Getting ready TikTok, owned by ByteDance, to file a legal challenge early Monday against Trump’s executive orders.
President (Donald Trump) issued an executive order on August 14 granting ByteDance 90 days to withdraw US TikTok operations and prohibiting transactions with the popular short video app.
ByteDance is making progress in conversations with potential acquirers, including Microsoft and Oracle, and some US ByteDance investors can also join the winning bid.
The sources said: The legal challenge that TikTok wants to file relates to a previous executive order issued by Trump on August 6.
This executive order directed the Minister of Commerce to draw up a list of transactions involving byteDance and their property that should be blocked after 45 days.
TikTok plans to say: Trump’s executive orders, especially the August 6 order based on the International Economic Emergency Powers Act, deprives him of legal action.
The sources added that Tik Tok will also object to the White House’s classification as a threat to national security.
It was not immediately clear which court TikTok plans to use in order to file the lawsuit, and the company had previously said: It is examining its legal options, and its employees are also preparing their own lawsuit.
While Tik Tok is popular for its videos of people dancing, US officials have expressed concerns that user information could be passed on to the Communist government in China.
The legal challenge of Tik Tok will not protect the parent company ByteDance from having to withdraw the app, because the lawsuit does not relate to the August 14 executive order regarding the sale of Tik Tok, which is not subject to judicial review.
However, the move shows that ByteDance is seeking to use the law as it tries to prevent TikTok deal negotiations from turning into a fast sale.
The Trump administration has stepped up efforts to block what it considers unreliable Chinese apps from the US digital networks.
Other than TikTok, Trump has also issued an order banning transactions with Tencent’s WeChat.
Trump said he supports Microsoft’s efforts to buy US TikTok operations if the US government gets a large chunk of the revenue, but also said that there are other potential buyers interested, such as Oracle.