The Week in Business: An Attempt to Ban TikTok
What is? (May 14-20)
Aimed at a social media juggernaut
Opposition to TikTok, the video app that has come under scrutiny largely because of its Chinese ownership, reached a new level on Wednesday, when Montana Gov. Greg Gianforte signed a bill banning the app in the state. The legislation seeks to shut down access by targeting mobile app stores, such as the Apple Store and Google Play, and banning them from offering TikTok in Montana. If the stores continue to allow people to download the app, the companies could face fines, just like TikTok. The ban goes into effect January 1, but it already faces a legal challenge. On Thursday, a group of TikTok users filed a lawsuit alleging that the law violated their First Amendment rights and that the ban was beyond Montana’s legal authority as a state.
A ‘Truly Sorry’ CEO
In his first public remarks since Silicon Valley Bank’s collapse, the bank’s former CEO Gregory Becker told lawmakers at a congressional hearing on Tuesday that he was “really sorry” for what happened. But even under pressure, he would not admit that his own actions contributed to the bank’s downfall. Instead, he blamed the news media for raising questions about the SVB’s financial disclosures, government officials for allowing inflation to rise to the point where rapid rate hikes were needed, and the bank’s board for not taking action. steps that some analysts say would have reduced the risk. Members of the Senate Banking Committee, which has held multiple hearings and is now investigating the factors that played a role in the banking crisis, were not convinced by Mr. Becker. “It sounds like ‘my dog ate my homework,'” said Sen. Sherrod Brown, an Ohio Democrat who chairs the committee.
Disney v. DeSantis, continued
The road to Florida Governor Ron DeSantis’s likely presidency is paved with culture clashes that he says will appeal to a large Republican base and propel him to the White House. The most prominent of these battles was with Disney, whose governor is widely seen in retaliation for the company’s opposition to anti-LGBTQ legislation that critics call “Don’t Say Gay.” On Thursday, Disney hit back: Disney CEO Robert A. Iger and Josh D’Amaro, chairman of Disney’s theme park and consumer products business, pulled the plug on an office complex it wanted to build in Orlando that would have employed more than 2,000 people. high-paying Disney jobs to the region. While Mr. DeSantis was not explicitly named in the memo announcing the decision, Mr. D’Amaro noted “changing business conditions.”
What’s next? (May 21-27)
A menacing X-Date
No one can say for sure when the United States will exhaust its cash reserves and default on its debts. According to Treasury Secretary Janet L. Yellen, it could be as early as June 1. Or if the Treasury can find enough money to pay its bills until June 15, when third-quarter payments are due from businesses and people who need or want to pay their tax bills on a quarterly basis, the government would have a bit of breathing room. But while it may be difficult to pinpoint the exact date, known as the X-date, policymakers in Washington know it’s getting closer. House Speaker Kevin McCarthy and President Biden were initially optimistic about reaching a deal soon to raise the debt ceiling. But the two sides remain far apart over discussions of spending cuts and policy proposals.