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TikTok Heads To Court Over US Law That Could Lead To A Ban On The Popular Platform

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2 months ago

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The United States government and TikTok will face off in federal court on Monday, as oral arguments begin in a pivotal legal issue that may determine whether or not a popular social media platform used by nearly half of all Americans will continue to operate in the country.

Attorneys from both parties will appear before a panel of judges at the federal appeals court in Washington. TikTok and its Chinese parent company, ByteDance, are appealing a US law that mandates them to cut ties or face a ban in the US by mid-January. The legal dispute is expected to reach the United States Supreme Court.

The measure, signed by President Joe Biden in April, marked the end of a years-long saga in Washington over the short-form video-sharing app, which the government views as a national security danger due to its ties to China. However, TikTok claims the rule violates the First Amendment, while others contend it echoes crackdowns witnessed in totalitarian regimes around the world.

TikTok Heads To Court Over US Law That Could Lead To A Ban On The Popular Platform

In court documents filed this summer, the Justice Department emphasized the government’s two main concerns. First, TikTok captures massive amounts of user data, including sensitive information about viewing patterns, which may fall into the hands of the Chinese government if coerced. Second, the United States claims that the proprietary algorithm that drives what users view on the app is susceptible to manipulation by Chinese authorities, who can use it to mold information on the platform in ways that are difficult to detect.

TikTok has frequently stated that it does not share U.S. user data with the Chinese government and that the government’s worries have never been proven. In court documents, attorneys for TikTok and its parent business said that members of Congress attempted to punish the platform based on propaganda they thought to be on TikTok. The corporations also stated that divestiture is impossible and that the app will be forced to close by January 19 if the courts do not intervene to prevent the law.

“Even if divestiture were feasible, TikTok in the United States would still be reduced to a shell of its former self, stripped of the innovative and expressive technology that tailors content to each user,” the businesses claimed in a legal brief they submitted in July. “It would also become an island, preventing Americans from exchanging views with the global TikTok community.”

Opponents of the bill argue that a prohibition would disrupt the marketing, retail, and lives of many diverse content providers, some of whom sued the government in May. TikTok is paying the legal fees for that litigation, which the court has clubbed with the company’s complaint and another filed in favor of conservative creators working with a nonprofit called BASED Politics Inc.

Though the government’s primary justification for the statute is public, major portions of its court papers contain classified information that has been redacted and concealed from public access. The firms have requested that the court reject the secret files or appoint a district judge to sift through the data, which the government has resisted since it will cause a delay in the case. If permitted into court, legal experts believe the secret documents could make it practically difficult to know some of the elements that could influence the final decision.

In one of the redacted statements submitted in late July, the Justice Department claimed TikTok received direction from the Chinese government regarding content on its site, but did not provide any other information about when or why those occurrences occurred. Casey Blackburn, a senior US intelligence official, said in a legal declaration that ByteDance and TikTok “have taken action in response” to Chinese government orders “to censor content outside of China.” Though the intelligence community had “no information” that this had occurred on TikTok’s platform in the United States, Blackburn stated that it “may” happen.

In a separate court filing, the DOJ stated that the US is “not required to wait until its foreign adversary takes specific detrimental actions before responding to such a threat.”

However, the corporations contend that the government might have adopted a more customized approach to addressing their concerns.

More than two years ago, during high-stakes negotiations with the Biden administration, TikTok submitted the government with a 90-page draft agreement that allowed a third party to supervise the platform’s algorithm, content moderation processes, and programming. TikTok claims to have spent more than $2 billion voluntarily implementing some of these steps, including putting U.S. user data on Oracle-controlled servers. However, a settlement was not struck since government officials effectively walked away from the bargaining table in August 2022.

Due to TikTok’s scale and technical complexity, justice officials claim that compliance with the draft agreement is difficult or would need enormous resources. The Justice Department also stated that the best way to address the government’s concerns is to cut ties between TikTok and ByteDance, given the porous relationship between the Chinese government and Chinese enterprises.

However, some experts have questioned whether such a move would hasten the so-called “decoupling” between the United States and its strategic foe, especially since other China-founded enterprises, such as Shein and Temu, are also making a major mark in the West. Last Monday, the Biden administration proposed rules that would restrict duty-free products exported straight from China.

TikTok Heads To Court Over US Law That Could Lead To A Ban On The Popular Platform

ByteDance has openly said that TikTok is not for sale. Despite this, several investors, like former Treasury Secretary Steven Mnuchin and millionaire Frank McCourt, have announced offers to buy the platform. However, even if such a transaction were to materialise, it would most likely be devoid of TikTok’s vaunted algorithm, raising concerns about the platform’s ability to serve up the type of personally tailored videos that users have grown to demand.

