Popular short-video sharing app TikTok's owner ByteDance said today in its official WeChat account that it will formally sue the Trump administration on August 24, US time (August 25, Beijing time).
The company said that it sought to communicate with the US government on the TikTok issue, but the latter did not follow due process of law and even tried to force its way into negotiations with commercial companies.
To ensure that the company and its users are treated fairly, it is formally defending its rights through litigation, the company said.
The following is a translated version of its short statement in full.
For nearly a year, we have sought in good faith to communicate with the United States Government to provide solutions to the concerns they have raised.
However, the US government has ignored the facts, failed to follow due process, and even attempted to forcibly intervene in negotiations with commercial companies.
To ensure that the rule of law is not abandoned and that companies and users are treated fairly, we are announcing a formal lawsuit to defend our rights. We are announcing a formal lawsuit to defend our rights. The lawsuit will be filed on August 24, US time (August 25, Beijing time).
Microsoft reportedly considering acquiring TikTok's UK business
Also according to CNBC, TikTok is also preparing for the worst to ensure that its employees continue to be paid even if the app is shut down in the US. This means that ByteDance is actively preparing a "shutdown plan" while suing the US government.
TikTok has more than 100 million users, more than 1,500 employees, and thousands of partners in the US. TikTok's US business had been rumored to be worth $20 billion to $50 billion.
According to a presidential executive order issued by Trump on August 6, any dealings between any person or business subject to US jurisdiction and TikTok's parent company will be banned after 45 days. The full scope of the ban is unclear, and the US Secretary of Commerce will have the authority to determine the scope of the transaction.
The transaction ban could result in ByteDance being unable to pay US employees after September 15. As part of the shutdown prep, ByteDance is said to be actively reaching out to overseas banks and credit investment institutions to seek the possibility of being able to pay US employees and preserve their other legal rights even if the presidential order goes into effect.
TikTok has been a global success over the past year, with more than 2 billion downloads. Data from Sensor Tower shows that in June 2020, TikTok was the most downloaded non-gaming app in the world, and in the first and second quarters of 2020, TikTok was downloaded in the US far more than Facebook, Instagram, and YouTube.
TikTok continues to be most downloaded non-gaming mobile app in July
Due to ByteDance's Chinese origins, TikTok has been under constant scrutiny for "affecting national security" in the US. In August of this year, Trump issued two consecutive executive orders to block ByteDance on the grounds of "national security".
In addition to the August 6 trading ban, Trump also issued an executive order on August 14, requiring ByteDance to sell or divest the company's TikTok business in the United States within 90 days.
Trump also granted the attorney general the authority to take any necessary steps to enforce the order. The executive order is based on an investigation by the Committee on Foreign Investment in the United States (CFIUS).
