Home bytedance TikTok and ByteDance File Lawsuit Against President Biden’s Divestment Law

TikTok and ByteDance File Lawsuit Against President Biden’s Divestment Law

TikTok and its parent company ByteDance have taken legal action against President Joe Biden’s law that requires the divestment or prohibition of the popular short video app. The companies argue that the law violates the First Amendment’s free speech protections. They filed a lawsuit in the United States Court of Appeals for the District of Columbia Circuit, claiming that the law would result in a permanent ban on TikTok, silencing the 170 million Americans who use the platform for communication.

The White House has expressed concerns about Chinese ownership of TikTok for national security reasons, rather than seeking a complete ban. However, competitors like Snap and Meta are looking to capitalize on TikTok’s political uncertainties and attract advertising dollars away from the platform. The bill was passed by Congress due to fears that China could use TikTok to gather data on Americans or engage in espionage. TikTok has repeatedly denied sharing U.S. user data and accused American politicians of raising speculative fears.

The law prevents app stores like Apple and Google from providing TikTok and hosting providers from supporting it unless ByteDance divests by January 19. The Chinese government has made it clear that it will not allow the divestment of the recommendation engine critical to TikTok’s success in the United States.

The lawsuit argues that U.S. Attorney General Merrick Garland should be prevented from enforcing the law and calls for prospective injunctive relief. It reveals that global institutional investors hold a majority stake in ByteDance, while its Chinese founder and employees own the rest. The battle over TikTok represents a significant conflict between the United States and China over internet and technology.

TikTok has made substantial efforts to secure U.S. users’ data, spending $2 billion on security measures and agreeing to a shutdown option if it violates specified requirements. However, conversations with the Committee on Foreign Investment in the United States (CFIUS) regarding divestment were discontinued, leading to the current legal dispute.

The lawsuit also mentions the Biden campaign’s use of TikTok, which undermines the claim that the platform poses a threat to Americans. It questions whether any potential buyer has the financial capacity to acquire TikTok and whether both Chinese and U.S. authorities would approve a sale. Additionally, moving the TikTok source code to the United States would require extensive time and expertise.

Overall, the lawsuit highlights the tensions surrounding TikTok and the ongoing conflicts between the United States and China in the realm of technology and national security. It raises important questions about free speech, foreign ownership, and the future of the popular app.

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