Comment by creddit
12 hours ago
Because there is no "TikTok" ban and never has been.
There is a "TikTok cannot be controlled by the CCP" law. TikTok is completely legal under the law as long as they divest it. However, in a great act of self-incrimination, Bytedance (de facto controlled by CCP) has decided to not divest and would rather shutdown instead.
Exactly. And what puzzles me is that the evidences offered by the Congress was quite speculative, whether it's about data collection, content manipulation, influence of Chinese laws, or the potential future threat. Yet ByteDance chose not to argue about the evidence, but to argument about 1A.
The evidence and reasoning by Congress was all "non-justiciable" by the courts.
Congress looked at some evidence and made a decision. That is their purview and our checks-and-balances do not allow the courts to second-guess Congress like that. They can look at the "how" of the law, but not the "why".
Specifically the court looked at "what is congress' goal and is there any other way to achieve that goal that doesn't stop as much speech" and there isn't, but they can't question the validity of Congress' goals.
So there's no point in Bytedance arguing any of it, at least not in court.
It would have been great for ByteDance to IPO TikTok in the USA, it has had plenty of time to do so, it would have made lots of people boatloads of money, Chinese and Americans alike. Even Snapchat, which had similar levels of pervasive arrogance, IPO'd.
Yes. The Chinese government probably lost its citizens around $100b by not allowing TikTok to sell.
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You don't put your treasure for sale, at least not when you have extracted its value first.
So why didn’t they? Cmon. Is that not enough evidence to show you that something else is at play here? Of course going public would have been the honest and rational move. Communist governments would never
>And what puzzles me is that the evidences offered by the Congress was quite speculative, whether it's about data collection, content manipulation, influence of Chinese laws, or the potential future threat.
I think in a national security paradigm, you model threats and threat capabilities rather than reacting to threats only after they are realized. This of course can and has been abused to rationalize foreign policy misadventures and there's a real issue of our institutions failing to arrest momentum in that direction.
But I don't think the upshot of those problems is that we stop attempting to model and respond to national security threats altogether, which appears to be the implication of some arguments that dispute the reality of national security concerns.
> Yet ByteDance chose not to argue about the evidence, but to argument about 1A.
I think this is a great point, but perhaps their hands were tied, because it's a policy decision by congress in the aforementioned national security paradigm and not the kind of thing where it's incumbent on our govt to prove a specific injury in order to have authority to make policy judgments on national security.
As a European I have to ask is this really the way you want to go?
Because we could make nearly the same argument for banning Facebook.
If you look at the people defending TikTok, if you ask similar questions they won't try to defend it either, it's an immediate switch to whataboutism with regards to native US tech companies or arguing that the US Gov is more dangerous than the CCP.
But all that only just confirms the priors of the people who are pro-Ban. And unfortunately it's about justifying why we shouldn't ban TikTok, not why we should ban TikTok. They can't provide a good justification for that, the best they can is just poison the well and try to attack those same institutions. But turns out effectively saying "fuck you" to Congress isn't going to work when Congress has all the power here.
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This is just hypocrisy baiting, this isn't a real analysis at any level. They didn't bring ANY evidence for them to argue against, it was purely an opinion by the state that there could exist a threat, which again is not supported by evidence, true or not. America has a lot to gain by controlling tiktok and one American billionaire will become a lot richer, that's all there is to it. I mean both candidates used tiktok to campaign while wanting to ban it. It's just a ridiculous notion and even they know that.
"Oh you love hamburgers? Then why did you eat chicken last night? Hmmm, curious... You are obviously guilty"
There was evidence and it was discussed in the ruling by the Supreme Court. Please read it.
For example, https://www.supremecourt.gov/opinions/24pdf/24-656_ca7d.pdf
Gorsuch pg 3
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Do they do this with other bans, like those against network hardware? Other countries sell their goods here at the American government's leisure. It's always been this way.
What if Congress passed a law that said "The New York Times must shut down unless all foreign owners divest"? That's effectively impossible for a publicly traded corporation. Is that just a ban, in practice?
That's what the question of strict scrutiny vs. intermediate scrutiny vs. rational basis is about. The courts would have to decide the appropriate level of scrutiny given the legal context and then apply that to the law as written.