The political alignments on the topic are playing out in unexpected ways.

The measure, which passed with bipartisan support in Congress, sparked opposition from several progressive and Republican politicians who expressed worries about handing the government the authority to block a platform used by 170 million Americans. Former President Donald Trump, who attempted to prohibit TikTok while in office, is now opposed to a ban because it would benefit its competitor, Facebook, a platform Trump continues to criticise since his 2020 election loss.

In court, free speech and social justice organisations have filed amicus papers in support of TikTok, alleging that it violates users’ First Amendment rights and suppresses minority community speech by interrupting a tool that many of them use to fight for causes online. Some libertarian groups with ties to ByteDance investor Jeff Yass have also submitted briefs in defence of the company.

Meanwhile, more than 20 Republican solicitors general, former national security officials, and China-focused human rights organisations have backed the Biden administration in its request that the court preserve the statute.

SOURCE | AP

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Trudeau Accelerates Bond Selloff Over Mass Spending Fears

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1 day ago

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2024-11-23

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Trudeau, Bond Market
Trudeau accelerated a bond selloff due to expectations of faster growth and a deeper deficit

Prime Minister Justin Trudeau has accelerated bond selloffs, citing fears of a larger deficit over his GST giveaway. Investors were concerned he was returning to his free-spending strategy as an election loom.

On Thursday, Trudeau unveiled a C$6.3 billion ($4.5 billion) tax relief and rebate program. It includes a two-month moratorium on federal sales tax on various commodities such as Christmas trees, wine, toys, and books and a C$250 check for almost 19 million Canadians, or over half of the population.

The declaration looked to mark the end of a brief period of fiscal restraint, as Finance Minister Chrystia Freeland committed to contain budget deficits to prevent stoking inflationary pressures.

Now that inflation has returned to the Bank of Canada’s 2% target, policymakers have reduced the benchmark interest rate by 125 basis points since June.

Trudeau’s Liberal government sees an opportunity to dig deeper into the public purse, but some analysts believe investors are keeping a careful eye on the country’s debt.

Bonds continued to fall on Thursday following the announcement, as the 10-year benchmark yield rose 7 basis points to 3.457%. After retail data showed a rise in consumer spending on Friday, it increased by up to 3.488%.

As the Trudeau government considers additional fiscal spending, concerns about Canada’s financial situation persist.

Budget Shortfall

Freeland has yet to publish final spending and income figures for the fiscal year that ended in October. Parliamentary Budget Officer Yves Giroux predicts a deficit of C$46.8 billion, much exceeding Freeland’s self-imposed aim of a C$40 billion shortfall.

Despite promises to reduce deficits, the Trudeau government continues to increase expenditure. This year’s budget includes a new capital gains tax inclusion rate to balance the cost of new housing and social initiatives.

This sparked anger from investors and entrepreneurs but allowed Freeland to present a consistent deficit despite significant spending.

The recent declaration indicates that Trudeau’s government no longer feels restrained in its capacity to use economic stimulus to restore favor.

Pierre Poilievre’s Conservatives have led most surveys by roughly 20 points for over a year. They have pounded the prime minister on affordability and promised to reduce taxes, especially income taxes. An election is expected in late October 2025.

The sales tax break will run from December 14 to February 15. The left-wing New Democratic Party intends to support it but has stated that it will continue to advocate for its permanent implementation and expansion to include additional items.

Let the Bankers Worry

Following Trudeau’s announcement, traders in overnight swap markets reduced their bets that the Bank of Canada will drop interest rates by 50 basis points for the second time in December, lowering the odds to fewer than 25% by the end of Thursday. As of late Friday morning, the odds were less than 17%.

The announcement also encouraged several experts to improve their short-term projections for Canada’s GDP. Analysts at the Bank of Montreal predict that the country’s GDP will increase at a 2.5% annualized rate in the first three months of 2025, up from 1.7%.

Speaking to reporters on Friday, Trudeau praised his government’s approach to program expenditure, claiming it fosters optimism and possibilities for families and the middle class.

“We’re focusing on Canadians. “Let the bankers worry about the economy,” Trudeau stated.

Related:

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

Canada’s Budgetary Watchdog Warns Over Trudeau’s Spending

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Forced Sale Google Chrome Could Fetch $20 Billion

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2 days ago

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2024-11-21

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Sale Google Chrome

Antitrust officials in the US could force the sale of Google’s Chrome browser for up to $20 billion, demonstrating the tremendous worth of the world’s most popular web browser.

