alt Hacker NewsWhat if Congress passed a law that said "The New York Times must shut down unless all foreign owners divest"? That's effectively impossible for a publicly traded corporation. Is that just a ban, in practice?
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Except this isn't a law against any foreign owner, just specifically a foreign owner that is essentially the #1 geopolitical adversary of the US.
A large part of the US-China relationship is zero-sum. If America loses, china wins, and vice versa. That relationship is not the same for, say, the US-France relationship.
They absolutely could if the NYT was fully owned by a foreign entity, and that entity was a government that adversarial to the US.
The issue is not that a company has foreign shareholders -- it's the fact that is under the control of the CCP.
This was also an issue when Rupert Murdoch wanted to buy Fox; he was only able to do so once he became a US citizen, for the same reasons.
The 1A arguments by ByteDance was a diversionary tactic to shift the conversation away from the real issue (control) -- and judging by all the comments on HN by people who don't understand it's about control, I'd say they were pretty successful.
I think the equivalent would be if New York Times is somehow owned by Tencent and given that the Chinese government uses golden shares to control private companies. In that case, I think it's fair game to force NYT to divest or force them to shutdown.
What if Congress passed a law that said "The New York Times must shut down unless all foreign owners divest"?
This already exists in some ways. Foreign companies are not allowed to own American broadcasters. That's why Rupert Murdoch had to become a (dual?) American citizen when he wanted to own Fox television stations in the United States.
That's what the question of strict scrutiny vs. intermediate scrutiny vs. rational basis is about. The courts would have to decide the appropriate level of scrutiny given the legal context and then apply that to the law as written.
Your hypothetical clearly implicates the Times' speech, so intermediate scrutiny at least would be applied, requiring that the law serve an important governmental purpose. I think that would be a difficult argument for the government to make, especially if the law was selective about which kinds of media institutions could and could not have any foreign ownership in general. The TikTok law is much more specific.