On Monday, it was discovered that Chinese-owned app TikTok is planning to sue the Trump administration due to a recent executive order that banned the service from being used in the U.S. It’s expected that the lawsuit will be filed on Tuesday in the Southern District of California court.
TikTok will be filing the lawsuit against the Trump administration, citing the action being unconstitutional due to the swift action taken prior to the video app sharing company having a chance to respond. According to the company’s legal team, the White House side-stepped usual proceedings of meetings and subpoenas prior to an action being taken like this.
When Trump signed the executive order barring TikTok, it cited national security reasons and allotted 45 days for the app to cease. The app is currently owned by Chinese tech company ByteDance. The president and his administration are concerned that under TikTok’s terms of service, which gather data and locational information on users, too much information can be collected by a foreign country on American citizens. While there as not been any proof presented currently that TikTok has taken any action to provide American citizen’s data to the Chinese government, according to some technology experts, it is a real risk.
There is a chance that Microsoft may purchase TikTok. However, negotiations and talks between Microsoft and ByteDance have only begun recently. Some of TikTok’s officials see the move by President Trump as a way to pressure a quick sale to Microsoft (MSFT).
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Trader Buzz). I have no business relationship with any company whose stock is mentioned in this article.