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    Home » TikTok accuses federal agency of “political demagoguery” in legal challenge against potential U.S. ban

    TikTok accuses federal agency of “political demagoguery” in legal challenge against potential U.S. ban

    By SHOOTThursday, June 20, 2024Updated:Sunday, July 7, 2024No Comments1135 Views
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    The icon for the video sharing TikTok app is seen on a smartphone, Feb. 28, 2023, in Marple Township, Pa. (AP Photo/Matt Slocum, File)

    By Haleluya Hadero

    --

    TikTok disclosed a letter Thursday that accused the Biden administration of engaging in "political demagoguery" during high-stakes negotiations between the government and the company as it sought to relieve concerns about its presence in the U.S.

    The letter — sent to David Newman, a top official in the Justice Department's national security division, before President Biden signed the potential TikTok ban into law — was submitted in federal court along with a legal brief supporting the company's lawsuit against measure. TikTok's Beijing-based parent company ByteDance is also a plaintiff in the lawsuit, which is expected to be one of the biggest legal battles in tech and internet history.

    The internal documents provide details about negotiations between TikTok and the Committee on Foreign Investment in the United States, a secretive inter-agency panel that investigates corporate deals over national security concerns, between January 2021 and August 2022.

    TikTok has said those talks ultimately resulted in a 90-page draft security agreement that would have required the company to implement more robust safeguards around U.S. user data. It would have also required TikTok to put in a "kill switch" that would have allowed CFIUS to suspend the platform if it was found to be non-compliant with the agreement.

    However, attorneys for TikTok said the agency "ceased any substantive negotiations" with the company after it submitted the draft agreement in August 2022.

    CFIUS did not immediately respond to a request for comment. The Justice Department said it is looking forward to defending the recently enacted legislation, which it says addresses "critical national security concerns in a manner that is consistent with the First Amendment and other constitutional limitations."

    "Alongside others in our intelligence community and in Congress, the Justice Department has consistently warned about the threat of autocratic nations that can weaponize technology — such as the apps and software that run on our phones – to use against us," the statement said. "This threat is compounded when those autocratic nations require companies under their control to turn over sensitive data to the government in secret."

    The letter sent to Newman details additional meetings between TikTok and government officials since then, including a March 2023 call the company said was arranged by Paul Rosen, the U.S. Treasury's undersecretary for investment security.

    According to TikTok, Rosen told the company that "senior government officials" deemed the draft agreement to be insufficient to address the government's national security concerns. Rosen also said a solution would have to involve a divestment by ByteDance and the migration of the social platform's source code, or its fundamental programming, out of China.

    TikTok's lawsuit has painted divestment as a technological impossibility since the law requires all of TikTok's millions of lines of code to be wrested from ByteDance so that there would be no "operational relationship" between the Chinese company and the new U.S. app.

    After the Wall Street Journal reported in March 2023 that CFIUS had threatened ByteDance to divest TikTok or face a ban, TikTok's attorneys held another call with senior staff from the Justice and Treasury departments where they said leaks to the media by government officials were "problematic and damaging."

    That call was followed by an in-person meeting in May 2023 between TikTok's attorneys, technical experts and senior staff at the Treasury Department focused on data safety measures and TikTok's source code, the company's attorneys said. The last meeting with CFIUS occurred in September 2023.

    In the letter to Newman, TikTok's attorneys say CFIUS provides a constructive way to address the government's concern. However, they added, the agency can only serve this purpose when the law – which imposes confidentiality – and regulations "are followed and both sides are engaged in good-faith discussions, as opposed to political subterfuge, where CFIUS negotiations are misappropriated for legislative purposes."

    The legal brief also shared details of, but does not include, a one-page document the Justice Department allegedly provided to members of Congress in March, a month before they passed the federal bill that would require the platform to be sold to an approved buyer or face a ban.

    TikTok's attorneys said the document asserted TikTok collects sensitive data without alleging the Chinese government has ever obtained such data. According to the company, the document also alleged that TikTok's algorithm creates the potential for China to influence content on the platform without alleging the country has ever done so.

    Haleluya Hadero is an AP business writer

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    Tags:ByteDanceTikTok



    Berkshire Hathaway boosted stake in Google parent Alphabet

    Saturday, August 15, 2026
    Shareholders wait in line outside CHI Health Center Omaha for the Berkshire Hathaway annual meeting, May 2, 2026, in Omaha, Neb. (AP Photo/Rebecca S. Gratz, File)

    Berkshire Hathaway is increasing the size of its stake in Google's parent company and beefing up its holdings in homebuilders, according to the conglomerate's latest snapshot of its investment portfolio.

    The Omaha, Nebraska-based company also continued to pare its stake in financial companies and a number of other stocks in the April-June quarter, according to a regulatory filing filed late Friday.

    CEO Greg Abel, who took over from Warren Buffett at the start of the year, agreed in June to make a $10 billion stock investment in Alphabet, expanding on the stake that Berkshire started to build last fall.

    In the second quarter, Berkshire picked up roughly 48.1 million shares in Alphabet, bringing its total shares in the tech giant to roughly 106 million. That stake was valued at about $37.76 billion as of June 30, according to the filing. As recently as the end of December, Berkshire held only 17.8 million Alphabet shares worth $5.6 billion.

    Alphabet has said it plans to raise $80 billion to pay for the computing infrastructure needed to power its AI offerings.

    Beyond tech, Berkshire continued to boost its investments in the U.S. homebuilding sector. Its stake in homebuilder Lennar increased nearly 30% in the second quarter. Berkshire also established a small new stake in D.R. Horton that was worth $580,504 at the end of June.

    In July, Berkshire completed a $6.8 billion acquisition of homebuilder Taylor Morrison.

    Berkshire also sharply increased its shares in Delta Air Lines and Macy's in the second quarter. The stakes were worth about $5.37 billion and $173 million, respectively, as of June 30.

    Berkshire also pruned its investment portfolio in the second quarter, reducing its stake in several companies relative... Read More

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