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Tuesday, Aug. 11, 2020

Can the government block a foreign-owned mobile app from doing business in the US?

Esther Tsvayg, Gigafact
yes

The First Amendment likely prevents an outright ban on usage of a foreign-owned app, but the U.S. government can effectively block its distribution and otherwise limit its business operations.

President Trump applied one tool in Aug. 7 executive orders against TikTok and WeChat. The Emergency Economic Powers Act can be used to block transactions between U.S. entities and the apps' China-based owners, effectively thwarting their U.S. business efforts.

The orders take effect in 45 days, allowing time for negotiations already underway about TikTok's fate to continue. A Treasury committee review of TikTok's status in the U.S. had already prompted ByteDance Ltd., the app's owner, to explore a sale of its U.S. assets, possibly to Microsoft Corp. A similar Treasury review led to the sale of Grindr, a dating app for gay men, by its China-based owner.

This fact brief is responsive to conversations such as this one.

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