TikTok faces a potential nationwide ban in the US. Reuters
TikTok faces a potential nationwide ban in the US. Reuters
TikTok faces a potential nationwide ban in the US. Reuters
TikTok faces a potential nationwide ban in the US. Reuters

TikTok users sue to stop app ban in Montana


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Five TikTok users are calling on a federal court to overturn Montana's ban on the video-sharing app, arguing that it violates their right to freedom of speech.

The lawsuit was filed hours after Montana Governor Greg Gianforte signed the unprecedented ban into law on Wednesday.

Mr Gianforte said on Twitter he endorsed the ban to “protect Montanans' personal and private data from the Chinese Communist Party”.

The state is trying to exercise national security power that only the federal government can wield and is violating free speech rights in the process, the suit argued.

“Montana can no more ban its residents from viewing or posting to TikTok than it could ban The Wall Street Journal because of who owns it or the ideas it publishes,” the lawsuit argued.

The app is owned by Chinese firm ByteDance and some US politicians have suggested it is under the tutelage of the Chinese government and is a tool of espionage for Beijing, which the company denies.

Plaintiffs named in the suit included a former US Marine Corps sergeant, a mother living with her family on a ranch, a businesswoman who sells swimwear and a student who posts video snippets about her outdoor adventures.

The TikTok creators have significant followings and make money from the platform, the lawsuit claims.

It calls for the court to stop Montana enforcing the ban and to pay the legal costs of the plaintiffs.

Montana became the first US state to ban TikTok, with the law set to take effect next year as debate escalates over the popular video app's impact on security.

The prohibition will serve as a legal test for a national ban of the Chinese-owned platform, for which politicians in Washington are increasingly calling.

The ban makes it an offence each time “a user accesses TikTok, is offered the ability to access TikTok, or is offered the ability to download TikTok”.

Each offence is punishable by a $10,000 fine every day it takes place.

Under the law, Apple and Google will have to remove TikTok from their app stores and companies will potentially face daily fines.

The ban will take effect in 2024, but be voided if TikTok is acquired by a company incorporated in a country not designated by the US as a foreign adversary, the law reads.

The legislation is the latest skirmish between TikTok and western governments, with the app already banned on government devices in the US, Canada and several countries in Europe.

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.”

JAPANESE GRAND PRIX INFO

Schedule (All times UAE)
First practice: Friday, 5-6.30am
Second practice: Friday, 9-10.30am
Third practice: Saturday, 7-8am
Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday 

Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
Watch live: beIN Sports HD

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Updated: May 19, 2023, 1:59 PM