WASHINGTON, May 7 (Reuters) - TikTok and its Chinese
parent company ByteDance said on Tuesday they filed suit in U.S.
federal court seeking to block a law signed by President Joe
Biden that would force the divestiture of the short video app
used by 170 million Americans or ban its use.
The companies said they filed a lawsuit in the U.S. Court of
Appeals for the District of Columbia arguing that the law
violates the U.S. Constitution on a number of grounds, including
running afoul of First Amendment free speech protections. The
law, signed by Biden on April 24, gives China's ByteDance until
Jan. 19 to sell TikTok or face a ban.
TikTok made a copy of its lawsuit available to Reuters.
The lawsuit said the divestiture "is simply not possible:
not commercially, not technologically, not legally. ... There is
no question: the Act (law) will force a shutdown of TikTok by
January 19, 2025, silencing the 170 million Americans who use
the platform to communicate in ways that cannot be replicated
elsewhere."
Driven by worries among U.S. lawmakers that China could
access data on Americans or spy on them with the app, the
measure was passed overwhelmingly in Congress just weeks after
being introduced. The law prohibits app stores from offering
TikTok and bars internet hosting services from supporting TikTok
unless ByteDance divests TikTok by Jan. 19.
The suit also said the Chinese government "has made clear
that it would not permit a divestment of the recommendation
engine that is a key to the success of TikTok in the United
States."
It also said TikTok has spent $2 billion to implement
measures to protect the data of U.S. users and made additional
commitments in a 90-page draft National Security Agreement
developed through negotiations with the Committee on Foreign
Investment in the United States (CFIUS). That agreement included
TikTok agreeing to a "shut-down option" that would give the U.S.
government the authority to suspend TikTok in the United States
if it violated some obligations," according to the suit.
In August 2022, according to the lawsuit, CFIUS stopped
engaging in meaningful discussions about the agreement and in
March 2023 CFIUS "insisted that ByteDance would be required to
divest the U.S. TikTok business." CFIUS is an interagency
committee, chaired by the U.S. Treasury Department, that reviews
foreign investments in American businesses and real estate that
implicate national security concerns.
Biden could extend the Jan. 19 deadline by three months if
he determines ByteDance is making progress.
In 2020, then-President Donald Trump was blocked by the
courts in his bid to ban TikTok and Chinese-owned WeChat, a unit
of Tencent ( TCTZF ), in the United States. Trump, the
Republican candidate challenging Democratic President Joe Biden
in the Nov. 5 U.S. election, has since reversed course, saying
he does not support a ban but that security concerns need to be
addressed.
Many experts have questioned whether any potential buyer
possesses the financial resources to buy TikTok and if China and
U.S. government agencies would approve a sale.
To move the TikTok source code to the United States "would
take years for an entirely new set of engineers to gain
sufficient familiarity," according to the lawsuit.
The four-year battle over TikTok is a significant front in
the ongoing conflict over the internet and technology between
the United States and China. In April, Apple ( AAPL ) said China
had ordered it to remove Meta Platforms' ( META ) WhatsApp and
Threads from its App Store in China over Chinese national
security concerns.