While TikTok waits to see if it can delay an upcoming ban in the US, speculation is swirling about what options ByteDance, the app's parent company, might have to survive in one of its largest markets.
A US federal appeals court last week a law passed by Congress that gives China-based ByteDance until January 19 to divest TikTok's assets, or be banned in the US.
The law, which received bipartisan support, is rooted in national security concerns over the fear of user data being compromised by China, although those claims have been consistently disputed by ByteDance. “A modest delay in enforcing the Act will simply create breathing room for the Supreme Court to conduct an orderly review and for the incoming administration to evaluate this matter – before one of this country’s most important speech platforms is shuttered,” read TikTok's injunction request.
“In its public submissions, the government sought to defend the Act based on purported concerns about China manipulating the content Americans see on TikTok or misappropriating their private data … The government repeatedly admitted, however, that it has no evidence that China has ever engaged in such behaviour.”
In response to TikTok's request for an injunction, the US Justice Department on Thursday filed an argument for the circuit court to turn down the request.
"Continued Chinese control of the TikTok application poses a continuing threat to national security, and both Congress and this Court took account of the competing interests of users of the application," the argument read in part.
Mark MacCarthy, a senior fellow at the Institute for Technology Law and Policy at Georgetown Law in Washington, said he believes TikTok's request for a conditional stay will probably be granted, potentially extending the January 19 deadline set by bipartisan legislation.
“I think the Supreme Court will take up the case,” Prof MacCarthy said, noting that the court battle could set a precedent. “It is a compelling conflict between First Amendment jurisprudence and the national security state and the court will want to issue a definitive judgment.”
Ultimately, he believes the Supreme Court will uphold the circuit court's decision. “It will probably give full discretion to the government with a rational national security demand conflicting with the First Amendment,” he explained, before pivoting to his own personal stance on the law that puts TikTok's US future in jeopardy.
“A TikTok ban would be terrible on policy grounds but it should withstand constitutional challenge,” he said, saying that he thinks the law is too rooted in a confrontational US policy towards China which could quickly escalate. Some have also speculated the success of TikTok in the US has caused jealousy due in part to the fact that it wasn't created by a US company, which in turn has fuelled efforts to get the platform banned.
Will Trump save TikTok?
Though he expressed concern about TikTok's China ownership during his first term in the White House, during his 2024 presidential run, Donald Trump changed his mind. He joined the platform and quickly gained 14.7 million followers, consistently using the video-sharing social app to communicate with supporters and provoke detractors. Mr Trump also used his own app, Truth Social, to announce that he wanted to prevent TikTok from being banned in the US.
“For all those who want to save TikTok in America, vote Trump,” he said in a post on his Truth Social platform on September 4. In a video that lasted less than one minute, he said he was “now a big star on TikTok” and added that “we're setting records”, referring to his 14.5 million followers on the platform.
Even as President, however, Mr Trump's path to saving TikTok is narrow. He could try to convince Congress to repeal the law, but it could be risky for him to spend political capital on legislation that received Democratic and Republican support.
What would a ban look like?
Barring any decision from the Supreme Court that would deem the TikTok legislation unconstitutional, or any move from president-elect Trump that would have Congress repeal the law, when January 19 arrives TikTok will probably be removed from iPhone and Android app stores. It will continue to work for most, at least until app updates make it unusable in the US.
It is highly unlikely, although not impossible, that the platform will be blocked overnight. ByteDance has repeatedly said it has no plans to follow the legislation that requires it to sell TikTok's assets to a US entity, but there is a scenario in which it could sell other parts of the app such as the user accounts, while retaining the coveted TikTok algorithm.
Under that sort of arrangement, however, the algorithm which helps fuel TikTok's popularity would remain under ByteDance's control, rendering other assets less valuable. Some US investors and entrepreneurs have pitched the idea of buying TikTok, but nothing has come to fruition, and again, ByteDance says it has no plans to sell.
Palestine Information Office v Shultz
During the initial hearing, in which TikTok's lawyers fought for the platform's survival, circuit court judges brought up a case known as Palestine Information Office v Shultz, which they said provided precedent to force the sale of TikTok. The case of PIO v Shultz stretches back to 1987, when then US secretary of state George Shultz, and ultimately the US State Department, ordered the closure of the Palestine Information Office in Washington DC.
That decision stemmed from a US law passed in 1982 known as the Foreign Missions Act, which led to tighter regulation with regard to foreign missions inside the US. Since the US classified the Palestine Liberation Organisation as a terrorist group, it applied the Foreign Missions Act to the Palestine Information Office as well. The law was challenged, but upheld.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
Five%20calorie-packed%20Ramadan%20drinks
%3Cp%3E%3Cstrong%3ERooh%20Afza%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20contains%20414%20calories%0D%3Cbr%3E%3Cstrong%3ETang%20orange%20drink%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20serving%20contains%20300%20calories%0D%3Cbr%3E%3Cstrong%3ECarob%20beverage%20mix%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20serving%20contains%20about%20300%20calories%0D%3Cbr%3E%3Cstrong%3EQamar%20Al%20Din%20apricot%20drink%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20saving%20contains%2061%20calories%0D%3Cbr%3E%3Cstrong%3EVimto%20fruit%20squash%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20serving%20contains%2030%20calories%3C%2Fp%3E%0A
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20synchronous%20electric%20motors%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E660hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E1%2C100Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20automatic%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E488km-560km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh850%2C000%20(estimate)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3EOctober%3C%2Fp%3E%0A
MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)