Experts believe the legal challenge may succeed, underscoring the need for a federal solution. In part, the company purports that the ban infringes on the company's right to disseminate and promote third-party speech and is preempted by the federal government, which controls national security issues. District Court for the District of Montana and asked for an injunction to prevent the state from enforcing the ban. TikTok is challenging the law on constitutional grounds, including violating free speech protections. Despite initial momentum, Congress appears to be slow-walking after members on both sides of the aisle have come out against a ban due to First Amendment concerns. These bills range from granting the Biden Administration the authority to block certain transactions involving foreign companies that threaten national security to a nationwide ban of the app. Multiple bills – such as the RESTRICT Act and the Deterring America's Technological Adversaries (DATA) Act – continue to circulate, but neither chamber has held a vote on TikTok-related legislation. Montana's TikTok law comes after efforts to curtail TikTok data-sharing practices at the federal level have stalled.
The new ban seeks to prevent TikTok from infringing on Montanans' privacy by storing user information and data and sharing that data with the Chinese Communist Party. App stores that continue to offer TikTok after the ban is in effect could face penalties starting at $10,000.
Greg Gianforte signed into law a bill on May 17, 2023, banning app stores from offering TikTok in the state beginning Jan. LEGISLATIVE UPDATES Montana Becomes 1st State to Ban TikTok Montana Gov.
If you see anything in this report that you would like additional information on, please reach out to authors or members of Holland & Knight's Data Strategy, Security & Privacy Team. Copyright © 2023 Holland & Knight LLP All Rights Reserved 1 Data Privacy and Security Report: May 2023 A monthly roundup of federal data privacy and security policy and regulatory news Welcome back to Holland & Knight's monthly data privacy and security news update that includes the latest in policy, regulatory updates and other significant developments.
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