TikTok looks like it is ready to launch a legal challenge executive order from the U.S. As reported by Reuters, the order prevents transactions with the popular video app and its parent company.
Rumours circulated last week that TikTok had plans to challenge the order. We know its workers are disappointed in the decision and have filed their own suit against the Trump administration.
However, despite the company’s anger towards the order, plans to deal with it are already underway. A number of companies are interested in purchasing TikTok. The most recent of which to join the race is Alphabet, the parent company of Google. They join Microsoft and Oracle in talks to take over TikTok’s U.S. operations.
TikTok ready to fight the executive order
Despite plans to sell the U.S. portion of the company, TikTok still has not given up hope of mounting a legal challenge to the executive order.
The executive order gave TikTok and ByteDance 90 days to divest the U.S. operations. Trump issued the order on August 15, however, this legal challenge pertains to an earlier order issued on August 6.
The order instructed the Secretary of Commerce to create a list of transactions by ByteDance that they should ban after 45 days.
The short video company will argue that the order’s use of the International Emergency Economic Powers Act deprives it of due process. TikTok also plans to contest the White House’s classification of the company as a threat.
TikTok still exploring legal options
As things stand it is unclear as to which court TikTok will file this lawsuit. The sources that came up with this story requested to remain anonymous. ByteDance also refused to comment on this specific issue.
This legal challenge would not change the fact that ByteDance would have to divest the app in the U.S. As it does not pertain to the Aug. 14 order nothing would change on this front.
However, what this does mean is that ByteDance will try to use as much legal ammunition at its disposal. The plan being that to prevent sale negotiations turning into a fire sale.
Trump and his administration have said it would support efforts for Microsoft and Oracle to purchase TikTok. This is on the condition that the U.S. government got a “substantial portion” of the proceeds.
As the 90 day countdown ticks closer expect more twists and turns as TikTok try to make things as hard as possible for the U.S. A sale still remains likely but what form that sale takes is currently anybody’s guess.