In a bold move, TikTok has filed a lawsuit against the US government, marking the first legal challenge to a new law compelling its Chinese parent company, ByteDance Ltd., to divest from the popular video-sharing app or face a ban.
TikTok argues that the law poses a threat to free speech and could harm creators and small business owners who rely on the platform for economic opportunities. The company asserts that it has invested over $1.5 billion to establish a separate entity for its US operations and has agreed that Oracle Corp should oversee its activities.
“For the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban, and bars every American from participating in a unique online community with more than 1 billion people worldwide,” TikTok stated in its filing to the US Court of Appeals in the District of Columbia.
The legal battle follows President Joe Biden’s signing of a Ukraine-Israel aid package, which includes a TikTok provision. Shou Chew, Tik Tok’s Chief Executive (CEO) has made concerted lobbying efforts.
However, US lawmakers have maintained their concerns about potential national security risks associated with China accessing user data and disseminating propaganda to approximately 170 million Americans.
TikTok’s lawsuit outlines alleged violations by the US government that include infringements upon the First Amendment and the Fifth Amendment’s equal protection clause.
The company warns that the enactment of the law will lead to the shutdown of TikTok by January 19, 2025. However, the company fears that this will lead to silencing millions of Americans who use the platform for communication.
As the legal dispute unfolds, it emphasises the complex relationship between national security, free speech, and digital platform regulation. In a related development, the Italian Competition Authority fined TikTok €10 million for its failure to safeguard users from harmful online challenges.
Meanwhile, ByteDance denies rumours of selling a majority stake in TikTok’s US operations to entities like Walmart, amidst uncertainty surrounding the platform’s valuation.