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Senators Request Biden to Grant ByteDance 90-Day Extension on TikTok Sale Deadline

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Democratic Senator Ed Markey and Republican Senator Rand Paul have called on President Joe Biden to extend by 90 days a looming January 19 deadline that requires China-based ByteDance to sell the U.S. assets of its popular short-video app TikTok or face a nationwide ban.

Their request comes as the Supreme Court prepares to hear ByteDance and TikTok’s legal challenge against the law mandating the sale. Arguments in the case are scheduled for January 10. In a joint letter to Biden, the senators argued that the law’s uncertain future and its implications for free expression warrant the 90-day reprieve.

Background on the Controversy

The contentious legislation was passed by Congress in April and signed into law by Biden. It stems from national security concerns raised by the Justice Department, which has argued that TikTok’s access to vast amounts of user data—including locations and private messages—makes it a significant threat. The department also raised concerns about ByteDance’s potential to manipulate content visible to American users.

TikTok, however, has denied these allegations, maintaining that it does not pose an imminent threat to U.S. security. The company and its parent, ByteDance, argue that the law violates the First Amendment’s protections of free speech.

Political Reactions

The debate over TikTok has divided lawmakers. Senate Republican Leader Mitch McConnell, in a brief filed with the Supreme Court, urged the court to reject any delay in enforcing the law, likening TikTok to a “hardened criminal.” Similarly, other senators, such as Republican Josh Hawley and Democrat Richard Blumenthal, insist that ByteDance must comply with the legislation.

On the other hand, Markey and Paul’s appeal highlights concerns about free expression and the impact of a potential TikTok ban on its 170 million American users.

Trump’s Reversal on TikTok

In a surprising turn, Republican President-elect Donald Trump, who previously sought to ban TikTok during his first term in 2020, has shifted his stance. During this year’s presidential race, Trump expressed a newfound fondness for TikTok, stating that he has “a warm spot” for the app and would “take a look” at the matter if elected. Trump will assume office on January 20, just one day after the current TikTok sale deadline.

Next Steps

With the Supreme Court set to deliberate on the matter and the Biden administration under pressure to extend the deadline, the future of TikTok in the U.S. hangs in the balance. Neither the White House nor TikTok has commented on the senators’ request.

 

U.S. Supreme Court Rejects Uber and Lyft Appeal on California Driver Lawsuits

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The U.S. Supreme Court has denied an appeal by Uber and Lyft, refusing to block lawsuits brought by California against the ride-hailing giants. These lawsuits, initiated by the state’s attorney general and labor commissioner, claim the companies owe compensation to drivers misclassified as independent contractors rather than employees. The legal fight revolves around whether drivers, who had agreed to private arbitration for disputes, can still be represented in state lawsuits.

Uber and Lyft have argued that under federal law, states cannot pursue legal action on behalf of individuals who signed arbitration agreements. This principle affects not only millions of gig economy workers but also a wide range of consumers who accept similar terms of service for various products or services. However, a California appeals court ruled against this claim, and the state’s highest court refused to review the case further, prompting the companies to take the matter to the U.S. Supreme Court, which declined to hear the case.

The companies maintain that they are not employers of gig workers, arguing that these workers benefit from the flexibility of being independent contractors. Nonetheless, California, along with several other states, contends that this classification deprives drivers of basic employment protections like minimum wage, overtime, and reimbursements for work-related expenses.

Uber and Lyft have supported state ballot measures, such as California’s Proposition 22, which allows them to continue treating drivers as contractors while offering limited benefits. In 2020, this measure was overwhelmingly approved by voters, and in July 2023, California’s top court upheld it. Despite this, the companies continue to face legal battles over driver classification.

Similar lawsuits have emerged in other states, including Massachusetts, where Uber and Lyft agreed in June to pay $175 million and adopt a minimum hourly pay of $32.50 for drivers. Although the companies face multiple legal challenges from drivers nationwide seeking employee status, many of these cases have been directed to arbitration due to the widespread use of arbitration agreements.