Just weeks after stating that it was exploring its legal options to fight the US’s new law that would force the sale of TikTok, ByteDance has finally sued the Biden-led administration, arguing that the law is illegal as it goes against the US Constitution and the right to free speech
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TikTok and its parent company ByteDance are challenging a recently signed law by President Biden. The law requires TikTok to sell a portion of its business in the US or risk being banned, which would impact around 170 million users.
They have taken their fight to a federal court in the District of Columbia, claiming that the law violates the US Constitution. They are particularly concerned that it could infringe upon the free speech rights guaranteed by the First Amendment. President Biden signed the law on April 24th, giving ByteDance until January 19th to sell TikTok.
TikTok has shared a copy of the lawsuit with Reuters, marking a significant development in the ongoing dispute between the social media platform and US regulators.
TikTok argues that complying with the new law is nearly impossible, both financially and legally. They warn that if the law is enforced, TikTok may have to cease operations by January 19, 2025, leaving 170 million American users without their favored communication platform.
Congress swiftly passed the law due to concerns about China potentially accessing American data or conducting espionage through TikTok. The law prohibits app stores from offering TikTok and internet hosting services from supporting it unless ByteDance sells part of TikTok by the deadline.
The lawsuit also mentions the pressure ByteDance is under from the Chinese government, which opposes the sale of TikTok’s crucial recommendation engine in the US.
TikTok has invested $2 billion to safeguard American users’ data. They have been in discussions with the Committee on Foreign Investment in the United States (CFIUS) and have a draft agreement that allows the US government to shut down TikTok if it breaches certain rules.
This lawsuit underscores the complexity and gravity of the situation, raising questions about national security. As the legal process unfolds, many are left pondering TikTok’s future in the US and its impact on millions of users and social media regulations.
The lawsuit also outlines a timeline of talks between ByteDance and CFIUS. These discussions ceased abruptly in August 2022, leaving ByteDance in a precarious position. By March 2023, CFIUS demanded that ByteDance divest its TikTok operations within the US, emphasizing the seriousness of national security and data privacy concerns.
CFIUS, overseen by the US Treasury Department, plays a vital role in safeguarding American interests by reviewing foreign investments in US businesses and real estate. Their insistence on divestment highlights the magnitude of the TikTok situation.
The legal battle over TikTok’s future is further complicated by President Biden’s authority. He has the power to extend the January 19 deadline by three months, giving him considerable influence over the outcome, which may hinge on ByteDance’s progress in addressing security concerns.
This legal dispute echoes former President Trump’s efforts to ban TikTok and WeChat in 2020, which were blocked by the courts. Trump’s recent shift towards focusing on security issues without resorting to bans adds another layer of complexity.
Questions arise about finding a buyer for TikTok’s US operations amid financial and regulatory obstacles. Uncertainties persist regarding approval from Chinese authorities and US government agencies, highlighting the challenges TikTok faces in navigating international business and diplomacy.
The lawsuit also mentions the complexity of relocating TikTok’s source code to the US, a process that would demand significant time and resources.
The four-year legal battle over TikTok symbolizes a significant battleground in the broader US-China conflict concerning the internet and technology. Recent events, such as China’s directive to remove WhatsApp and Threads from Apple’s App Store, underscore the tensions and complexities in this arena.
