NEW YORK/WASHINGTON: Video sharing app TikTok is preparing to mount a legal challenge to President Donald Trump’s executive order prohibiting transactions with the popular platform and its Chinese parent ByteDance.
ByteDance has been talking with potential acquirers, including Microsoft and Oracle, with some of ByteDance’s US investors possibly joining the winning bid.
TikTok’s legal challenge pertains to an earlier executive order, which Trump issued on August 6, directing the Secretary of Commerce to come up with a list of transactions involving ByteDance and its holdings that should be banned after 45 days.
TikTok will argue that the executive order relies on the International Emergency Economic Powers Act which deprives the company of due process.