Your hypothetical clearly implicates the Times' speech, so intermediate scrutiny at least would be applied, requiring that the law serve an important governmental purpose. I think that would be a difficult argument for the government to make, especially if the law was selective about which kinds of media institutions could and could not have any foreign ownership in general. The TikTok law is much more specific.
For those interested, https://crsreports.congress.gov/product/pdf/R/R47986 is a relatively approachable overview of these guidelines.
It's interesting to read the full TikTok opinion https://www.supremecourt.gov/opinions/24pdf/24-656_ca7d.pdf and search for "scrutiny" and "tailored" while referencing some of the diagrams from the overview above. It's a good case study of how different levels of scrutiny are evaluated!
(Not a lawyer, this is not legal advice.)
IANAL, but my lay opinion is that thanks to the foreign commerce clause this would be a matter of rational basis.
So quite likely Congress could craft such a law and have it hold up, if it could show that foreign control of the NYT (which is incidentally the case) posed a national security concern.
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Except this isn't a law against any foreign owner, just specifically a foreign owner that is essentially the #1 geopolitical adversary of the US.
A large part of the US-China relationship is zero-sum. If America loses, china wins, and vice versa. That relationship is not the same for, say, the US-France relationship.
That’s what the China hawks want you to believe, it’s not just a lie but a shameful, war mongering lie. And they will increasingly use that lie to shut people up, shut apps down, until we have no choice but to believe that the Chinese want us dead and we them. It’s textbook propaganda and you’re spreading it.
China and the US have been in a massively successful, mutually beneficial global economic partnership for decades. Zero sum my ass. Take a peace pipe, make friends not war.
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Ok, replace my sentence with "The New York Times must shut down unless all Chinese foreign owners divest"; does that change the analysis?
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This is the reason right here. If TikTok was owned by North Korea, this wouldn't be controversial.
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draft published by mistake
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They absolutely could if the NYT was fully owned by a foreign entity, and that entity was a government that adversarial to the US.
The issue is not that a company has foreign shareholders -- it's the fact that is under the control of the CCP.
This was also an issue when Rupert Murdoch wanted to buy Fox; he was only able to do so once he became a US citizen, for the same reasons.
The 1A arguments by ByteDance was a diversionary tactic to shift the conversation away from the real issue (control) -- and judging by all the comments on HN by people who don't understand it's about control, I'd say they were pretty successful.
I think the equivalent would be if New York Times is somehow owned by Tencent and given that the Chinese government uses golden shares to control private companies. In that case, I think it's fair game to force NYT to divest or force them to shutdown.
https://en.wikipedia.org/wiki/Golden_share
What if Congress passed a law that said "The New York Times must shut down unless all foreign owners divest"?
This already exists in some ways. Foreign companies are not allowed to own American broadcasters. That's why Rupert Murdoch had to become a (dual?) American citizen when he wanted to own Fox television stations in the United States.
That would be like telling Facebook to "divest" from the US government. Which, in this case, means ignoring all government requests for data and censorship. Facebook obviously cannot do that.
No. The relationship between the US government and large US companies is nothing at all like the relationship between the Chinese government and large Chinese companies; the latter exist at the will of the CCP, and if you step out of line you will be shut down. Recently Jack Ma, who would be like Zuckerberg or Musk or Bezos in the US, got slapped down big time -- with significant repercussions for his companies -- recently because he made a comment critical of the government -- and what he said wasn't even bad (so probably it was some other reason that they came after him, but come after him they did).
Vaguely like that.
Ostensibly, the US government honors the 1st and 4th amendments, and only restricts speech on the platform in rare instances where that speech is likely to incite or produce imminent lawless action, and only issues warrants for private data which are of limited scope for evidence where the government has probable cause that a crime has occurred.
The accusation is that the CCP and Bytedance have a much more intimate relationship than that, censoring (or compelling) speech and producing data for mere political favors. Whether or not this is true of Facebook's relationship with US political entities is up for debate.
The only reason it isn't widely known that social media platforms in the US share information with the government regularly is because it's illegal for said platforms to disclose those requests. It used to be that platforms would have canaries, similar to a dead man's switch, that would be removed once they were subject to these types of requests. None of them do it any more because the requests are commonplace.
Cross the US government and see how fast that turns into shadow bans, your loved ones getting tortured, someone else working with your SSN, dummy up and fish, imprisoned algorithmically etc you won't even have to cross them just be guilty by association
No horse in this race as both horses hate and will trample me but just saying lol
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This is completely incorrect. Divestment in this context means the selling of an asset by an organization. You cannot "divest" in this sense from a government. That's nonsensical.
