A federal court has jointly dismissed a lawsuit concerning a 2023 Senate Bill aimed at banning TikTok in Montana. The case involved the Trump Administration, the Chinese government, and TikTok reaching an agreement to sell TikTok’s U.S. operations to a joint consortium that includes Oracle and Silver Lake. ByteDance, TikTok’s parent company, will maintain a 19.9% stake, with its CEO remaining on the board. The decision follows concerns over ByteDance’s links to Beijing and data collection practices.
Montana Attorney General Austin Knudsen has been critical of TikTok, leading to a ban on state devices and a subsequent state law banning the app. This law faced a legal challenge, with TikTok asserting that American data was not stored in China. The bill included a condition that its provisions would be void if TikTok was sold, which has now been met, rendering the bill void.
Some Montana small business owners lamented the ban, citing its detrimental effect on marketing. Concerns over free speech violations were also part of the legal discussions. The agreement reached in President Trump’s Executive Order 14352, “Saving TikTok While Protecting National Security,” was key to triggering the bill’s nullification.
Knudsen expressed satisfaction with the resolution, stating, “President Trump…succeeded in finding the right American company to purchase TikTok.” He emphasized that this dismissal concludes costly litigation initiated by TikTok. However, more social media legislation may follow, led by Rep. Amy Regier’s previous efforts to introduce content filters on electronic devices.
Gov. Greg Gianforte highlighted concerns about social media’s impact on children at recent events, noting increased rates of suicide and depression among minors. “We’re working to get some protections for minors on social media,” Gianforte stated, underlining the ongoing legislative focus on safeguarding young people.
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