TikTok Prepares Legal Action Against Trump's Ban Order... "Will Sue in US Court"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] TikTok, facing the risk of being expelled from the United States following President Donald Trump's executive order to sell all U.S. business units within 90 days, has decided to take legal action. TikTok argues that the forced sale order did not follow due process, making it possible to file a lawsuit in U.S. courts.

According to foreign media including CNN, on the 22nd (local time), TikTok plans to file a lawsuit against President Trump's executive order as early as next week. Earlier, President Trump issued an executive order demanding that ByteDance, TikTok's parent company, sell all of TikTok's U.S. business units within 90 days, citing national security threats. Additionally, on the 6th, President Trump signed an executive order banning transactions with Tencent, the parent company of WeChat, including ByteDance.

The Trump administration stated that the executive order was based on the International Emergency Economic Powers Act (IEEPA), which allows the president to block transactions and trade during a national emergency threatening national security. However, TikTok maintains that President Trump did not follow due process. TikTok is known to plan to challenge the president's designation of the company as a national security threat. Previously, ByteDance issued a statement saying, "If the U.S. government does not treat us fairly, we will sue in U.S. courts."

Some analysts interpret TikTok's lawsuit as a protective measure to avoid a disadvantageous position in the sale negotiations and to delay the forced sale of TikTok. Currently, ByteDance is negotiating the sale of TikTok with U.S. companies such as Microsoft (MS).