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.
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Killing of Qassem Suleimani
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
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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.”
Buy farm-fresh food
The UAE is stepping up its game when it comes to platforms for local farms to show off and sell their produce.
In Dubai, visit Emirati Farmers Souq at The Pointe every Saturday from 8am to 2pm, which has produce from Al Ammar Farm, Omar Al Katri Farm, Hikarivege Vegetables, Rashed Farms and Al Khaleej Honey Trading, among others.
In Sharjah, the Aljada residential community will launch a new outdoor farmers’ market every Friday starting this weekend. Manbat will be held from 3pm to 8pm, and will host 30 farmers, local home-grown entrepreneurs and food stalls from the teams behind Badia Farms; Emirates Hydroponics Farms; Modern Organic Farm; Revolution Real; Astraea Farms; and Al Khaleej Food.
In Abu Dhabi, order farm produce from Food Crowd, an online grocery platform that supplies fresh and organic ingredients directly from farms such as Emirates Bio Farm, TFC, Armela Farms and mother company Al Dahra.
Fixtures
Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am
Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am
Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am
Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
TO A LAND UNKNOWN
Director: Mahdi Fleifel
Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa
Rating: 4.5/5
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IF YOU GO
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info
Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.