What you need to know
- TikTok is preparing a legal challenge to President Trump.
- It comes after the President issued an executive order effectively banning the app in the U.S.
- TikTok's employees are reportedly preparing their own suit.
A new report says TikTok may mount its legal challenge against a recent executive order from President Trump as early as Monday, August 24.
TikTok is preparing to mount a legal challenge as early as Monday to President Donald Trump's executive order prohibiting transactions with the popular short video app and its Chinese parent ByteDance, according to people familiar with the matter.
The report says that TikTok plans to challenge the first of two executive orders, issued August 6, banning transactions between U.S. businesses and individuals, and the app. The first order gave parent company ByteDance a window of 45 days to divest TikTok to any potential buyer, the second effectively extended this to 90 days. The report notes:
TikTok plans to argue that the Aug. 6 executive order's reliance on the International Emergency Economic Powers Act deprives it of due process, according to the sources. TikTok will also contest its classification by the White House as a national security threat, the sources added.
The report says it is unclear in which court Tiktok plans to file the lawsuit, but that the company is exploring legal options. TikTok employees are also reportedly preparing their own lawsuit.
A similar legal challenge was launched to another executive order from the President targeting communication platform WeChat. The administration is reported to have told U.S. businesses that the ban will not affect operations beyond U.S. shores, notably in China.
