TikTok, ByteDance file legal suit to block potential US ban

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TikTok and its parent firm ByteDance are pursuing legal action to combat a law that may ban or force a sale of the short-video app, Reuters reported.

The companies believe that the law, which has been ratified by US President Joe Biden, violates the First Amendment free speech rights of the US Constitution. The lawsuit asserts that selling off TikTok is also unfeasible, practically or legally.

ByteDance had been given until January 19 next year to sell TikTok or face a nationwide ban for the app. Should it come down to it, TikTok may choose to leave the US – a relatively smaller market in its portfolio – rather than sell off the algorithm-rich platform, according to a previous report.

According to the suit, the Chinese government had “made clear” that it would not allow ByteDance to divest its recommendation engine, which is “a key to the success of TikTok” in the US. The companies said that moving TikTok’s code to the US “would take years for an entirely new set of engineers to gain sufficient familiarity.”

The companies also stressed that 58% of ByteDance is held by global investors like BlackRock, General Atlantic, and Susquehanna International Group. Meanwhile, 21% is held by the Chinese company’s founder, with the rest by its employees, which include about 7,000 Americans.

TikTok has shelled out US$2 billion to keep the data of its US users safe, according to the lawsuit. The app also agreed to a “shut-down option” that would allow the US government to ban the platform if it violates some commitments.

See also: US TikTok ban looms: What’s next for ByteDance?