A federal court has dismissed a lawsuit concerning a 2023 Montana Senate Bill aimed at banning TikTok. The resolution follows a deal involving the Trump Administration, the Chinese government, and TikTok, which resulted in the sale of TikTok’s American operations to a consortium including Oracle and Silver Lake. ByteDance retains a 19.9% stake, and its CEO remains on the American company’s board.
Concerns about ByteDance’s ties to Beijing and data collection on Americans prompted the lawsuit. Montana Attorney General Austin Knudsen criticized TikTok, leading to a ban on the app for state devices. Despite TikTok’s assurance that American data isn’t stored in China, the state legislature passed the law in 2023, which faced immediate challenges.
Some Montana business owners expressed frustration, citing harm to marketing efforts. The lawsuit also raised free speech concerns. A stipulation in the bill stated the sale of TikTok would void the legislation. Court documents noted, “All parties agree that SB 419 is void because Section 4 has been triggered as a result of the transaction described in President (Donald) Trump’s Executive Order 14352, ‘Saving TikTok While Protecting National Security.'”
Knudsen stated that the deal protects Montanans from foreign spying, emphasizing that the dismissal saves taxpayer money. However, more social media legislation could be forthcoming. Rep. Amy Regier, a Republican from Kalispell, led previous social media regulation efforts, like House Bill 408, which proposed electronic device filters but stalled in the Senate judiciary committee. Similar measures are anticipated in 2027.
Governor Greg Gianforte has emphasized the need to protect children from social media, citing concerns over increased suicide, depression, and addiction among minors. Speaking at a GOP kickoff event and the Mountain States Policy Center event, Gianforte underscored efforts to provide minors with social media safeguards.