The equivalent in Facebook (Meta) terms would be China requiring Facebook, if it wished to continue operations in China, to sell the Chinese Facebook product to a Chinese or other, as to be defined by China, non-American entity. In some sense this is already the case.
Not really. There is no analogous concept in the US of the CCP's relationship with large companies.
1) TikTok was already theoretically a US company, but the strings were being pulled by the parent org in China.
2) US and China regulatory burdens and rule of law aren't equivalent, and I'm not going to grant that equivalency.
> There is a "TikTok cannot be controlled by the CCP" law
It’s also not a ban on the content. It’s a ban on hosting and the App Store. TikTok.com can still legally resolve to the same content.
You could say that about all the American tech companies that are banned in China. They just have to comply with Chinese law and will be unbanned. For example, Google, unlike Microsoft/Apple, chose to withdraw from China rather than comply with Chinese law.
It doesn’t label ccp. It denigrates four countries as foreign adversaries. And then allows the president to remove any company located in those adversaries.
Kaspersky was banned this way. Tiktok was hard coded in the law to be banned. The law allows for sale. It doesn’t enforce sale.
Wait is it actually controlled by the CCP? Did they present evidence for policies implemented by TikTok directed by the CCP?
Does divest in this context mean sell it to a non Chinese owner?
All large companies in China are ultimately controlled by the CCP. It's not a secret, but the de facto modus operandi.
Selling TikTok means handing over the source code for the algorithm.
I can see, say, Coca-Cola refusing to sell a local subsidiary if they would be forced to hand over their recipe.
>owever, in a great act of self-incrimination, Bytedance (de facto controlled by CCP) has decided to not divest and would rather shutdown instead.
How is it self-incrimination? That logic doesn't work.
80% of TikTok's users are outside of the U.S., why would they sell the whole thing?
And the law is written in a way that there is no value to just sell the American operation without the algorithm, they have to sell the whole thing, including the algorithm, in order for there to be a serious buyer.
It's technology highway robbery. Imagine if China told Apple "sell to us or be banned", we'd tell them to pound sand too.
No one is asking them to sell the entire company. Just the US arm.
Not sure that changes much but you seem to be talking about non US users, which wouldn't fall under this ruling.
The West told plenty of its companies, through public pressure or laws, that they have to divest from Russia, and they did. Rationally they recognized that selling their assets is financially more lucrative than just closing their operations and making 0$. Now why would an corporation which alleges to not be controlled by a government refuse to sell and forego billions in income, even though it is against the interest of their shareholders?
from what I know the bids that have been put in place are just for the US operations and there are some bids that dont include the algo as a part of the deal.
it's more specifically ByteDance must divest. The effects that happen because of a divestment by ByteDance, such as TikTok losing access to "the algorithm", are just incidental. The oral arguments for the case are on YouTube and are worth a listen.
Separately, it's hard to get upset about this when China absolutely does not allow similar foreign ownership of large apps in their country. Look at all the hoops, including domestic ownership requirements, required to sell saas or similar in China.
quote from tiktok's webiste https://usds.tiktok.com/usds-myths-vs-facts/: ``` Myth: TikTok’s parent company, ByteDance Ltd., is Chinese owned.
Fact: TikTok’s parent company ByteDance Ltd. was founded by Chinese entrepreneurs, but today, roughly sixty percent of the company is beneficially owned by global institutional investors such as Carlyle Group, General Atlantic, and Susquehanna International Group. An additional twenty percent of the company is owned by ByteDance employees around the world, including nearly seven thousand Americans. The remaining twenty percent is owned by the company’s founder, who is a private individual and is not part of any state or government entity. ```
Bytedance is HQ'd in Beijing and required by law to comply without exception with national security requests.
So why is Apple being forced to evict a free app from their store?
> "de facto controlled by CCP"
Where is the evidence for this?
The Chinese government directly owns shares of ByteDance. It has representatives of the government working in the company ensuring it takes the "correct political direction": https://en.wikipedia.org/wiki/ByteDance#Management
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https://www.fdd.org/analysis/2024/03/12/5-things-to-know-abo...
