TikTok Plans to challenge US orders banning transactions within the app

TikTok, after facing major backlash and facing the debate around significant data breach, has been banned by India. The United States has also planned to put various restrictions on functioning. Apart from the allegations faced by TikTok, it is also a race to become the Technology and Data superpower.

As the US ordered to ban the transactions within the video app, TikTok is all set to challenge President Donald Trump’s executive order prohibiting transactions with the popular short video app and its Chinese parent Byte Dance, according to people familiar with the matter. Donald Trump issued an executive order Aug. 14 that gave ByteDance 90 days to divest the US operations of TikTok. Previously, Byte Dance has been making considerable progress in reference to the deal with Microsoft Corp and Oracle, which plans to acquire the app. Some of Byte Dance’s US investors could also join the winning bid.

TikTok legal challenge pertains to an executive order from early in August, that ordered the Secretary of Commerce to come up with a list of transactions involving Byte Dance and the operations that should be banned.

In opposition to which, TikTok plans to argue that the Aug. 6 executive order’s reliance on the International Emergency Economic Powers Act deprives it of the due process, according to Reuters, TikTok will also clarify the allegations in the White House as a national security threat, it added.

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The company did say that it is willing to explore all possible legal actions while the allegations stand firm, and the employees, too were preparing their own lawsuit. An app which is known for viral dancing videos amongst teenagers has a huge database, the users have expressed concerns that the information might be passed on to Communist China due to a law that requires all the companies working in China to mandatorily share the data with the government. Although TikTok’s legal challenge would not shield Byte Dance from having to divest the app as the order of the Aug. 14 to divest the app, is not subject to judicial review.

As the countries are now becoming aware of the untrusted “Chinese apps,” Trump’s administration, too is fueling up the process in order to protect the citizens from data breaching and the national security which he claims to be in threat. Talking about “Chinese apps,” The administration also issued an order that would prevent WeChat from prohibiting monetary transactions.

Donald Trump said he would support the effort by Microsoft Corp to buy TikTok American operations if and only if the US government got a “substantial portion” of the proceeds as the issue is not just about protecting the National Security but becoming a superpower in tech and data.

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