SALT LAKE CITY — A judge will decide how much information about TikTok's internal business operations will be made public, following a hearing where the state of Utah pushed for it to be released.
In a hearing on Thursday, TikTok attorneys urged 3rd District Court Judge Coral Sanchez to resist ordering the public disclosure of information about the social media giant contained in a redacted complaint filed by the state. They argued the information could disclose competitive secrets about the video app and internal company operations.
"Those allegations don’t just, you know, say nasty things about TikTok. The complaint says nasty things about TikTok throughout. So this is not simply a reputational harm argument," said Blaine Evanson, an attorney for TikTok. "It’s within those allegations there are many statements from internal, confidential discussions at TikTok related to things about the platform, how the platform operates and, in particular, what TikTok individuals were discussing in response to some of the claims the state was asserting here."
The hearing on Thursday centered around Utah's latest lawsuit against TikTok. The Utah Division of Consumer Protection alleges the company's livestreaming and virtual currency system could lead to the sexual exploitation of youth.
"The Division’s investigation uncovered that, consistent with public reporting about these harms, TikTok also knew of the dangers of combining these features and knew it was profiting off of significant number of virtual money transactions on its platform — including money transactions for sexual activity," said Jimmy Rock, an attorney representing the Utah Division of Consumer Protection. "Since the Division brought this case, a number of states have brought several actions, including several earlier this week."
Earlier this week, more than a dozen states filed lawsuits making similar claims to another Utah lawsuit against TikTok — that it has crafted an addictive algorithm that harms the mental health of youth. In court, Rock likened it to "digital nicotine." Utah has gotten increasingly aggressive against social media companies, leveling lawsuits against some of the biggest companies over alleged harms to youth.
But Evanson argued to Judge Sanchez that information about TikTok's own handling of the allegations should not be made public in court filings.
"These are internal, confidential discussions that if made public? Would show a bad actor who wants to misuse the platform how to do that or what some of the vulnerabilities are," he told her. "These are not simply allegations that cast a bad light on TikTok. They’re harmful to the very people the state is trying to protect."
With FOX 13 News in the courtroom, lawyers appeared to dance around specifics of what they're arguing over. Judge Sanchez warned at the onset of the hearing that while she approved a TV camera being in the courtroom — if the conversation veered into areas that are too sensitive — she would close the hearing. It appears the state is also seeking data about Utah TikTok users, content creators and how much money the social media company generates in Utah.
Judge Sanchez listened patiently to the arguments and gave no signal in her questioning as to how she might rule.
"The current redactions will remain in place until I issue my ruling," she said.
Lawyers will return to court in December for a hearing on TikTok's motion to dismiss the state's lawsuit against it.
