TikTok announces that it will take to court the United States law that forces it to sell the social network
TikTok made an announcement on Wednesday stating that it will take legal action against the US Congress’s law which requires ByteDance, a Chinese technology conglomerate, to sell the operations of the social network or face a ban. The social network believes the law is unconstitutional and plans to challenge it in court, confident that they will ultimately prevail.
TikTok has emphasized that it has invested significant funds to ensure the safety of American user data and that the platform remains free from external influences and manipulations. They have also warned that a potential ban would have devastating consequences for seven million US companies and silence the 170 million Americans who use the social network.
While TikTok challenges the unconstitutional ban, the company has affirmed its commitment to invest and innovate to ensure the platform remains a safe space for Americans to share their experiences, find joy, and be inspired.
270 days to find an investor
Under the newly passed law, ByteDance has 270 days to find an investor from a country that is not considered a “foreign adversary” to sell the company to. During the previous administration, the White House attempted to force the sale of TikTok’s US operations but faced legal challenges highlighting concerns about national security.
Previously, Microsoft had shown interest in acquiring TikTok, and this year, former Trump Treasury Secretary Steve Mnuchin expressed that he has a group of investors ready to make a bid for the social network. The law allows the president to extend this period by an additional 90 days, meaning TikTok should ideally have passed into the hands of a friendly entity within a year.
Both Republican and Democratic members of Congress, as well as Biden administration officials, have raised concerns about the potential for China to obtain user information from ByteDance and manipulate content on the TikTok platform. However, TikTok and ByteDance have stated their lack of intention to sell the company and highlight that the platform contributes significantly to the US economy, with 60% of its shares held by global institutions.