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TikTok Urges US Appeals Court to Overturn Law Mandating Sale of US Assets

By  |  August 19, 2024

TikTok has called on a federal appeals court to overturn a law that would require its parent company, ByteDance, to sell its U.S. assets or face a potential ban, according to a statement made on Thursday. Per Reuters, TikTok argued that the U.S. Department of Justice has misrepresented the app’s ties to China, leading to factual errors in the case.

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    The controversy centers around concerns that TikTok poses a national security risk, as argued by Justice Department lawyers last month. The government claims that the app allows the Chinese government to collect data from American users and covertly manipulate the content they see. TikTok has strongly refuted these claims, stating on Thursday that it is undisputed that its content recommendation engine and user data are stored within the United States on cloud servers managed by Oracle. Additionally, the company emphasized that content moderation decisions impacting U.S. users are made within the country.

    The legal battle follows a law signed by President Joe Biden on April 24, which sets a deadline of January 19, 2025, for ByteDance to divest from TikTok’s U.S. operations or face a ban. The White House has expressed that its primary concern is eliminating Chinese-based ownership of the app on national security grounds, rather than banning TikTok outright.

    Read more: TikTok Updates Data Usage Regulations To Fit EU Laws

    As the legal challenge progresses, the appeals court is scheduled to hold oral arguments on September 16. This timing puts TikTok’s fate at the forefront of political discourse in the crucial weeks leading up to the November 5 presidential election.

    Notably, TikTok has become a significant platform in the 2024 election cycle. According to Reuters, former President Donald Trump, a Republican presidential candidate, joined TikTok in June and stated that he would never support a ban on the app. Meanwhile, Vice President Kamala Harris, the Democratic presidential candidate, also joined TikTok in July, incorporating the platform into her campaign strategy as she seeks to connect with voters through social media.

    Source: Reuters