purchasing physical jewellery, coins and even gold bars, but these need to be stored safely and possibly insured.
A cheaper and more straightforward way to benefit from gold price growth is to buy an exchange-traded fund (ETF).
Most advisers suggest sticking to “physical” ETFs. These hold actual gold bullion, bars and coins in a vault on investors’ behalf. Others do not hold gold but use derivatives to track the price instead, adding an extra layer of risk. The two biggest physical gold ETFs are SPDR Gold Trust and iShares Gold Trust.
Another way to invest in gold’s success is to buy gold mining stocks, but Mr Gravier says this brings added risks and can be more volatile. “They have a serious downside potential should the price consolidate.”
Mr Kyprianou says gold and gold miners are two different asset classes. “One is a commodity and the other is a company stock, which means they behave differently.”
Mining companies are a business, susceptible to other market forces, such as worker availability, health and safety, strikes, debt levels, and so on. “These have nothing to do with gold at all. It means that some companies will survive, others won’t.”
By contrast, when gold is mined, it just sits in a vault. “It doesn’t even rust, which means it retains its value,” Mr Kyprianou says.
You may already have exposure to gold miners in your portfolio, say, through an international ETF or actively managed mutual fund.
You could spread this risk with an actively managed fund that invests in a spread of gold miners, with the best known being BlackRock Gold & General. It is up an incredible 55 per cent over the past year, and 240 per cent over five years. As always, past performance is no guide to the future.
Global Fungi Facts
• Scientists estimate there could be as many as 3 million fungal species globally
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• Fungi account for roughly 90% of Earth's unknown biodiversity
• Forest fungi help tackle climate change, absorbing up to 36% of global fossil fuel emissions annually and storing around 5 billion tonnes of carbon in the planet's topsoil
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