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TikTok Preparing Legal Challenge To Trump Order: Report

TikTok is preparing to challenge an executive order from U.S.

Benzinga · 08/22/2020 16:55

TikTok is preparing to challenge an executive order from U.S. President Donald Trump that prohibits U.S.-based companies from doing business with the app and its parent company ByteDance, according to a report from Reuters.

Trump's Exec Order: On Aug. 14, Trump signed an executive order giving ByteDance 90 days to divest its U.S. operations for the video-sharing app.

ByteDance is reportedly in talks with Oracle Corporation (NYSE:ORCL), Microsoft Corp. (NASDAQ:MSFT) and Twitter Inc. (NYSE:TWTR) about a potential acquisition. 

See also: Oracle Joins Microsoft In Race To Acquire TikTok's Business In Major Markets: FT

TikTok Plans To Stay Online: Vanessa Pappas, head of the U.S. operations for ByteDance, said that TikTok will remain functional despite the looming threats from the Trump administration.

“We believe we have multiple paths forward to ensure that we continue to provide this amazing app experience to the millions of Americans who come to rely on it every day," Pappas told Bloomberg.

“We’ve made it clear that we strongly disagree with the conclusions of CFIUS (Committee on Foreign Investment in the US) and we're certainly disappointed in the outcome that we saw there," she reportedly said. “We still haven't been presented with any evidence to back up those claims and assertions."

U.S. officials have raised privacy concerns about the app, stating user-related data might be passed on to the Chinese intelligence agencies.

What's Next: It's unclear where TikTok may file a lawsuit, Reuters said. 

White House officials declined to comment on the issue, according to the newswire.

Related Links:

ByteDance Gets 90 Days To Divest Its US Stake In TikTok

Twitter In Talks To Merge With TikTok US Business: WSJ