TikTok and ByteDance Sue U.S. Government Over Divestiture Law
In a bold move to protect their interests, TikTok and its Chinese parent company ByteDance have filed a lawsuit in U.S. federal court seeking to block a law signed by President Joe Biden that would force the divestiture of the popular short video app or potentially ban it altogether. The law, signed by Biden on April 24, gives ByteDance until Jan. 19 to sell TikTok or face a ban, a move that the companies argue violates the U.S. Constitution on several grounds, including infringing on First Amendment free speech protections.
The lawsuit, filed in the U.S. Court of Appeals for the District of Columbia Circuit, claims that the divestiture mandated by the law is not feasible commercially, technologically, or legally, and would ultimately result in the shutdown of TikTok by January 19, 2025, silencing the 170 million Americans who use the platform for communication that cannot be replicated elsewhere.
The White House has expressed concerns about Chinese-based ownership of TikTok on national security grounds but has not advocated for an outright ban. The lawsuit is the latest in a series of efforts by TikTok to fend off attempts to shut it down in the United States, as rival companies like Snap and Meta seek to capitalize on TikTok’s political uncertainty to attract advertising dollars.
The law, passed overwhelmingly in Congress, aims to address concerns among U.S. lawmakers that China could access data on Americans or spy on them through the app. TikTok has vehemently denied these allegations, accusing American lawmakers of promoting “speculative” fears. Representative Raja Krishnamoorthi, a top Democrat on a House committee on China, has defended the legislation as necessary to address the national security threat posed by ByteDance’s ownership of TikTok.
The lawsuit also highlights the challenges of divesting TikTok, as the Chinese government has indicated that it would not permit the sale of the recommendation engine that is crucial to TikTok’s success in the United States. The companies have asked the D.C. Circuit to block U.S. Attorney General Merrick Garland from enforcing the law and are seeking “prospective injunctive relief.”
The ongoing battle over TikTok reflects broader tensions between the United States and China in the realm of internet and technology. TikTok has made significant investments to protect the data of U.S. users and has engaged in negotiations with the Committee on Foreign Investment in the United States (CFIUS) to address national security concerns. However, discussions with CFIUS have stalled, with the committee now insisting on ByteDance divesting the U.S. TikTok business.
Former President Donald Trump’s efforts to ban TikTok and WeChat in the United States were blocked by the courts in 2020. Trump has since softened his stance on a ban but emphasized the need to address security concerns. President Biden has the option to extend the Jan. 19 deadline if he determines that ByteDance is making progress. The lawsuit points out that Biden’s presidential campaign continues to use TikTok, undermining claims that the platform poses a real threat to Americans.
The future of TikTok remains uncertain, as questions linger about potential buyers’ financial resources and the approval process from both Chinese and U.S. government agencies. Moving the TikTok source code to the United States, as mandated by the law, presents significant challenges that could take years to overcome. As the legal battle unfolds, the fate of TikTok and its millions of American users hangs in the balance.