TikTok sued the administration of President Donald Trump for banning transactions with the ByteDance parent company. TikTok wrote in a press release that the [Trump] management has ignored our extensive efforts to address its issues, which we have done completely and with good faith. We are doing nothing less than to sue the government, but feel that we have no choice but to take action to defend our rights and the rights of our community and staff.
The lawsuit alleges that Trump's order infringes proper procedural protection, goes beyond the rules on sanctions and does not provide evidence that TikTok presents a national security threat.
It also argues that Trump ignored the cooperation between TikTok and the United States Committee on Foreign Investment (CFIUS), which reviews fusions such as the acquisition by ByteDance of the Musical.ly app, which later became TikTok in the United States.
The complaint reads that in-dependent national security and information security experts have criticized the executive's political nature and expressed doubts whether its stated national security objective is true, The Executive Order is no longer based on truthful national security concerns.
TikTok refers to some complex and extraordinary legal concerns. It points out that personal and informative materials — possibly including applications — are typical sanctions exempt. And it argues that the app code for TikTok is an expression of the First Amendment.
While Microsoft had expressed interest in purchasing TikTok before the order and engaged in discussions with ByteDance, the sales pressures for Trump increased. He also suggested, as TikTok notes, that any deal should make a lot of money for the Treasury department.
Over the weekend TikTok confirmed it would sue, citing in the prohibition a lack of due process. On August 6, Trump approved ByteDance under the emergency powers of National Security, escalating conflict over months. WeChat, a Chat app by Chinese giant Tencent, was also banned. A WeChat group of users has also sued Trump for this order.
The White House did not fully explain its prohibition. It currently bans all ByteDance transactions, but does not specify the implications of a transaction.