Published: August 23, 2020 10:17:58 am
TikTok plans to file a lawsuit against the Trump administration to challenge its executive order banning transactions with the video app in the U.S., the company said Saturday.
TikTok said it “strongly disagreed” with the concerns raised by President Donald Trump as he ordered on Aug. 6 to ban the app from the U.S. within 45 days. He subsequently gave it a 90-day deadline to divest its U.S. operations.
“What we encountered instead was a lack of due process as the Administration paid no attention to facts and tried to insert itself into negotiations between private businesses,” a TikTok spokesperson said in a statement. “To ensure that the rule of law is not discarded and that our company and users are treated fairly, we have no choice but to challenge the Executive Order through the judicial system.”
TikTok didn’t say which court it plans to use. The company added that it tried to work out a solution to address the U.S. concerns for almost a year.
Trump made the order under a 1977 law that lets the US president declare a national emergency in response to an “unusual and extraordinary threat,” allowing him to block transactions and seize assets.
TikTok, owned by China-based ByteDance Ltd., has been fielding interest in its operations in the U.S. and a handful of other countries. Microsoft Corp. has publicly confirmed its interest to buy TikTok’s business in the U.S., Canada, Australia and New Zealand. Other companies, including Oracle Corp. and Twitter Inc., have also emerged as potential bidders.
Reuters previously reported on TikTok’s plan to file the lawsuit as soon as Monday.
Separately, an employee lawsuit against the proposed U.S. ban, independent from the company’s official legal response, is being funded under crowdfunding campaign.
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