TikTok Warns of Broader Consequences if US Supreme Court Allows Ban

US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration
US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration
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TikTok Warns of Broader Consequences if US Supreme Court Allows Ban

US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration
US, Chinese flags, TikTok logo and gavel are seen in this illustration taken January 8, 2025. REUTERS/Dado Ruvic/Illustration

The lawyer for TikTok and its Chinese parent company ByteDance offered a warning during Supreme Court arguments over a law that would compel the sale of the short-video app or ban it in the United States: If Congress could do this to TikTok, it could come after other companies, too. The law, which was the subject of arguments before the nine justices on Friday, sets a Jan. 19 deadline for ByteDance to sell the popular social media platform or face a ban on national security grounds. The companies have sought, at the very least, a delay in implementation of the law, which they say violates the US Constitution's First Amendment protection against government abridgment of free speech, Reuters said.
Noel Francisco, representing TikTok and ByteDance, argued that Supreme Court endorsement of this law could enable statutes targeting other companies on similar grounds.
"AMC movie theaters used to be owned by a Chinese company. Under this theory, Congress could order AMC movie theaters to censor any movies that Congress doesn't like or promote any movies that Congress wanted," Francisco told the justices.
The justices signaled through their questions during the arguments that they were inclined to uphold the law, although some expressed serious concerns about its First Amendment implications.
TikTok is a platform used by about 170 million people in the United States, roughly half the country's population. Congress passed the measure last year with overwhelming bipartisan support, as lawmakers cited the risk of the Chinese government exploiting TikTok to spy on Americans and carry out covert influence operations.
Jeffrey Fisher, the lawyer representing TikTok content creators who also have challenged the law, noted during the Supreme Court arguments that Congress with this measure was focusing on TikTok and not major Chinese online retailers including Temu.
"Would a Congress (that is) really worried about these very dramatic risks leave out an e-commerce site like Temu that has 70 million Americans using it?" Fisher asked. "It's very curious why you just single out TikTok alone and not other companies with tens of millions of people having their own data taken, you know, in the process of engaging with those websites and equally, if not more, available to Chinese control." Democratic President Joe Biden signed the measure into law and his administration is defending it in this case. The deadline for divestiture is just one day before Republican Donald Trump, who opposes the ban, takes office as Biden's successor.
'FOREIGN ADVERSARIES'
Solicitor General Elizabeth Prelogar, arguing for the Biden administration in defending the law, said it was crucial that it take effect on Jan. 19 as scheduled in order to force ByteDance to act on divestiture.
"Foreign adversaries do not willingly give up their control over this mass communications channel in the United States," Prelogar said.
"When push comes to shove, and these restrictions take effect, I think it will fundamentally change the landscape with respect to what ByteDance is willing to consider. And it might be just the jolt that Congress expected the company would need to actually move forward with the divestiture process," Prelogar said.
If the ban takes affect on Jan. 19, Apple and Alphabet's Google would no longer be able to offer TikTok for downloads for new users but existing users could still access the app. The US government and TikTok agree that app would degrade and eventually become unusable over time because companies would not be able to offer supporting services.
The Supreme Court also debated whether the possibility of TikTok being used for covert influence campaigns or propaganda purposes by China justified the banning it.
"Look, everybody manipulates content," Francisco told the court. "There are lots of people who think CNN, Fox News, the Wall Street Journal, the New York Times are manipulating their content. That is core protected speech." Trump on Dec. 27 urged the court to put a hold on the Jan. 19 deadline to give his incoming administration "the opportunity to pursue a political resolution of the questions at issue in the case."
Under the law, the US president has the power to extend the Jan. 19 deadline for 90 days, but under circumstances that do not appear to apply to the current situation in which ByteDance has made no apparent effort to sell TikTok's US assets. The law mandates that the president certify that significant progress has been made toward a sale, with binding legal agreements.
Regardless, Trump does not become president until after the deadline - though Francisco said "we might be in a different world" once Trump is back in the White House.
Justice Brett Kavanaugh asked Prelogar whether the president could "say that we're not going to enforce this law?"
"I think as a general matter, of course the president has enforcement discretion," Prelogar said.
"Again, that's one of the reasons why I think it makes perfect sense to issue a preliminary injunction here and simply buy everybody a little breathing space," Francisco said.



