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Montana

Montana’s first-in-the-nation law banning the video-sharing app TikTok in the state was blocked Thursday, one month before it was set to take effect, by a federal judge who called the measure unconstitutional.
The ruling delivered a temporary win for the social media company that has argued Montana’s Republican-controlled Legislature went “completely overboard” in trying to regulate the app. A final ruling will come at a later date after the legal challenge moves through the courts.

U.S. District Judge Donald Molloy said the ban “oversteps state power and infringes on the Constitutional right of users and businesses” while singling out the state for its fixation on purported Chinese influence.

“Despite the state’s attempt to defend (the law) as a consumer protection bill, the current record leaves little doubt that Montana’s legislature and Attorney General were more interested in targeting China’s ostensible role in TikTok than with protecting Montana consumers,” Molloy wrote Thursday in granting the preliminary injunction. “This is especially apparent in that the same legislature enacted an entirely separate law that purports to broadly protect consumers’ digital data and privacy.”

Montana lawmakers in May made the state the first in the U.S. to pass a complete ban on the app based on the argument that the Chinese government could gain access to user information from TikTok, whose parent company, ByteDance, is based in Beijing.

The ban, which was scheduled to take effect Jan. 1, was first brought before the Montana Legislature a few weeks after a Chinese spy balloon flew over the state.

It would prohibit downloads of TikTok in the state and fine any “entity” — an app store or TikTok — $10,000 per day for each time someone “is offered the ability” to access or download the app. There would not be penalties for users.

TikTok spokesperson Jamal Brown issued a statement saying the company was pleased that “the judge rejected this unconstitutional law and hundreds of thousands of Montanans can continue to express themselves, earn a living, and find community on TikTok.”

A spokeswoman for Montana Attorney General Austin Knudsen, also a Republican, tried to downplay the significance of the ruling in a statement.

“The judge indicated several times that the analysis could change as the case proceeds,” said Emily Cantrell, spokeswoman for Knudsen. “We look forward to presenting the complete legal argument to defend the law that protects Montanans from the Chinese Communist Party obtaining and using their data.”

Western governments have expressed worries that the popular social media platform could put sensitive data in the hands of the Chinese government or be used as a tool to spread misinformation. Chinese law allows the government to order companies to help it gather intelligence.

More than half of U.S. states and the federal government have banned TikTok on official devices. The company has called the bans “political theatre” and says further restrictions are unnecessary due to the efforts it is taking to protect U.S. data by storing it on Oracle servers. The company has said it has not received any requests for U.S. user data from the Chinese government and would not provide any if it were asked.

“The extent to which China controls TikTok, and has access to its users’ data, forms the heart of this controversy,” the judge wrote.

Attorneys for TikTok and the content creators argued on Oct. 12 that the state had gone too far in trying to regulate TikTok and is essentially trying to implement its own foreign policy over unproven concerns that TikTok might share user data with the Chinese government.

TikTok has said in court filings that Montana could have limited the kinds of data TikTok could collect from its users rather than enacting a complete ban. Meanwhile, the content creators said the ban violates free speech rights and could cause economic harm for their businesses.

Christian Corrigan, the state’s solicitor general, argued Montana’s law was less a statement of foreign policy and instead addresses “serious, widespread concerns about data privacy.”

The state hasn’t offered any evidence of TikTok’s “allegedly harmful data practices,” Molloy wrote.

Molloy noted during the hearing that TikTok users consent to the company’s data collection policies and that Knudsen — whose office drafted the legislation — could air public service announcements warning people about the data TikTok collects.

The American Civil Liberties Union, its Montana chapter and the Electronic Frontier Foundation, a digital privacy rights advocacy group, have submitted an amicus brief in support of the challenge. Meanwhile, 18 attorneys generals from mostly Republican-led states are backing Montana and asking the judge to let the law be implemented. Even if that happens, cybersecurity experts have said it could be challenging to enforce.

A federal judge is scheduled to hear arguments Thursday in a case filed by TikTok and five Montana content creators who want the court to block the state’s ban on the video sharing app before it takes effect Jan. 1.
U.S. District Judge Donald Molloy of Missoula is not expected to rule immediately on the request for a preliminary injunction.

Montana became the first state in the U.S. to pass a complete ban on the app, based on the argument that the Chinese government could gain access to user information from TikTok, whose parent company, ByteDance, is based in Beijing.

Content creators say the ban violates free speech rights and could cause economic harm for their businesses.