I found the first three alone quite compelling:
> ByteDance is Closely Connected to China’s Military-Industrial Complex
> ByteDance is Bound by Chinese State Surveillance Laws
> ByteDance’s Board is Beholden to Beijing
As evidenced that TikTok would rather shut down than continue to print money in the US
It's common knowledge that the CCP has a lot of control over various companies registered there: https://sccei.fsi.stanford.edu/china-briefs/reassessing-role...
The above is based on a linked research paper but the numbers may actually be much higher as it can't really account for proxy ownership, various CCP committees influencing these companies, state banks providing loans only for companies that play ball, etc.
And even if it wouldn't directly have fingers in the pie, it's an authoritarian state, and it always has de-facto control over anything it decides to control. The state can always just waltz in like a mafia boss: "nice outfit you have here, would be a shame if anything were to happen to it..."
While more democratic nations are not entirely flawless on this, the separation of powers, independent judiciary, and free press do offer protections against this, as does having a general culture where these sort of things aren't accepted. Again, not flawless 100% foolproof protections, but in general it does work reasonably well.
https://www.cnn.com/2024/03/18/tech/tiktok-bytedance-china-o...
> However, like most other Chinese companies, ByteDance is legally compelled to establish an in-house Communist Party committee composed of employees who are party members.
> In 2018, China amended its National Intelligence Law, which requires any organization or citizen to support, assist and cooperate with national intelligence work. > That means ByteDance is legally bound to help with gathering intelligence.
I would say yes.
Where is the evidence for this?
"Another way the Chinese government could assert leverage over a deal involving TikTok would be by exercising its “golden share” in a unit of ByteDance. In such an arrangement, the Chinese government buys a small portion of a company’s equity in exchange for a seat on its board and veto power over certain company decisions.
In 2021, an investment fund controlled by a state-owned entity established by a Chinese internet regulator took a 1 percent stake in a ByteDance subsidiary and appointed a director to its board."
https://www.nytimes.com/live/2025/01/17/us/tiktok-ban-suprem...
Committees representing the interests of the Chinese Communist Party exist inside of most major corporations in China. It would not be possible to operate a company like ByteDance without acquiescing to government interference
https://www.seafarerfunds.com/prevailing-winds/party-committ...
You can read about it here: https://thediplomat.com/2020/09/are-private-chinese-companie...
You can read the full "Opinion on Strengthening the United Front Work of the Private Economy in the New Era" here[1] in English, though I suspect you don't need the translation.
Excerpts from what the Party says openly:
> Strengthening united front work in the private economy is an important means by which the Party’s leadership over the private economy is manifested.
> This will help continuously strengthen the Party’s leadership over the private economy, bring the majority of private economy practitioners closer to the Party
> Strengthening united front work in the private economy is an important part of the development and improvement of the socialist system with Chinese characteristics.
> Educate and guide private economy practitioners to arm their minds and guide their practice with Xi Jinping’s Thoughts on Socialism with Chinese Characteristics for a New Era; maintain a high degree of consistency with the Party Central Committee on political positions, political directions, political principles, and political roads; and always be politically sensible. Further strengthen the Party building work of private enterprises and sincerely give full play to the role of Party organizations (党组织) as battle fortresses and to the vanguard and exemplary role of Party members.
> Enhance ideological guidance: Guide private economy practitioners to increase their awareness of self-discipline; build a strong line of ideological and moral defense; strictly regulate their own words and actions
[1]: https://csis-website-prod.s3.amazonaws.com/s3fs-public/publi...
China's economic reform didn't quite embrace capitalism the same way many other places did. Their businesses still inherently do not have the same managerial independence that many have come to expect as normal in the rest of the world. While Chinese businesses are allowed to have some private control, the government still exercises control over "private" businesses when they decide they are important or large enough.
Imagine if all Fortune 500 companies were required to have Trump appointees on their boards. That would sound crazy here, but that's how things still work in China.
The divestiture clause is just a red herring -- sure, that sounds perfectly fine. But you can substitute it (in the future) with anything.
In the future, the owners of a free press will be permitted to operate if and only if there is board seat made out to a CIA member. Unions will be permitted to congregate as long as they register with the Office of Trade Security
All in all, a huge blow to the potential power of individual rights (essentially goes to the Founding Fathers' point that having a list of rights set in stone is NOT the end-all, be-all, it's who decides the rights that count)