Adobe Shares Drop after CEO Exit Adds to AI-disruption Concerns

FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo
FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo
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Adobe Shares Drop after CEO Exit Adds to AI-disruption Concerns

FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo
FILE PHOTO: Signage for Adobe is displayed at National Retail Federation (NRF) 2026: Retail's Big Show, in New York City, US, January 12, 2026. REUTERS/Kylie Cooper/File Photo

Adobe's shares plunged 9% in premarket trading on Friday after the Photoshop maker said CEO Shantanu Narayen would step down after 18 years at the helm, unsettling investors already wary of AI-driven disruptions to the design software market.

The longtime CEO's exit comes at a critical juncture as Adobe works to reassure investors it can keep pace with sweeping changes brought by artificial intelligence in the software landscape.

It follows a broader slide in software stocks after fears that ⁠AI agents could ⁠supplant some traditional applications that led to a nearly $1 trillion rout in software stocks globally last month.

"The loss of an iconic leader at a time of peak uncertainty around the future of software more broadly, and the positioning of Adobe ⁠specifically in this new GenAI world is bound to further investor uncertainty and anxiety around the shares," said analysts at Morgan Stanley.

Adobe's shares are down about 23% so far this year, extending a slide that has stretched over the past two years.

The company, which makes Illustrator, Premiere Pro and other tools for creative professionals, is among a group of SaaS providers including Salesforce that have ⁠struggled to win ⁠new clients amid a wave of AI start-ups.

On Thursday, Adobe reported double-digit growth in total revenue and customer subscription segments in the first quarter, reflecting resilient spending on its product suite.

"After steering the Adobe ship through rough seas over the past several years, several data points from the most recent quarter suggest the captain (Narayen) may have brought this franchise into a safe harbor, from which it can continue to thrive," Morgan Stanley analysts said.


AI Agent 'Lobster Fever' Grips China Despite Risks

A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
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AI Agent 'Lobster Fever' Grips China Despite Risks

A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)
A man wears a lobster hat that represents the OpenClaw logo, an open-source AI assistant at the Baidu headquarters in Beijing on March 11, 2026. (Photo by ADEK BERRY / AFP)

Chinese entrepreneur Frank Gao used to spend long hours running his social media accounts but now outsources the chore to AI agent tool OpenClaw, which is taking the country by storm despite official warnings over cybersecurity.

OpenClaw, created in November by an Austrian coder, differs from bots like ChatGPT because it can execute real-life tasks such as sending emails, organizing files or even booking flight tickets.

"Since January, I've spent hours on the lobster every day," Gao told AFP, referring to OpenClaw's red crustacean mascot. "We're family."

After downloading OpenClaw, users connect it to existing artificial intelligence models of their choice, then give it simple instructions through instant messaging apps, as if to a friend or colleague.

The tool has fascinated tech circles worldwide but particularly in China, gripping tech-savvy companies and individuals keen to keep up with the next big thing in AI.

Hundreds of people queued at tech giant Baidu's Beijing headquarters this week for an OpenClaw event where engineers helped attendees set up their "little lobsters".

It was one of many similar meetups to experiment with the tool, which are drawing crowds from Shanghai to Shenzhen.

Some municipalities, including the eastern cities of Wuxi and Hangzhou, have pledged hundreds of thousands of dollars to support the adoption and development of OpenClaw and other AI agents.

But the lobster fever, as it has been dubbed, has also sparked security concerns.

"What's truly scary about agents like OpenClaw is this: once they have your digital keys, they can theoretically access all the services you've authorized, and can autonomously decide when to activate them," Gao warned.

"The attacker effectively gains a 'master key' to your digital identity," said the engineer, who has named his OpenClaw agent "Q" after his business name QLab.

