TikTok Battles Misstatement Claims: Appeals to Overturn ByteDance Divesture Law

TikTok urged a federal appeals court to overturn a law necessitating its divestiture from China-based ByteDance, refuting U.S. Justice Department claims of national security threats tied to Chinese data access. The law, signed by President Joe Biden, mandates sale by January 19, placing TikTok's future in the spotlight amid the 2024 election season.

TikTok pressed a federal appeals court on Thursday to overturn a law requiring China-based ByteDance to divest TikTok's U.S. assets to avoid a ban. The social media giant contends that the U.S. Department of Justice has misstated its ties to China, refuting claims of national security concerns regarding American data access and content manipulation.

TikTok argued that its content recommendation engine and user data are securely stored on U.S.-based cloud servers run by Oracle and that moderation decisions affecting U.S. users are made domestically. The Justice Department, however, argues the app poses a significant security threat. The legal challenge will be heard on September 16, just weeks before the November presidential election.

The law, signed by President Joe Biden, compels ByteDance to sell TikTok by January 19 or face a ban, with the White House seeking to eliminate Chinese ownership on security grounds. Both presidential candidates, Donald Trump and Vice President Kamala Harris, have utilized TikTok in their campaigns, reflecting its prominence. TikTok maintains the law infringes on its free-speech rights, equating its function to that of a U.S. newspaper republishing foreign content.

(With inputs from agencies.)