Tech Giants TikTok and ByteDance Launch Legal Fight Against US Regulation of App Sale

TikTok and its Chinese parent company have filed a lawsuit in federal court challenging the bill signed by President Joe Biden. The law aims to compel the sale or restrict the operation of the short-form video app, which is used by 170 million Americans. Congress passed the bill with strong support shortly after its introduction, following worries among U.S. legislators about China potentially using the app to access or spy on American data.

TikTok has refuted allegations of sharing or planning to share user data in the U.S. and has criticised U.S. lawmakers for bringing forth a lawsuit based on “speculative” concerns.

The lawsuit argues that mandating a divestiture is not feasible from a commercial, ideological, or legal standpoint and that it would result in TikTok shutting down before January 19, 2025.

While the White House has expressed the desire to eliminate China’s ownership of TikTok due to national security concerns, it has clarified that the intention is not to impose a complete ban on the app. Both the White House and the Justice Department have refrained from commenting on the case.

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