- 'Use with caution' -

Chinese national cybersecurity authorities and Beijing's ministry of industry and IT have warned of the risks of OpenClaw hacks.

"Use intelligent agents such as 'lobster' with caution," national IT research institute expert Wei Liang advised government agencies, public institutions, companies and individuals in a message on state media.

The mixed signals of rolling out policy incentives while issuing warnings "reflects the authorities' cautious tolerance towards 'lobster fever'," Zhang Yi, founder of tech consultancy iiMedia, told AFP.

Austrian programmer Peter Steinberger, who built OpenClaw to help organize his digital life, was hired last month by ChatGPT maker OpenAI.

Meanwhile, a separate team of coders that made Moltbook, a Reddit-like pseudo social network where OpenClaw agents converse, are joining Meta.

Top Chinese tech companies have also been quick to get involved.

The likes of Tencent, Alibaba, ByteDance and Baidu are offering simplified installation and affordable coding plans to help users who want to host OpenClaw agents on their cloud servers -- seen as safer than downloading it onto a personal computer.

In recent days AI companies big and small have also launched their own competing agent tools, such as ByteDance's ArkClaw, Tencent's WorkBuddy and Zhipu AI's AutoClaw.

The relatively low cost for cloud deployment of OpenClaw in China, subsidised by big tech firms, is one factor behind its popularity, said Gao Rui, a senior product manager at Baidu AI Cloud.

"For most people, it's likely just the price of a cup of coffee... which is why people will probably be keen to give it a try," she told AFP.

- FOMO -

Fear of missing out is also a big driver behind OpenClaw's success in China, said Chen Yunfei, an AI developer who created a popular online guide for using the tool.

"Most Chinese people are quite studious and forward-looking, so when confronted with new things, they might have stronger feelings" of so-called FOMO, he said.

Xie Manrui, a programmer whose latest project is a visualized system for managing OpenClaw agents, said the tool had arrived "at the right moment" to change perceptions in China of what AI can do.

"For many, AI is merely a clever chatbot that talks all the time but cannot act," he said.

Either way, it has piqued the curiosity of many young users.

At the Baidu event in Beijing, 24-year-old college student Zheng Huimin was waiting patiently in line with her friends.

"I'd like to give it a go to see what tasks it can actually help me accomplish," she told AFP.


EU Spokesperson: X Submits Remedies Relating to Blue Check Mark

FILE PHOTO: A 3D-printed miniature model of Elon Musk and the X logo are seen in this illustration taken January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D-printed miniature model of Elon Musk and the X logo are seen in this illustration taken January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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EU Spokesperson: X Submits Remedies Relating to Blue Check Mark

FILE PHOTO: A 3D-printed miniature model of Elon Musk and the X logo are seen in this illustration taken January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: A 3D-printed miniature model of Elon Musk and the X logo are seen in this illustration taken January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

Elon Musk's social media platform X has submitted remedies in relation to its blue checkmark verification feature following a fine of 120 million euros ($137.63 million), a European Commission spokesperson said on Friday.

EU tech regulators fined X in December for breaching online content rules, the first such action under a landmark legislation that drew criticism from the US government.

Here are the details:

The Commission will ⁠now carefully assess ⁠the proposed remedies, European Commission spokesperson Thomas Regnier added, without giving details.

X did not immediately respond to Reuters requests for comment.

The EU action against X had followed a two-year-long investigation under ⁠the bloc's Digital Services Act (DSA), which requires online platforms to do more to tackle illegal and harmful content.

The European Commission in July 2024 had charged X with deceiving users, saying that the blue checkmark does not correspond to industry practices and that anyone can pay to get a "verified" status.

Bloomberg News first reported on ⁠Thursday ⁠that X has agreed to change its verification mechanism in the European Union.

The blue checkmark had previously indicated that an account belonged to a public figure whose identity was verified, but Musk changed it to indicate it belonged to a paid subscriber after acquiring X, formerly known as Twitter, in 2022.