The US Supreme Court has agreed to review ByteDance's challenge to a law that would ban TikTok in America from January 19.
“The case is set for oral argument on Friday, January 10, 2025,” read the filing, which noted that the justices will hear a two-hour oral argument.
“The parties are directed to brief and argue the following question: whether the Protecting Americans from Foreign Adversary Controlled Applications Act, as applied to petitioners, violates the First Amendment.”
The Supreme Court agreeing to hear TikTok's case is the first victory, albeit small, that the incredibly successful social media platform has scored as it seeks to challenge accusations of US user data being compromised by China-based parent company, ByteDance.
ByteDance has repeatedly denied that user data is compromised, but several months ago, in a bipartisan vote, the US Congress passed a law that demanded ByteDance divest from TikTok or be banned in the US by January 19. The law was signed by US President Joe Biden.
During his first term in the White House, president-elect Donald Trump voiced concern about potential data risks surrounding TikTok but, during his 2024 run for president, he joined the platform and quickly gained millions of followers.
Earlier in the week, Mr Trump said he had a “soft spot” for TikTok, but did not say whether he might potentially save the platform from the ban.
He could try to convince Congress to repeal the law, but that would be a long shot, as the legislation had bipartisan support.
Mark MacCarthy, a senior fellow at the Institute for Technology Law and Policy at Georgetown Law in Washington, pointed out that the Supreme Court essentially deferred action on injunctive relief, pending the forthcoming oral argument.
"This doesn’t prejudge the decision," he said.
"If, after the argument, the court feels it is likely to reject the law in whole or in part, it would grant the injunction then."
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 said, before explaining 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.
David Greene, civil liberties director and senior staff attorney for the Electronic Frontier Foundation, a nonprofit group promoting civil liberties in the tech world, said that EFF was pleased that the Supreme Court decided to hear TikTok's argument, adding that the DC Circuit Court which upheld the ban legislation failed to factor in First Amendment arguments, and instead relied on unproven national security fears.
"The TikTok ban itself and the DC Circuit's approval of it should be of great concern even to those who find TikTok undesirable or scary," he said, in part.
"Shutting down communications platforms or forcing their reorganization based on concerns of foreign propaganda and anti-national manipulation is an eminently anti-democratic tactic, one that the US has previously condemned globally."
TikTok issued a brief statement several hours after the Supreme Court announced it would hear the company's challenge to the law.
"We're pleased with today's Supreme Court order," the statement read, in part.
"We believe the Court will find the TikTok ban unconstitutional so the over 170 million Americans on our platform can continue to exercise their free speech rights."
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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.”
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