In a bold legal move, ByteDance, the parent company of TikTok, has filed a lawsuit against the U.S. government. The lawsuit challenges a new law that mandates ByteDance to divest its investments in TikTok. This law, according to ByteDance, infringes on the freedom of expression as guaranteed by the U.S. Constitution.
The case has been registered with the Court of Appeals in the District of Columbia Circuit. The U.S. Justice Department has declined to comment on the ongoing case. Recently, U.S. legislative bodies passed a law endorsed by President Biden, requiring ByteDance to disengage from TikTok by January 19 of next year. Failure to comply would lead to TikTok's ban in the United States, citing concerns over American data potentially being transferred to China and surveillance fears.
ByteDance has repeatedly assured that it does not transfer U.S. user data abroad and criticizes the law as based on unfounded allegations and unnecessary fears. The company claims that this move by the U.S. Congress (both Senate and House) marks the first time a free speech platform faces a nationwide permanent ban. ByteDance also disclosed that 58% of its shares are held by international investors like BlackRock and General Atlantic, with 21% of the equity being held by its employees, including over 7,000 Americans.
The lawsuit comes at a time of intensifying dominance disputes over the internet and technology sectors between China and the U.S. Analysts view TikTok as the new battleground in this global tech supremacy war. Currently, TikTok boasts over 170 million users in the U.S., while China has directed Apple to remove apps like WhatsApp and Threads from its app store last year, citing security concerns.
