Montana’s TikTok Ban Officially Ends Following Lawsuit Dismissal
HELENA, Mont. — Montana’s legal battle over its ban on TikTok has concluded with the dismissal of a federal lawsuit challenging the law. The decision comes after TikTok announced a novel U.S.-based entity, “TikTok USDS Joint Venture,” would take over management of the app, effectively addressing the concerns that led to the ban’s initial passage.
Background of the Ban
In 2023, the Montana Legislature passed Senate Bill 419, making it the first state in the nation to attempt a complete ban on TikTok. Governor Greg Gianforte signed the bill into law, citing concerns that the app could expose user data to the Chinese government NBC Montana. However, the ban was immediately challenged by a group of Montana-based content creators who argued it violated their First Amendment rights.
A federal judge subsequently blocked the legislation before it could take effect, finding that it likely violated the First Amendment and overstepped state power NPR.
Federal Legislation and TikTok’s Response
In 2024, Congress passed a law requiring TikTok to be sold to a company outside of China or face a nationwide ban. While slated to go into effect last year, the Trump administration opted not to enforce the law while seeking a resolution regarding new ownership KTVH.
Dismissal of the Lawsuit
On Friday, February 20, 2026, both sides agreed to a joint stipulation of dismissal in the U.S. District Court for the District of Montana, effectively ending the nearly three-year legal dispute. The dismissal is based on the fact that TikTok is now managed by a new U.S.-based entity.
The new “TikTok USDS Joint Venture” includes Oracle, Silver Lake, and MGX as owners, with ByteDance, TikTok’s China-based parent company, retaining a minority share KTVH.
Montana’s SB 419 included a provision stating the ban would be void if TikTok were acquired by a company not incorporated in China or designated as a “foreign adversary” by the federal government. The stipulation of dismissal confirms that SB 419 is now void due to this transfer of management.
Attorney General’s Statement
Montana Attorney General Austin Knudsen stated that the Chinese Communist Party had used TikTok to spy on Montanans. He also acknowledged the work of President Trump in facilitating the acquisition of TikTok by an American company, ensuring the protection of Americans’ privacy NBC Montana. Knudsen affirmed his commitment to protecting the safety and security of Montanans as Attorney General.
Looking Ahead
The dismissal of the lawsuit marks the end of Montana’s attempt to ban TikTok within its borders. This outcome reflects the broader national conversation surrounding data security and the influence of foreign entities on social media platforms. The new ownership structure of TikTok is expected to address previous concerns regarding data privacy and national security.