(MENAFN) TikTok, the popular video-sharing app, and its Chinese parent company, ByteDance, have taken legal action against the US federal government, filing a lawsuit over a law that mandates the sale of the app to another company or face prohibition in the United States. This lawsuit, filed recently, marks the initiation of what could potentially evolve into a protracted legal battle over the future of TikTok's operations within the country.
The crux of the lawsuit centers on the law signed by President Joe Biden as part of a broader USD95 billion foreign aid package, known as the Protecting Americans from Foreign Controlled Apps Act. TikTok and ByteDance assert that the law is inherently unconstitutional, contending that its sponsors are attempting to downplay the severity of the legislation by framing it as a regulation of ownership rather than an outright ban on TikTok.
Under the terms of the law, the company owning TikTok is required to divest the platform within a nine-month timeframe. If the sale process is still ongoing at the end of this period, an additional three months are granted to finalize the deal. Despite these stipulations, TikTok and ByteDance have adamantly stated that they have no intentions to sell the application. Moreover, they emphasize the practical challenges of such a sale, particularly the necessity of obtaining approval from Beijing. Chinese authorities have previously opposed the forced sale of TikTok and have reiterated their opposition in this instance as well.
In their lawsuit, TikTok and ByteDance argue that the law effectively strips them of any meaningful choice in the matter, compelling them to navigate a complex and potentially untenable situation. This legal challenge signals a firm stance from TikTok and ByteDance against what they perceive as unjust and unconstitutional government intervention in their operations. As the legal proceedings unfold, the outcome will hold significant implications for the future of TikTok's presence in the US market.
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