TikTok to challenge Trump's order banning transactions with the video app: Report

Legal challenge pertains to the executive order, which Trump issued on August 6


Slapped with an executive order that prohibits companies from transacting with TikTok and its Chinese parent company ByteDance, the video sharing app is preparing to mount a legal challenge as early as Monday against US President Donald Trump’s order. 

According to a Reuters report, TikTok’s legal challenge pertains to the executive order, which Trump issued on August 6, in which he directed the Secretary of Commerce to come up with a list of transactions involving ByteDance and its holdings that should be banned after 45 days. Later on August 14, Trump issued an executive order that gave ByteDance 90 days to divest the US operations of TikTok for which talks are going on with the likes of Microsoft and Oracle.

TikTok plans to argue that the August 6 executive order’s reliance on the International Emergency Economic Powers Act deprives it of due process, the report said citing sources. TikTok will also contest its classification by the White House as a national security threat.

The company had previously said it was exploring its legal options, and its employees were also preparing their own lawsuit. 

However, TikTok’s legal challenge would not shield ByteDance from having to divest the app. This is because it does not pertain to the August 14 order on the sale of TikTok, which is not subject to judicial review.

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