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TikTok Plans to Take Trump Administration to Court for Banning U.S. Transactions

TikTok is all prepared to challenge the executive order by the Trump administration which plans to ban its U.S. transactions. On Saturday, TikTok said that it will file a lawsuit against President Donald Trump‘s Executive order for banning the popular video-sharing app.

As per Reuters, this lawsuit filing can come as soon as Monday. TikTok claims that it tried to have a good dialogue and engagement with the U.S. government for a year. It cites “a lack of due process” as the reason behind its lawsuit and also added that the government didn’t pay attention to facts.

Earlier this month on August 6, the executive order noted that any transactions with ByteDance subject to U.S. jurisdictions will be prohibited within 45 days. In another separate order on August 14, the Trump administration has given ByteDance 90 days to divest its U.S. operations. Speaking to CNBC, a TikTok spokesperson said:

“Even though we strongly disagree with the Administration’s concerns, for nearly a year we have sought to engage in good faith to provide a constructive solution. 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.”

The spokesperson further 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”.

Big tech giants in the U.S. are in a race to acquire the U.S. operations for TikTok. Reportedly, President Trump had been in a discussion with Microsoft CEO Satya Nadella over TikTok acquisition. The president also urged Microsoft if they could go ahead with a complete purchase.

The current valuations of TikTok stand at a whopping $50 billion. If Microsoft proceeds with a complete purchase deal, it would be the biggest acquisition by the tech giant. Along with Microsoft Corporation (NASDAQ: MSFT), computing software giant Oracle Corporation (NYSE: ORCL) is also in the race. TikTok’s massive consumer data is the biggest attraction for the tech giants.

However, it is also the reason behind the conflict as there are reports of TikTok passing on information to the Chinese communist government. Besides, the data war between the two biggest economies has already escalated further. The Trump administration has already initiated efforts to remove Chinese apps from the U.S. online networks. The government has done so citing concerns of national security for the United States.

In the U.S. alone, TikTok has grown to over 100 million monthly users. The app has over 800 million active users worldwide. Apart from the U.S, TikTok is also facing a ban in India, its largest potential market. The Indian government has banned over 50 Chinese apps over national security threats after its border row with China.

TikTok Plans to Take Trump Administration to Court for Banning U.S. Transactions

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