Tiktok Sues US Under Prohibition Act – E24

The Chinese company believes that the requirement to either sell or close down violates the constitution.

The case is updated.

Tiktok’s Chinese holding company, Bytedance, is also part of the lawsuit, writes the New York Times.

A recent law signed by Joe Biden barely two weeks ago is the reason.

The law means that Tiktok must either get rid of the owner Bytedance, or the authorities notify that they will ban the app. The rationale is that Tiktok can be a threat to national security.

According to the New York Times, the new law violates the United States’ First Amendment on free speech by removing an app that millions of Americans use to share their views and communicate freely.

Tiktok claims that a sale is “simply not possible”, at least within the 270-day deadline set by the United States.

– For the first time in history, Congress has passed a law that hits a single named expression platform with a national ban, and denies every American from participating in a unique online community with more than a billion people around the world, the company writes in the court papers, which the newspaper has gained access to.

At the same time, Tiktok warns that the law will end with Tiktok shutting down in the US on 19 January 2025.

The Wall Street Journal also reports on the lawsuit on Tuesday.

The background for the new law is that many American politicians believe Tiktok may pose a threat to national security, due to its connection to China.

Among other things, there is concern that Bytedance may be pressured by the Chinese authorities to hand over American user data.

Bytedance is owned 20 percent by the Chinese founders and investors, 60 percent by global investors, while the employees own the remaining 20 percent, according to Politico. The Tiktok owner is headquartered in Beijing.

Tiktok has denied throughout that they are a threat, and criticized the bill that has now been passed. Among other things, they have referred to freedom of expression, and the importance the app has for both companies and users.

Already when the law was signed, the company’s CEO Shou Zi Chew hinted that they would go to court.

– Rest assured, we’re not going anywhere. The facts and the constitution are on our side and we expect to win again, said the chief executive in a video after Biden signed, according to Reuters.

The video app has around 170 million users in the US.