TikTok and its U.S. employees are planning to take President Donald Trump’s administration to court over his sweeping order to ban the popular video app, according to a lawyer preparing one of the lawsuits.
The employees’ legal challenge to Trump’s executive order will be separate from a pending lawsuit from the company that owns the app, though both will argue that the order is unconstitutional, said Mike Godwin, an internet policy lawyer representing the employees.
Trump last week ordered sweeping but vague bans on dealings with the Chinese owners of TikTok and messaging app WeChat, saying they are a threat to U.S. national security, foreign policy and the economy. The TikTok order would take effect in September, but it remains unclear what it will mean for the apps’ 100 million U.S. users, many of them teenagers or young adults who use it to post and watch short-form videos.
It’s also unclear if it will make it illegal for TikTok to pay its roughly 1,500 workers in the U.S., which is why some of them came to Godwin for help, he said. The order would prohibit “any transaction by any person” with TikTok and its Chinese parent company ByteDance.
“Employees correctly recognize that their jobs are in danger and their payment is in danger right now,” Godwin said.
TikTok said in a statement last week that it was “shocked by the recent Executive Order, which was issued without any due process.” It declined to comment Thursday on whether it is pursuing its own lawsuit.
“We have no involvement with and are not co-ordinating on” the employee-led initiative, said TikTok spokeswoman Hilary McQuaide said via email. “We respect the rights of employees to engage in concerted activity to seek due process of law.”
The Fifth and 14th Amendments to the U.S. Constitution safeguard life, liberty and property from arbitrary government action lacking “due process of law.”
Microsoft is in talks to buy parts of TikTok, in a potential sale that’s being forced under Trump’s threat of a ban.
White House press secretary Kayleigh McEnany defended Trump’s TikTok and WeChat orders Thursday, telling reporters he was exercising his emergency authority under a 1977 law enabling the president to regulate international commerce to address unusual threats.
“The administration is committed to protecting the American people from all cyber threats and these apps collect significant amounts of private data on users,” said McEnany, adding that the Chinese government can access and use such data.
TikTok said it spent nearly a year trying to engage in “good faith” with the U.S. government to address these concerns.
“What we encountered instead was that the Administration paid no attention to facts, dictated terms of an agreement without going through standard legal processes, and tried to insert itself into negotiations between private businesses,” the company’s statement said.
Godwin said he was retained by Patrick Ryan, who joined TikTok from Google earlier this year as a technical program manager. Ryan posted a public fundraising pitch on GoFundMe this week to raise money for attorneys who can “fight this unconstitutional taking.”
“This is unprecedented,” Ryan wrote. “And it’s frankly really uncool.”
Unlike other Chinese tech companies targeted by Trump, such as telecom giant Huawei, TikTok’s widespread popularity among Americans adds a layer of complexity to its legal and political challenges. The looming ban has annoyed TikTok users, some of them Trump supporters like Pam Graef of Metairie, Louisiana.
The 53-year-old fitness instructor found nearly instant TikTok fame after downloading the app this summer and posting a video of herself dancing frenetically in a kitchen as someone pretending to be her embarrassed daughter shouts that she’s doing it wrong. The video has nearly 3.5 million views.
“I don’t want it to be banned. It’s just a blast,” Graef said. “It’s a way for me to promote my virtual training and virtual classes.”
She said Trump won’t lose her vote over this, but she doesn’t understand all the fuss about the app’s Chinese ownership. “What are they gaining by spying on us?” Graef said. “We’re just doing stupid videos and having fun.”
The Wall Street Journal reported on Tuesday that, until late last year, the TikTok app was able to track users of Android phones without their consent by collecting unique phone identifiers in a way that skirted privacy safeguards set by Google. TikTok responded that the technique it used is a common way to prevent fraud and said it no longer collects the unique identifier.
The company has repeatedly said that the way it collects data is typical for thousands of mobile apps. “We have made clear that TikTok has never shared user data with the Chinese government, nor censored content at its request,” said its statement last week.
Trump’s actions follow the lead of India, which has expressed similar security concerns and earlier this summer banned TikTok and dozens of other Chinese apps amid a military standoff between the two countries.
Godwin said the employees’ legal challenge will be focused on worker rights, not on the national security claims underlying Trump’s order.
The civil rights lawyer, known in early internet culture for coining “Godwin’s law,” which posits that all online debates will eventually devolve into the use of Nazi analogies, said employees can’t afford to wait.
“We have to proceed very quickly,” he said Thursday. “If we wait around for the order to be enforced, which it will be on September 20, then the workers will lose their chances to be paid.”
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Aamer Madhani contributed to this report from Washington.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
