It says that Trump’s executive order didn’t allow ByteDance due process.
TikTok confirms that it will sue the Trump administration over the executive order that bans the video-sharing app’s US transactions.
President Trump issued an executive order on August 6 stating that transactions with TikTok’s parent company, ByteDance, will be prohibited in 45 days. The extent of the ban isn’t clear yet.
In a separate order released on August 14, ByteDance was given 90 days to divest its US operations. The company is already in talks with possible acquirers, like Oracle and Microsoft.
The lawsuit that ByteDance will file against the executive order issued on August 6 will not affect the acquisition discussions with possible buyers.
Reports started surfacing on Friday that TikTok would likely file a lawsuit. And it’s the first time that ByteDance confirmed that it would indeed file a legal action against the Trump administration.
According to TikTok, the company disagreed with the concerns of the current administration. For nearly a year the company sought to provide a constructive solution. However, the company encountered a lack of due process as the Trump administration didn’t look at the facts. The administration also tried to inject itself into the deal among private businesses.
ByteDance also added that it only wants to challenge the Executive Order because it wants its users and its company to be treated fairly.
US Companies Expressed Interest in Buying TikTok
Several companies have reportedly expressed their interest in acquiring TikTok from ByteDance, including Microsoft and Oracle. Microsoft’s co-founder Bill Gates considered the potential deal as a poisoned chalice. The company, however, is expected to complete the deal not later than September 15, 2020.
There were also reports that Twitter was in talks with ByteDance.
Over the past year, the video-sharing app, TikTok, increased in popularity. Before ByteDance purchased it in 2017, TikTok used to be known as musical.ly.
Some lawmakers and President Trump expressed their concerns that TikTok allows the Chinese government to utilize the app to spy on Americans. For them, the use of the app poses a risk to US national security.
But ByteDance has denied it repeatedly.
The company will file a suit sometime next week to challenge the August 6 order. The company argues that the use of the International Emergency Economic Powers Act didn’t allow the company due process. It also challenges Trump’s classification of TikTok as a threat to national security.
The possibility of a TikTok ban was mentioned by the Secretary of State Mike Pompeo on July 7. He compared the video-sharing app to Huawei and ZTE. They are two Chinese companies that the administration has also classified as threats to US national security.
On August 2, Microsoft CEO Satya Nadella wrote a blog post stating that “Microsoft appreciates the U.S. Government’s and President Trump’s personal involvement as it continues to develop strong security protections for the country.”
Tiktok wants to ensure that its employees will still get paid even if it will be banned in the US.