TikTok said in court filings that the state passed its law based on “unsubstantiated allegations,” that Montana cannot regulate foreign commerce and that the state could have passed a law requiring TikTok limit the kinds of data it could collect, or require parental controls, rather than trying to enact a complete ban.

Western governments have expressed worries that the popular social media platform could put sensitive data in the hands of the Chinese government or be used as a tool to spread misinformation. Chinese law allows the government to order companies to help it gather intelligence.

TikTok, which is negotiating with the federal government over its future in the U.S., has denied those allegations. But that hasn’t made the issue go away.

In a first-of-its kind report on Chinese disinformation released last month, the U.S. State Department alleged that ByteDance seeks to block potential critics of Beijing, including those outside of China, from using its platforms.

The report said the U.S. government had information as of late 2020 that ByteDance “maintained a regularly updated internal list” identifying people who were blocked or restricted from its platforms — including TikTok — “for reasons such as advocating for Uyghur independence.”

More than half of U.S. states and the federal government have banned TikTok on official devices. The company has called the bans “political theatre” and says further restrictions are unnecessary due to the efforts it is taking to protect U.S. data by storing it on Oracle servers.

The bill was brought to the Montana Legislature after a Chinese spy balloon flew over the state.It would prohibit downloads of TikTok in the state and fine any “entity” — an app store or TikTok — $10,000 per day for each time someone “is offered the ability” to access or download the app. There would not be penalties for users.

The American Civil Liberties Union, its Montana chapter and Electronic Frontier Foundation, a digital privacy rights advocacy group, have submitted an amicus brief in support of the challenge. Meanwhile, 18 attorneys generals from mostly Republican-led states are backing Montana and asking the judge to let the law be implemented. Even if that happens, cybersecurity experts have said it could be challenging to enforce.

In asking for the preliminary injunction, TikTok argued that the app has been in use since 2017 and letting Montanans continue to use it will not harm the state.

Montana did not identify any evidence of actual harm to any resident as a result of using TikTok and even delayed the ban’s effective date until Jan. 1, 2024, the company said.

TikTok and a group of five content creators who are suing the state of Montana over its first-in-the-nation law to ban the video sharing app are now asking a federal judge to block implementation of the law while the case moves through the courts and before it takes effect in January.

The separate requests for preliminary injunctions were filed Wednesday in federal court in Missoula. The cases challenging the law were filed in May and have since been consolidated by U.S. District Judge Donald Molloy.

Montana Attorney General Austin Knudsen had the bill drafted over concerns — shared by the FBI and U.S. Secretary of State Antony Blinken — that the app, owned by the Chinese 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. TikTok has said none of this has ever happened.

The motions for injunctions make the same arguments as the cases against the state — that the ban is an unconstitutional violation of free speech rights and that the state has no authority to regulate foreign affairs.

Attorneys on both sides have agreed to a schedule that calls for the state to respond to the motions by mid-August and for the plaintiffs to file their replies by mid-September, court records state.

The company and the Montana content creators argue a preliminary injunction should be granted because the plaintiffs are likely to succeed in their challenges to the law and if the ban took effect it would cause irreparable harm by depriving them of the ability to express themselves and communicate with others.

TikTok has safeguards to moderate content and protect minors, and would not share information with China, the company has argued. But critics have pointed to China’s 2017 national intelligence law that compels companies to cooperate with the country’s governments for state intelligence work.

“TikTok users don’t use the app – the app uses them and turns them into a spying apparatus for the Chinese Communist Party,” Emily Flower, a spokeswoman for the Attorney General’s Office, said in a statement that also noted recent reporting that TikTok is paying for the lawsuit filed by the content creators. “TikTok’s ‘support’ is bought and paid for – Montanans recognize the threat that the app poses to their privacy and national security.”

More than half of U.S. states, including Montana, and the federal government have banned TikTok from government-owned devices.

Republican Gov. Greg Gianforte signed the bill into law in May, saying Montana was taking “the most decisive action of any state to protect Montanans’ private data and sensitive personal information from being harvested by the Chinese Communist Party.”

As of June 1, Gianforte also prohibited the use of any social media apps tied to foreign adversaries on state equipment and for state businesses. Among the apps he listed are WeChat, whose parent company is headquartered in China; and Telegram Messenger, which was founded in Russia.

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 […]

Five TikTok content creators have filed a lawsuit 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.

