ByteDance, TikTok’s parent company, is legally challenging an order to divest its American operations due to national security concerns. Beyond protecting its own interests, the outcome of TikTok’s lawsuit may set a precedent for future legislation.
The company sought legal recourse from the US Court of Appeals in Washington, D.C., arguing that the April 24 law forcing its American divestment is “plainly unconstitutional”. The law allegedly interferes with existing contractual relationships and the legal protection against seizure of private property sans just compensation.
ByteDance further argues that it has been unfairly targeted by the legislation, resulting in a significant hit to its revenues. The law, which went into effect the same day it was implemented, granted ByteDance nine months to sell its American operations, with a possible extension of three months if a sale is already in progress.
However, ByteDance contends that this mandated timeframe is impractical due to the inherent technological, legal, and commercial challenges.
ByteDance’s legal battle against US divestment
Moreover, ByteDance asserts that the law infringes upon the First Amendment rights of free speech enshrined in the US Constitution.
Despite its legal battles, ByteDance remains unwilling to relinquish ownership of TikTok. New regulations may dictate that potential buyers will need access to the company’s coding algorithm—a requirement that could pose its own set of legal difficulties.
If left unchallenged, the new law could result in the shutdown of TikTok by January 19, 2025, affecting its 170 million American users. ByteDance argues that the future of the platform could be in serious jeopardy, disrupting the large community it has fostered over the years.
Even with TikTok’s global popularity, legal challenges continue to arise, mostly due to national security concerns. Some members of Congress maintain that the April legislation is necessary to protect American users, contributing to a potential regulatory showdown. As the fate of TikTok in the USA remains uncertain, users and influencers eagerly await the court’s decision on the April legislation.
