After President Donald Trump decided to ban the services of TikTok, the popular video-sharing app, in the US, the company is reportedly planning to challenge it.
TikTok could file the lawsuit in the US District Court for the Southern District of California (this is where TikTok’s US headquarters are located) as early as Tuesday.
The company believes that issuing such a ban is unconstitutional.
During the lawsuit, the company representatives will also attempt to prove that TikTok is not a threat to the country’s national security.
Trump signed the executive order on Thursday.
As part of his demands, every American company is required to cease all business relationships with the following companies:
- ByteDance (the parent company of TikTok)
- Tencent (the parent company of WeChat)
In fact, TikTok had already started working on the response by the time the news came out from Trump’s cabinet.
One of the company’s arguments to dispute the order is the fact that it was “issued without any due process”.
Another argument claims that such a move would undermine global businesses’ trust in how the US is committed to following the rule of law.
The White House decided to ban the app using the following mechanisms:
- The National Emergencies Act
- The International Emergency Economic Powers Act
Under the latter, the President has the power to suspend economic relationships with other companies and issue tariffs.
At the time of issuing the executive order, Microsoft was reportedly in talks to acquire TikTok.
According to company officials, Microsoft is fully committed to subject TikTok to a thorough security review while also benefiting the US economy.
Analysts and bankers estimate that TikTok’s US business is worth between $20bn and $50bn.
In the US, the app is currently serving around 100 million users.