The Montana residents also argued in the complaint, filed in federal court late Wednesday without public notice, that the state doesn’t have any authority over matters of national security. Republican Gov. Greg Gianforte signed the bill into law Wednesday and said it would protect Montana residents’ private data and personal information from being harvested by the Chinese government.

The ban is scheduled to take effect on Jan. 1, 2024.

“The law takes the broadest possible approach to its objectives, restricting and banning the protected speech of all TikTok users in Montana to prevent the speculative and unsubstantiated possibility that the Chinese government might direct TikTok Inc., or its parent, to spy on some Montana users,” the complaint states.

“We expected a legal challenge and are fully prepared to defend the law,” said Emily Flower, spokeswoman for the Montana Department of Justice.

TikTok has argued the law infringes on people’s First Amendment rights.

However, spokesperson Brooke Oberwetter declined to comment on the lawsuit Thursday. She also declined to say whether the company helped coordinate the complaint.

The plaintiffs are Montana residents who use the video-sharing app for things like promoting a business, connecting with military veterans, sharing outdoor adventures or expressing their sense of humor. Two of them have more than 200,000 followers.

One content creator, Carly Ann Goddard, shares videos about living on a ranch, parenting, recipes and home decor. Her account has 97,000 followers and has allowed her to roughly triple her family’s household income, the complaint states. TikTok creators can make money in several ways, including by being paid to advertise products to their followers.

The lawsuit — filed just hours after Gianforte signed the measure into law — states the ban would “immediately and permanently deprive Plaintiffs of their ability to express themselves and communicate with others.”

“Montana can no more ban its residents from viewing or posting to TikTok than it could ban the Wall Street Journal because of who owns it or the ideas it publishes,” the plaintiffs’ attorneys wrote.

The case could serve as a testing ground for the TikTok-free America many national lawmakers have envisioned. Cybersecurity experts say it could be difficult to enforce.

Some lawmakers, the FBI and officials at other agencies are concerned the video-sharing app, owned by 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. TikTok says none of this has ever happened.

A former executive at ByteDance alleges the tech giant has served as a “propaganda tool” for the Chinese government, a claim ByteDance says is baseless.

China passed laws in 2014 and 2017 that compel companies to cooperate with the country’s government for state intelligence work. TikTok says it has never been asked to hand over its data and it wouldn’t do so if asked.

“TikTok is spying on Americans. Period,” Montana Attorney General Austin Knudsen told a legislative committee in March. “TikTok is a tool of the Chinese Communist Party. It is owned by a Chinese company, and under China law, if you are based in China, you will cooperate with the Chinese Communist Party. Period.”

More than half the U.S. states, including Montana, and the federal government have banned TikTok from government-owned devices.

Montana’s law would prohibit downloads of TikTok in the state and 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.

Opponents say Montana residents could easily circumvent the ban by using a virtual private network, a service that shields internet users by encrypting their data traffic, preventing others from observing their web browsing. Montana state officials say geofencing technology is used with online sports gambling apps, which are deactivated in states where online gambling is illegal.

The idea of a TikTok ban has been around since 2020, when then-President Donald Trump attempted to bar the company from operating in the U.S. through an executive order that was halted in federal courts. President Joe Biden’s administration initially shelved those plans, but more recently threatened to ban the app if the company’s Chinese owners don’t sell their stakes.

Montana’s law would be nullified if the federal government placed a ban on TikTok or if it was sold to a company not based in a country that is federally designated as a foreign adversary, which currently includes China, Russia, North Korea, Iran and Cuba.

Montana became the first state in the U.S. to enact a complete ban on TikTok on Wednesday when Republican Gov. Greg Gianforte signed a measure that’s more sweeping than any other state’s attempts to curtail the social media app, which is owned by a Chinese tech company.

The measure, which is scheduled to take effect on Jan. 1, 2024, is expected to be challenged legally and will serve as a testing ground for the TikTok-free America that many national lawmakers have envisioned.

“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,” Gianforte said in a statement.

TikTok spokesperson Brooke Oberwetter argued that the law infringes on people’s First Amendment rights and is unlawful. She declined to say whether the company will file a lawsuit.

“We want to reassure Montanans that they can continue using TikTok to express themselves, earn a living, and find community as we continue working to defend the rights of our users inside and outside of Montana,” Oberwetter said in a statement.

Keegan Medrano, policy director for the ACLU of Montana, said the Legislature “trampled on the free speech of hundreds of thousands of Montanans who use the app to express themselves, gather information and run their small business in the name of anti-Chinese sentiment.”

