The short-form video app company, currently owned by Chinese internet giant ByteDance, confirmed that it plans to file a lawsuit challenging U.S. President Trump’s Aug. 6 executive order that would effectively ban TikTok unless it is sold to an American buyer. TikTok expects to sue the administration this coming week.Trump’s actions against TikTok have come amid the U.S. government’s escalating trade tensions with China.
TikTok added, “To ensure that the rule of law prevails and that our company and users are treated fairly, we have no choice but to challenge the Executive Order through the judicial system.” TikTok has said it has never provided data on U.S. users to China’s government and would refuse to if asked. In a separate executive order issued Aug. 14, Trump set a 90-day deadline for Beijing-based ByteDance to divest TikTok’s U.S. assets. That order, also rooted in claims of protecting U.S. national security interests, officially forces the unwinding of ByteDance’s 2017 acquisition of Muiscal.ly, which ByteDance migrated to TikTok the following year.
It’s not clear how the legal fight with Trump might affect TikTok’s M&A talks. Earlier this month Microsoft confirmed it was in talks to buy TikTok. Other American buyers reportedly circling TikTok include Twitter and software giant Oracle, led by chairman Larry Ellison, who in the past has expressed his personal support of Trump.
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