TikTok’s efforts to overturn a law that could force its ban or sale in the United States by early 2025 have hit a major roadblock, with a federal appeals court rejecting its argument that the legislation violates free speech rights.

The controversial law, supported by bipartisan efforts in Congress and successive administrations, stems from concerns about TikTok’s alleged ties to the Chinese government. Both TikTok and its parent company, ByteDance, have consistently denied these accusations.

The appeals court upheld the legislation, stating it was designed to address “a well-substantiated national security threat posed by the PRC (People’s Republic of China)” and targeted foreign adversary influence.

TikTok, however, remains steadfast in its defense, announcing plans to escalate the case to the US Supreme Court.

“The Supreme Court has an established historical record of protecting Americans’ right to free speech, and we expect they will do just that on this important constitutional issue,” a TikTok spokesperson said in a statement.

The company also criticized the law, calling it based on “inaccurate, flawed, and hypothetical information” and emphasizing that a ban would amount to censorship of its 170 million US users.

The political landscape surrounding TikTok’s future could shift with Donald Trump’s return to the presidency. During his 2024 campaign, Trump indicated that, unlike his earlier efforts to ban the app, he would not enforce the impending legislation.

Microsoft is at the center of a £1 billion class action lawsuit in the UK, with thousands of businesses potentially in line for compensation. The claim, led by regulation expert Dr. Maria Luisa Stasi, alleges that Microsoft overcharged companies for its Windows Server software, a key tool in cloud computing operations.

• The lawsuit accuses Microsoft of unfair pricing practices, claiming the company leveraged its dominant position to inflate costs for businesses.
• Over £1 billion in damages is being sought on behalf of UK businesses.
• The case is filed on an opt-out basis, meaning all UK businesses using Microsoft’s software are automatically included unless they choose otherwise.

This lawsuit is the latest in a wave of class action cases targeting tech giants in the UK, including Facebook and Google. Such claims, enabled by legislation introduced in 2015, are still relatively novel, and outcomes remain uncertain.

The legal process is expected to take years to resolve, with little precedence available to predict success rates.

The case coincides with an ongoing investigation by the UK’s Competition and Markets Authority (CMA) into the cloud computing sector.

• Cloud services are integral to modern businesses, providing solutions for data storage, software licensing, and streaming services. Microsoft’s Azure, Amazon Web Services, and Google Cloud dominate the sector.
• Google previously raised concerns with the CMA, accusing Microsoft of using restrictive licensing practices that increase costs for competitors and undermine their ability to compete effectively.
• The company has denied these allegations, stating that its licensing terms do not significantly impact rivals’ costs or competitiveness.

If successful, the lawsuit could mark a landmark decision for tech regulation in the UK, reinforcing scrutiny on the practices of dominant players in critical digital infrastructure markets. Businesses across the nation stand to benefit from compensation, with the case also potentially influencing licensing and competition policies in the cloud computing industry.

SoftBank has made a $1.5 billion investment in OpenAI, enabling the AI powerhouse’s employees to sell shares in a new tender offer, according to sources familiar with the matter. The tender offer, which has not been previously reported, gives employees until December 24 to decide on participation.

The deal was initiated by SoftBank’s billionaire CEO Masayoshi Son, who reportedly pushed for a larger stake in OpenAI after investing $500 million in its last funding round. This move highlights Son’s growing focus on artificial intelligence and his intent to back leading private companies in the sector.

SoftBank’s Vision Fund 2 has been actively investing in AI startups, including Glean, Perplexity, and Poolside. Across its two Vision Funds, the company manages approximately 470 portfolio companies with assets totaling $160 billion.

Even without SoftBank’s substantial financial backing, OpenAI has demonstrated remarkable fundraising capabilities. Its valuation has surged to $157 billion in the two years since the release of ChatGPT. The company has raised around $13 billion from Microsoft, closed a $6.6 billion funding round in October (led by Thrive Capital, with participation from Nvidia and others), and secured a $4 billion revolving credit line, bringing its total liquidity to over $10 billion.

Despite these significant inflows, OpenAI anticipates operating losses of $5 billion on projected revenue of $3.7 billion for 2024, reflecting the immense costs associated with advancing AI technologies.

Masayoshi Son, who has previously invested in major tech companies like Apple, Qualcomm, and Alibaba, recently expressed his intent to reserve “tens of billions of dollars” for AI investments.