Why Montana's TikTok ban faces massive challenges

In this article:

Montana on Wednesday became the first state in the country to ban TikTok. But experts say you shouldnโ€™t expect the measure to survive challenges in the courts.

In addition to the technical difficulties of banning an app in a specific geographic location, the law, SB 419, likely violates Montana residentsโ€™ First Amendment rights.

โ€œThe ban is a dramatic and unconstitutional incursion on the First Amendment rights of Montanans,โ€ Ramya Krishnan, staff attorney at the Knight First Amendment Institute and a lecturer in law at Columbia Law School, told Yahoo Finance. โ€œTo justify the ban, Montana would have to show that it's necessary to prevent actual harms. And it hasn't done this.โ€

The law, which goes into effect Jan. 1, 2024, would hold companies like Apple (AAPL) and Google (GOOG, GOOGL) liable if they make TikTok available for download in the state. Each violation would cost the companies $10,000 per user and an additional $10,000 for each day the app remains available.

In a statement after signing the bill, Gov. Greg Gianforte said the Chinese Communist Party is using TikTok to โ€œspy on Americans, violate their privacy, and collect personal, private, and sensitive information.โ€

The broader problem for Montanaโ€™s law, experts say, is that itโ€™s simply too broad.

โ€œThe legal hurdle is the First Amendment,โ€ David Greene, civil liberties director and senior staff attorney for the Electronic Frontier Foundation, explained via email. โ€œThis law, as a restriction on the way Montanans speak and receive speech, will need to be justified by the state as an appropriately narrow and effective way of protecting Montanansโ€™ personal data. That will be very difficult to do.โ€

Fans stand near a TikTok logo during the fourth inning of a baseball game between the New York Yankees and the Minnesota Twins Friday, April 14, 2023, in New York. (AP Photo/Frank Franklin II)
Banned in Billings: Fans stand near a TikTok logo during the fourth inning of a baseball game in NYC. (AP Photo/Frank Franklin II) (ASSOCIATED PRESS)

Vague allegations

The US has long accused TikTok of collecting data on Americans and feeding it to the Chinese government. Reasons include, potentially, building a database on American users, storing data to blackmail citizens, or trying to spread disinformation online.

The main fear is that China can use its national intelligence law to force TikTok parent company ByteDance to turn over any data on American users to the Chinese government. TikTok, however, has said it has never shared information with the Chinese government.

To assuage US fears that China can gain access to Americansโ€™ user data, TikTok is working with Oracle (ORCL) to move all US user data to that companyโ€™s servers. The cloud provider will also audit TikTokโ€™s code. But according to Bloomberg, that process is on hold.

Sign up for Yahoo Finance's tech newsletter.
Sign up for Yahoo Finance's tech newsletter. (Yahoo Finance)

Neither the US government nor Montana has provided concrete evidence that China is siphoning American user data from TikTok. And thatโ€™s a major problem for the new law. โ€œSpeculative harms can't justify a total ban on a communications platform, let alone one that is used by...Americans in the state of Montana,โ€ said Krishnan.

Even enforcing the ban could prove problematic for Montana. If the state chooses to determine residentsโ€™ locations based on their internet protocol addresses, they could accidentally block citizens of bordering states from downloading TikTok, as well. Montanans could also use virtual private networks to mask their location and download the app anyway.

A privacy law?

Rather than outright banning TikTok, experts say the best way to address concerns that the company is harvesting Americansโ€™ data is through a national data privacy law. Congress has discussed the topic for years without passing any legislation.

โ€œFirst look at passing a federal privacy lawโ€ฆto ensure that there are specific limits and rules for the road of how any online service, TikTok included, can collect and use and share people's personal information,โ€ Emma Llansรณ, director of the Center for Democracy and Technology's Free Expression Project told Yahoo Finance.

โ€œThat would be an enormous step forward for people's privacy, and would not require banning any apps whatsoever.โ€

According to Llansรณ, the government could also put restrictions on how data brokers in the US share Americansโ€™ information.

โ€œThey could put limits on that or put a stop to that, and that would be a much more meaningful way to protect the safety and security of people's data from foreign government surveillance,โ€ she explained.

Regardless, we wonโ€™t have to wait long to find out how Montanaโ€™s ban will fare in the courts. According to Reuters, a group of five Montana TikTok users are already suing the state to block the ban.

The clock is ticking.

Daniel Howley is the tech editor at Yahoo Finance. He's been covering the tech industry since 2011. Follow him @DanielHowley

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube

Find live stock market quotes and the latest business and finance news

Advertisement