Some lawmakers, the FBI and officials at other agencies are concerned the video-sharing app, owned by ByteDance, could be used to allow the Chinese government to access information on American citizens or push pro-Beijing misinformation that could influence the public. TikTok says none of this has ever happened.

When Montana banned the app on government-owned devices in late December, Gianforte said TikTok posed a “significant risk” to sensitive state data. More than half of U.S. states and the federal government have a similar ban.

On Wednesday, Gianforte also announced he was prohibiting the use of all social media applications tied to foreign adversaries on state equipment and for state businesses in Montana effective on June 1. Among the apps he listed are WeChat, whose parent company is headquartered in China; and Telegram Messenger, which was founded in Russia.

The legislation, drafted by the attorney general’s office, easily passed through Montana’s GOP-controlled Legislature.

Gianforte had wanted to expand the TikTok bill to include apps tied to foreign adversaries, but the legislature did not send the bill to him until after the session ended, preventing him from offering any amendments.

Montana’s new law prohibits downloads of TikTok in the state and 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.

Opponents consider the measure to be government overreach and say Montana residents could easily circumvent the ban by using a virtual private network, a service that shields internet users by encrypting their data traffic, preventing others from observing their web browsing. Montana state officials say geofencing technology is used with online sports gambling apps, which are deactivated in states where online gambling is illegal.

TikTok, which has said it has a plan to protect U.S. users, has vowed to fight back against the ban, along with small business owners who said they use the app for advertising to help grow their businesses and reach more customers.

The app’s fun, goofy videos and ease of use has made it immensely popular, and U.S. tech giants like Snapchat and Meta, the parent company of Facebook and Instagram, see it as a competitive threat.

Though many lawmakers in Montana have been enthusiastic about a ban, experts who followed the bill closely said the state will likely have to defend the legislation in court.

NetChoice, a trade group that counts Google and TikTok as its members, called the bill unconstitutional.

“This is a clear violation of the Constitution, which prohibits the government from blocking Americans from accessing constitutionally-protected speech online via websites or apps,” Carl Szabo, who serves as the group’s vice president and general counsel, said in a statement.

Officials are also bound to receive criticism from advocacy groups and TikTok users who don’t want their favorite app to be taken away. TikTok has been recruiting so-called influencers and small businesses who use the platform to push back on a ban. But others who haven’t been part of an official campaign coordinated by the company are also worried about what lawmakers are doing.

Adam Botkin, a former football player and recent graduate at the University of Montana, said it was a scary time for him as a content creator in Montana. The 22-year-old has nearly 170,000 followers on TikTok, where he mostly posts short videos of himself performing football kicks.

He says he sometimes makes “tens of thousands” of dollars per month from brands looking to market their products on his social media accounts, including Instagram, where he has roughly 44,000 followers.

Botkin says most of his income comes from Instagram, which is believed to be more lucrative for content creators. But he has to grow his following on that platform — and others — to have the same level of popularity that he does on TikTok. He says he’s trying to do that, and won’t try to circumvent the TikTok ban by using a VPN.

“You got to adapt and evolve with how things move,” Botkin said. “So, if I have to adapt and move, I’ll adapt.”

Chatter about a TikTok ban has been around since 2020, when then-President Donald Trump attempted to bar the company from operating in the U.S. through an executive order that was halted in federal courts. President Joe Biden’s administration initially shelved those plans, but more recently threatened to ban the app if the company’s Chinese owners don’t sell their stakes.

TikTok doesn’t want either option and has been clamoring to prove it’s free of any Chinese government interference. It’s also touting a data safety plan it calls “Project Texas” to assuage bipartisan concerns in Washington.

At the same time, some lawmakers have emerged as allies, arguing efforts to restrict data harvesting practices need to include all social media companies, not just one. Republican Sen. Rand Paul of Kentucky blocked a bill in March that would ban TikTok nationally, saying such a move would violate the Constitution and anger the millions of voters who use the app.

Montana’s TikTok ban also comes amid a growing movement to limit social media use among kids and teens and, in some cases, impose bans. Several bills circulating in Congress aim to get at the issue, including one that would prohibit all children under the age of 13 from using social media and require permission from a guardian for users under 18 to create an account.

Some states, like Utah and Arkansas, have already enacted laws that would hinge social media use on parental consent and similar bills are in the works in other states. Last year, California enacted a law that would require companies to beef up data protection practices for children and offer them the highest privacy settings.