TikTok CEO Chew: Montana’s Ban on the App ‘Unconstitutional’ 

In this photo provided by the Montana Governor's Office, Republican Gov. Greg Gianforte signs a law banning TikTok in the state, May 17, 2023, in Helena, Mont. (Montana Governor's Office via AP, File)
In this photo provided by the Montana Governor's Office, Republican Gov. Greg Gianforte signs a law banning TikTok in the state, May 17, 2023, in Helena, Mont. (Montana Governor's Office via AP, File)
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TikTok CEO Chew: Montana’s Ban on the App ‘Unconstitutional’ 

In this photo provided by the Montana Governor's Office, Republican Gov. Greg Gianforte signs a law banning TikTok in the state, May 17, 2023, in Helena, Mont. (Montana Governor's Office via AP, File)
In this photo provided by the Montana Governor's Office, Republican Gov. Greg Gianforte signs a law banning TikTok in the state, May 17, 2023, in Helena, Mont. (Montana Governor's Office via AP, File)

TikTok CEO Shou Zi Chew said on Tuesday the US state of Montana's ban of the app was unconstitutional and that he was confident his company will prevail in a lawsuit challenging the decision.

The Chinese-owned company filed a lawsuit on Monday against Montana's decision to ban TikTok from operating in the state to protect residents from alleged intelligence gathering by China.

"We believe that the Montana bill that was recently passed is simply unconstitutional," Chew told the Qatar Economic Forum organized by Bloomberg.

US lawmakers and state government officials have called for a nationwide ban on the video-sharing app, which is used by more than 150 million Americans, over concerns about potential Chinese government influence over the platform.

"The Chinese government never asked us for US users' data and we will not provide even if asked," Chew said.

Chew said his company has worked with Oracle to keep US users data stored in the United States.

"Today by default, all US data is stored in the Oracle cloud service already," he said.

"We have built over the last two years something we call internally 'Project Texas', which ensures that American data is stored on American soil by an American company and overseen by American personnel," Chew added.

In March, a congressional committee grilled Chew about whether the Chinese government could access user data or influence what Americans see on the app.

But calls to ban TikTok nationwide or give the Biden administration new powers to crack down or ban TikTok have not advanced in Congress.

Montana could impose fines of $10,000 for each violation by TikTok and additional fines of $10,000 per day if it violates the ban. The law does not impose penalties on individual TikTok users. It is not clear how Montana would enforce a TikTok ban.



Google Faces More Scrutiny as UK Watchdog Flexes New Digital Competition Powers

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake/File Photo
The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake/File Photo
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Google Faces More Scrutiny as UK Watchdog Flexes New Digital Competition Powers

The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake/File Photo
The logo of Google LLC is shown at an entrance to one of their buildings in San Diego, California, US, October 9, 2024. REUTERS/Mike Blake/File Photo

Britain's competition watchdog flexed new digital market powers on Monday for the first time with an investigation into Google's search and search ad businesses.

Under beefed-up rules that took effect this month designed to protect consumers and businesses from unfair practices by Big Tech companies, the Competition and Markets Authority said it would determine whether Google should be given “strategic market status” that would require imposing changes to the company's behavior. The investigation adds to global scrutiny that the US tech giant is facing, The AP reported.

The Competition and Markets Authority said it will examine whether Google is using its position in the market to stifle innovation and block rivals. The regulator said it will look in particular at Google's role in shaping the development of new artificial services and interfaces such as “answer engines," in ways that “limit the competitive constraint they impose on Google Search.”

AI-powered chatbots have become increasingly popular with internet users looking for information online. Google last year retooled its search engine so that it now frequently favors responses crafted by artificial intelligence over website links.

Google said in a statement that it "will continue to engage constructively with the CMA to ensure that new rules benefit all types of websites, and still allow people in the UK to benefit from helpful and cutting-edge services.”

AI's potential to transform online search services means fair competition is important, said Sarah Cardell, the UK regulator's chief executive.

“It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal — for example in how their data is collected and stored,” Cardell said in a statement. “And for businesses, whether you are a rival search engine, an advertiser or a news organisation, we want to ensure there is a level playing field for all businesses, large and small, to succeed.”

The CMA will also look into concerns about "exploitative conduct" by Google, including its practice of collecting vast amounts of consumer data without informed consent, and its use of content by website publishers — which could range from major media outlets to startups focusing on narrow subjects — without paying them fairly.

It will also investigate whether Google is giving preference to its own services, such as specialized search shopping or travel services.

The UK investigation is the latest salvo in an onslaught of regulatory pressure that Google is facing on both sides of the Atlantic.

In both the US and Canada, authorities are targeting Google’s ad business with lawsuits accusing the company of anticompetitive or monopolistic conduct in the digital ad industry, which they want to resolve by breaking up the company.

European Union regulators, meanwhile, have been carrying out their own antitrust investigation and signaled that they would push for Google to sell off parts of its business in order to satisfy concerns about its lucrative digital ad business.

The CMA has until October to finish its investigation and said it could, for example, force Google to make changes to its data practices.

The regulator has said it expects to open three to four “strategic market status” investigations of the very largest tech companies in the first year after its new powers took effect.

Shares of Google's parent, Alphabet Inc., were essentially flat before the opening bell Tuesday.