Tiktok Files Legal Action to Stop Download Ban on Sunday

By Dana Cruz First Posted: Sep 24, 2020 05:29 AM EDT

TikTok has requested an injunction against the upcoming download ban on its app in the United States.

TikTok Expected To Announce US Sale In Coming Weeks

(Photo : by Mario Tama/Getty Images)
The TikTok logo is displayed outside a TikTok office on August 27, 2020 in Culver City, California.

The legal action came as the fate of TikTok hangs in the balance of a possible September 27 download ban.

The download ban was initially lifted due to developments in the TikTok-Oracle deal, which received its "blessing" from President Donald Trump.

A report from Variety said TikTok was concerned with Trump, who cited "national security" concerns as a pretext to impose a download ban and shut them down. The company, per its motion, claimed that the President was motivated "by political considerations."

They claimed that the Trump administration's executive order did not give them the right to due process and freedom of speech.

They are asking a District of Columbia judge to block the rule that requires Apple and Google app stores to remove TikTok on September 27, said a report from The Verge.

Impact of a Download Ban

The company fears that, while their deal with U.S. companies are at limbo, the ban could cause "irreparable harm" to their U.S. operations, said an NBC News report.

TikTok Interim head executive Vanessa Pappas said the app could lose half of its user base if they are going to be banned for just two months.

She added that the loss of users could go up to 80 to 90 percent if the ban stays in place for longer than six months. There are 100 million U.S. users on TikTok.

Pappas added that they could also lose workers because of the threats. She said there were 52 candidates who were offered jobs at the company, but they declined due to threats of a ban.

The company also had delayed and canceled advertising. It resulted to $10 million in lost revenue for the month of August.

Trump first gave ByteDance until September 15 to sell TikTok to a local company. The download ban followed on September 20.

The tentative deal with Oracle put the ban at a last-minute halt but it's not yet clear if ByteDance will finally divest TikTok to Oracle. As the deal also has to go through the Chinese government, there is still some level of uncertainty to how final the deal may be.

TikTok also sued the administration over its first rule last month. They said the decision of the president exceeded his power to ban an app based on national security grounds.

Now, they are seeking a faster hearing to find out if Trump's download ban can harm them enough to justify a block of his order.

ByteDance Applies for Export License

Amid the race to seal a deal, ByteDance applied for a tech export license in China, Reuters reported.

ByteDance submitted the application to Beijing's municipal commerce bureau and is waiting for a decision.

A month prior to this, China revised its list of technologies subject to export restriction. It was the first time in 12 years that the Chinese government changed its restrictions on export tech.

Experts said this change in rules gives the Chinese government a say over any TikTok deal.