Bloomberg Intelligence attributes Chrome’s projected worth to its more than 3 billion monthly active users. The US Department of Justice is preparing to request a federal judge order the browser’s separation from Google’s parent company, Alphabet.

Chrome’s worth comes from its overwhelming 61% market share and its crucial role in Google’s advertising ecosystem. User data enables businesses to better target adverts, and the browser also acts as an important distribution mechanism for Google’s AI technologies.

Industry analysts think it may be difficult to find a suitable buyer. While tech behemoths like Amazon could finance the purchase, they would likely face regulatory scrutiny.

AI businesses, such as OpenAI, may emerge as more viable contenders. They could potentially leverage Chrome to broaden their reach and develop an advertising business.

“It’s not directly monetizable,” one analyst told Bloomberg. “It functions as a gateway to other things. It’s unclear how you would assess that in terms of pure revenue generation.”

Google opposes prospective sales, claiming that they will hamper innovation. The firm does not break out Chrome’s revenue individually in its financial filings, even though the browser’s user data plays an important part in the company’s principal revenue stream, advertising.

The DOJ’s suggestion follows Judge Amit Mehta’s August decision that Google had illegally monopolized the search industry. The judge will consider the recommended remedies at a two-week hearing in April 2024, with a final judgment due in August 2025.

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Appeals Court Delays Order For Google To Open Its App Store In Antitrust Case

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Bitcoin Has Set a New Record And Is Approaching $100,000.

Published

3 days ago

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2024-11-21

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Bitcoin

(VOR News) – Bitcoin broke beyond the $98,000 mark for the first time on Thursday as investors awaited Donald Trump’s second term as president. All of this happened during the day. As such, cryptocurrency has reached a significant turning point.

According to Coin Metrics, the top cryptocurrency was trading at $97,541.61 during the most recent trading session. Merchants provided this information. This suggests a price gain of more than three percent during the previous trading session.

When the period began, Bitcoin peaked at $98,367.00.

During the premarket trading session, MicroStrategy, a platform that facilitates cryptocurrency foreign exchange trading and serves as a bitcoin proxy, saw a 13% gain. Coinbase, on the other hand, had a 2% rise during that period. Furthermore, all of these increases occurred simultaneously.

The market value of Mara Holdings increased by 9%, which helped raise the valuation of mining companies overall. This was among the factors that led to the total rise.

Because of the widespread belief that President Trump will usher in a new era of prosperity for cryptocurrencies, one marked by more favorable laws and the possible creation of a national strategic bitcoin reserve, the price of Bitcoin has been rising steadily this month.

The most recent change brought about by the increase was the consequence of higher financing rates and more open interest in the futures market during Asian trading hours. The rise was the catalyst for this change. This action was prompted by the ensuing rush.

Throughout its lifespan, this legislation was the catalyst for this change for a variety of reasons. At the same time, spot market premiums decreased, according to CryptoQuant statistics. All of this happened at the same time.

Furthermore, a number of short liquidations have been sparked by the recent spikes in Bitcoin’s price, which has caused the price to rise overnight. As a result, the price has gone up much more. As a result, the total number of short liquidations has increased.

According to CoinGlass, these liquidations have effectively produced more than $88 million in capital during the last 24 hours.

Rob Ginsberg, an analyst at Wolfe Research, noted in a study released on Wednesday that “historically, following previous movements of this magnitude, Bitcoin has either entered a consolidation phase or disregarded the overbought condition as investors accumulate.” This phrase relates to the fact that this particular move has happened before.

Ginsberg stated this in reference to the evolution of Bitcoin over time.

Ginsberg’s answer makes reference to Bitcoin’s propensity to go through a period of consolidation. The comment also made reference to this.

He said, “Considering we are emerging from an extended consolidation phase and the price has reached a new high, it suggests that the pursuit is underway.”

The crucial psychological milestone of $100,000 is expected to be reached in the upcoming weeks, and this breakthrough could happen as early as Thursday. It seems likely that this level will be reached. There is a chance that this new development will take place.

This task will be carried out against the backdrop of this historical era. In addition, if Trump were to win a second term, federal budget deficits would increase, inflation would likely increase, and the dollar’s position in international affairs would change.

The administration that Trump would run during his presidency would be responsible for these consequences. All of these characteristics would positively impact the value of Bitcoin as a currency if they were taken into account in the order that they are presented.

The price of bitcoin had risen by more than 130% by the beginning of 2024.

SOUREC: CNBC

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