TikTok has filed a lawsuit against the federal government in an attempt to block a new law that would compel its China-based parent company to sell the popular video-sharing app within a year or face a ban in the US.
The lawsuit, filed in a federal appeals court in Washington DC, seeks to prevent the implementation of the bipartisan legislation signed by President Biden, known as the Protecting Americans From Foreign Adversary Controlled Applications Act.
TikTok argues that the law is unconstitutional and that divesting within the 12-month timeline is not feasible. The company claims the law will effectively shut down TikTok by January 19, 2025, silencing its 170 million American users. TikTok has requested the court to declare the law unconstitutional and provide appropriate relief.
A White House representative referred inquiries to the Justice Department, which declined to comment. The House Select Committee on China, which supported the bill, did not immediately respond to requests for comment.
The law mandates ByteDance, TikTok's parent company, to divest its stake in TikTok by January 19, 2025, or one day before President Biden's term ends, with an option for a three-month extension if sufficient progress is made. TikTok's legal filing is expected to pause this timeline and delay a potential ban by several years.
TikTok asserts that the Chinese government would not allow divestment of the recommendation engine crucial to TikTok's success in the US. The company also argues that relocating its source code to the US would be a lengthy process requiring new engineers to become familiar with the code.
The outcome of the lawsuit may hinge on the national security concerns that prompted the law's passage. Critics have accused TikTok of being a tool for the Chinese Communist Party, alleging election interference, pro-terrorist propaganda, and a teen mental health crisis. TikTok denies these claims and emphasizes its efforts to provide a safe platform.
Despite TikTok's lobbying efforts and economic contributions to the US, the law passed, prompting interest from potential buyers like Steven Mnuchin and Bobby Kotick. Mnuchin has proposed buying TikTok and rebuilding its algorithm within the US to bypass Chinese technology export laws.