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.



TikTok Calls Report of Possible Sale to Musk's X 'Pure Fiction'

The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)
The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)
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TikTok Calls Report of Possible Sale to Musk's X 'Pure Fiction'

The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)
The TikTok logo is displayed outside the offices of the social media app's company offices in Culver City, California, on March 16, 2023. (AFP)

TikTok on Tuesday labeled as "pure fiction" a report that China is exploring a potential sale of the video-sharing platform's US operations to billionaire Elon Musk as the firm faces an American law requiring imminent Chinese divestment.

Citing anonymous people familiar with the matter, Bloomberg News had earlier reported that Chinese officials were considering selling the company's US operations to Musk's social media platform X.

The report outlined one scenario being discussed in Beijing where X would purchase TikTok from Chinese owner ByteDance and combine it with the platform formerly known as Twitter.

"We cannot be expected to comment on pure fiction," a TikTok spokesperson told AFP.

The report estimated the value of TikTok's US operations at between $40 billion and $50 billion.

Although Musk is currently ranked as the world's wealthiest person, Bloomberg said it was not clear how Musk could execute the transaction, or if he would need to sell other assets.

The US Congress passed a law last year that requires ByteDance to either sell its wildly popular platform or shut it down. It goes into effect on Sunday -- a day before President-elect Donald Trump takes office.

The US government alleges TikTok allows Beijing to collect data and spy on users and is a conduit to spread propaganda. China and ByteDance strongly deny the claims.

TikTok has challenged the law, taking an appeal all the way to the US Supreme Court, which heard oral arguments on Friday.

At the hearing, a majority of the conservative and liberal justices on the nine-member bench appeared skeptical of arguments by a lawyer for TikTok that forcing a sale was a violation of First Amendment free speech rights.

Bloomberg characterized Beijing's consideration of a possible Musk transaction as "still preliminary," noting that Chinese officials have yet to reach a consensus on how to proceed.

Musk is a close ally of Trump and is expected to play an influential role in Washington in the coming four years.

He also runs electric car company Tesla, which has a major factory in China and counts the country as one of the automaker's biggest markets.

Trump has repeatedly threatened to enact new tariffs on Chinese goods, which would expand a trade war begun in his first term and which was largely upheld, and in some cases supplemented, by outgoing President Joe Biden.