Published 12:43 IST, August 25th 2020
TikTok sues US government over ban, China backs companies 'taking up legal weapons'
TikTok had scrutiny from US lawmakers and Trump administration over national security concerns and ByteDance was given deadline to sell assets to US firm.
Video app TikTok is set to file a lawsuit against the Trump administration over US President Trump’s executive orders that seeks to ban the China-owned app that he links to cybersecurity risks and data harvesting. Earlier, TikTok had detailed scrutiny from US lawmakers and Trump administration over national security concerns. TikTok’s parent company ByteDance was given a deadline of 15 September to sell its US operations to Microsoft or any other US firm as Trump threatened to ban. In a separate lawsuit, the Trump administration was dragged into court by the TikTok employee who argued that the ban threatens the livelihood of those employed with TikTok.
"The [Trump] administration ignored our extensive efforts to address its concerns, which we conducted fully and in good faith"—Tiktok said in a press release.
On August 24, TikTok accused Trump administration of “furthering the president's anti-China political campaign.”It said that the US government’s actions were not based on solid evidence and facts. The video app company filed a lawsuit at the federal court in California against the Commerce Department, President Donald Trump, and Commerce Secretary Wilbur Ross that questioned President’s “impermissibly banning" of the business and sought to overturn his executive order.
"We are shocked by the recent Executive Order, which was issued without any due process", TikTok said in a statement.
"Microsoft fully appreciates the importance of addressing the President’s concerns. It is committed to acquiring TikTok subject to a complete security review and providing proper economic benefits to the United States, including the United States Treasury", Microsoft CEO Satya Nadella said in a statement.
As per the two executive orders for ban imposed by Trump on Tiktok, the parent company ByteDance was prohibited to carry out any “US transactions”, effective September 20. Second seeks to pressurize ByteDance to sell assets within 90 days to US’ owned firm. In its formal complaint logged, Tiktok accused Trump of posing "an existential threat to TikTok's US business”, adding that Tiktok threatened to block Commerce Department’s actions legally against the "heavily politicized" executive order. Tiktok also alleged that the Trump administration did not give the company ample time to defend allegations.
We far prefer constructive dialogue over litigation. Executive Order threatening to bring a ban on our US operations — eliminating the creation of 10,000 American jobs and irreparably harming the millions of Americans who turn to this app for entertainment, connection, and legitimate livelihoods that are vital especially during the pandemic — we simply have no choice—Tiktok wrote in a blog post.
Further, Tiktok employee who sued the administration separately said in a TikTok video posted to a $30,000 GoFundMe campaign that he recorded to finance the lawsuit, “Last week, President Trump issued an executive order that prohibits any entity and any person from transacting business with Tiktok after 45 days. hat means that after Sept. 20, myself and 1,500 of my colleagues won't be able to receive a paycheck, because it will be illegal for the company to pay us. This is a step too far.”
“Dare not indulge” in transactional activity
Trump’s order forbids banks, credit firms, and payroll providers to “dare not indulge” in transactional activity with Tiktok that will be a violation, as per lawsuit filed at US District Court for the Northern District of California. Trump cited Tiktok’s links with China’s national intelligence work, as he said in a letter to House Speaker Nancy Pelosi, accessed and cited by US broadcasters, “Spread in the United States of mobile applications developed and owned by companies in the People’s Republic of China (China) continues to threaten the national security, foreign policy, and economy of the United States”, as literal contents of the letter. China reportedly said that it supported the video-sharing app's legal charges against the Trump administration and the US government.
Chinese Foreign Ministry spokesperson Zhao Lijian said at a press conference that he supports companies in 'taking up legal weapons' to safeguard their rights and interests.
Updated 12:43 IST, August 25th 2020