TikTok And US Justice Department Push For Speedy Court Action On Divestment Law: Report

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The U.S. Justice Department and TikTok have reportedly requested a U.S. appeals court to expedite the legal proceedings regarding a new law that mandates parent company BytDance to divest TikTok’s U.S. assets by a certain date or face a ban.

What Happened: The U.S. Justice Department and TikTok, along with parent company ByteDance and a group of TikTok content creators, have requested the U.S. Court of Appeals for the District of Columbia to expedite the legal process, reported Reuters. The law in question requires ByteDance to divest TikTok’s U.S. assets by Jan. 19, 2025, or face a ban.

The parties have proposed a fast-track schedule to ensure a ruling by Dec. 6, allowing them to seek review from the Supreme Court if necessary before the U.S. deadline. This move is intended to resolve the legal challenge without the need to request emergency preliminary injunctive relief, TikTok reportedly said.

The law, signed by President Joe Biden on April 24, further prohibits app stores like Apple Inc. and Alphabet Inc.’s Google from offering TikTok and bars internet hosting services from supporting TikTok unless ByteDance divests TikTok. It was passed overwhelmingly in Congress amid concerns that China could access data on Americans or spy on them through the app.

Earlier, in its lawsuit, the company admitted that Xi Jinping's Communist Party of China would not allow it to sell the algorithm that powers TikTok.

Why It Matters: On Tuesday, a group of TikTok creators filed a lawsuit to block the law, arguing that it has had a profound effect on American life.

The platform has been at the center of a geopolitical tug-of-war, with the U.S. government raising concerns over national security due to ByteDance's ties to China. TikTok's CEO Shou Zi Chew has been vocal, stating in a video that the company will not back down without a fight.

The courts are now faced with a pivotal decision, as they must weigh the national security concerns against the freedom of expression. With nearly 170 million users in the U.S., the outcome of this legal battle is expected to have far-reaching implications for digital platforms and user rights.

Check out more of Benzinga's Consumer Tech coverage by following this link.

Read Next: Tesla's German Factory Expansion Gets Local Council's Nod Despite Protests

Photo courtesy: Shutterstock


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