Social-Media
Exclusive: TikTok to challenge U.S. order prohibiting transactions with video apps
As early as Monday, TikTok is preparing to challenge President Donald Trump's executive order prohibiting transactions with the popular short video app and its Chinese parent ByteDance, according to people who are familiar with the matter.
Trump issued an executive order on August 14 that gave ByteDance 90 days to dissipate TikTok 's U.S. operations. ByteDance has made progress in discussions with potential acquirers, including Microsoft Corp and Oracle. Some U.S. ByteDance investors could also join the winning bid.
TikTok's legal challenge concerns an earlier executive order issued by Trump on 6 August, sources said.
That order directed the Secretary of Commerce to draw up a list of transactions involving ByteDance and its holdings that should be prohibited within 45 days.
TikTok plans to argue that, according to the sources, the Aug. 6 Executive Order 's dependence on the International Emergency Economic Powers Act deprives it of due process. TikTok will also contest its classification as a national security threat by the White House, sources added.
The court that TikTok plans to use to file its lawsuit was not immediately clear. The company had previously stated that it was exploring its legal options, and its employees were also preparing their own lawsuits.
While TikTok is best known for its anodyne videos of teenagers dancing and going viral, U.S. officials have expressed concern that information about users might be passed on to the Chinese Communist government.
Sources requested anonymity before the lawsuit was filed. ByteDance refused to comment. The White House spokesperson refused to comment.
TikTok's legal challenge would not prevent ByteDance from having to discard the app. This is because it does not fall within the scope of the order of August 14 on the sale of TikTok, which is not subject to judicial review.
However, the move shows that ByteDance is seeking to deploy all the legal ammunition at its disposal in an attempt to prevent the negotiations on the TikTok deal from turning into a sale of fire.
The Trump administration has stepped up its efforts to purge what it considers to be "untrusted" Chinese apps from U.S. digital networks. Beyond TikTok, Trump also issued an order prohibiting transactions with Tencent Holding Ltd's WeChat company.
Trump said that he would support an effort by Microsoft to purchase TikTok 's American operations if the U.S. government had a "substantial portion" of the proceeds, but he also said that there were other potential buyers interested, such as Oracle.
