TikTok Faces Tough Questions from Court over Challenge to US Law

A view of the E. Barrett Prettyman US Court House in Washington, DC on September 16, 2024. (AFP)
A view of the E. Barrett Prettyman US Court House in Washington, DC on September 16, 2024. (AFP)
TT

TikTok Faces Tough Questions from Court over Challenge to US Law

A view of the E. Barrett Prettyman US Court House in Washington, DC on September 16, 2024. (AFP)
A view of the E. Barrett Prettyman US Court House in Washington, DC on September 16, 2024. (AFP)

A lawyer for TikTok and Chinese parent company ByteDance faced tough questions on Monday as a US appeals court heard arguments in their lawsuit seeking to block a law that could ban the short video app used by 170 million Americans as soon as Jan. 19.

A three-judge panel of the US Court of Appeals for the District of Columbia began hearing arguments in the suit filed by TikTok and ByteDance in May seeking an injunction barring the law from taking effect.

The judges questioned TikTok's outside lawyer Andrew Pincus, who argued that the US government had not demonstrated that TikTok poses national security risks and that the law violates the US Constitution on a number of grounds including running afoul of First Amendment free speech protections.

"The law before this court is unprecedented, and its effect would be staggering," Pincus told the judges, saying "for the first time in history, Congress has expressly targeted a specific US speaker, banning its speech and the speech of 170 million Americans."

The law gives ByteDance until Jan. 19 to sell or divest TikTok's US assets or face a ban in the United States. Driven by worries among American lawmakers that China could access data on Americans or spy on them with the app, the US Congress passed the measure with overwhelming support and President Joe Biden signed it into law in April.

The law prohibits app stores like Apple and Alphabet's Google from offering TikTok and bars internet hosting services from supporting TikTok unless ByteDance divests TikTok by the deadline. Under the law, Biden could extend the deadline by three months if he certifies ByteDance is making significant progress toward a sale.

Judges Sri Srinivasan, Neomi Rao and Douglas Ginsburg were hearing the arguments.

The case is playing out during the final weeks of the US presidential campaign. Republican presidential candidate Donald Trump and Vice President Kamala Harris, his Democratic rival, are active on TikTok, seeking to court younger voters.

The Justice Department has said TikTok, under Chinese ownership, poses a serious national security threat because of its access to vast amounts of personal data on Americans, asserting China can covertly manipulate information that Americans consume via TikTok.

ByteDance has said divestiture is "not possible technologically, commercially or legally."

TikTok and the Justice Department have asked for a ruling by Dec. 6, which could allow the US Supreme Court to consider any appeal before a ban takes effect.

The White House has said it wants to see Chinese-based ownership ended on national security grounds, but not a ban on TikTok. Trump, who unsuccessfully tried to ban TikTok in 2020, has said if elected in November he would not allow TikTok to be banned.



Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
TT

Volkswagen Workers to Go on Warning Strikes Across Germany

The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo
The Volkswagen logo is displayed on the Volkswagen power plant on the day when Volkswagen AG and the industrial union IG Metall started talks over a new labor agreement for six of its German plants, in Wolfsburg, Germany, September 25, 2024. REUTERS/Annegret Hilse/File Photo

Volkswagen workers will go on warning strikes on Monday at plants across Germany, labor union IG Metall said, marking the first large-scale walkouts at Volkswagen's domestic operations since 2018.

The start of the strikes represents a further escalation of a dispute between Europe's top carmaker and its workers over mass layoffs, pay cuts and possible plant closures - drastic measures the company says it cannot rule out in the face of Chinese competition and cooling consumer demand.

Labor representatives at VW had on Nov. 22 voted for limited strikes at German operations from early December after talks over wages and plant closures failed to achieve a breakthrough, Reuters reported.

"If necessary, this will be the toughest collective bargaining battle Volkswagen has ever seen," IG Metall negotiator Thorsten Groeger said in a statement.

The carmaker said it continues to rely on constructive dialogue to find a sustainable solution.

"Volkswagen respects the right of employees to take part in a warning strike," a spokesperson said in reply to the union's announcement, adding that the company had taken steps in advance to ensure a basic level of supplies to customers and minimise the impact of the strike.

Warning strikes in Germany usually last from a few hours.

The union had last week proposed measures it said would save 1.5 billion euros ($1.6 billion), including forgoing bonuses for 2025 and 2026, which Europe's top carmaker dismissed.

Volkswagen has demanded a 10% wage cut, arguing it needs to slash costs and boost profit to defend market share in the face of cheap competition from China and a drop in European car demand.

The company is threatening to close plants in Germany for the first time in its 87-year history.

"Volkswagen has set fire to our collective agreements and instead of extinguishing this fire in three collective bargaining sessions, the management board is throwing open barrels of petrol into it," Groeger said.

An agreement not to stage walkouts had ended on Saturday, IG Metall said, enabling workers to carry out warning strikes from Sunday across VW AG's German plants.

"Warning strikes will start at all plants from Monday. How long and how intensive this confrontation needs to be is Volkswagen's responsibility at the negotiating table," Groeger said.

Labor representatives and management will meet again on Dec. 9 to carry on negotiations over a new labor agreement for workers at the German business - VW AG - with unions vowing to resist any proposals that do not provide a long-term plan for every VW plant.