TikTok Challenges $0 Ban in 2025, Labels It ‘Unconstitutional’ in Federal Court
In 2025, TikTok has filed a federal lawsuit to block the U.S. government’s nationwide ban, arguing the law violates constitutional rights and seeking to protect its operations amid national security concerns.
Essential Insights
- On Tuesday, TikTok initiated legal action in federal court to overturn the 2024 U.S. ban targeting its platform.
- The ban, enacted into law by President Joe Biden in April 2024, mandates ByteDance, TikTok’s Chinese parent company, to sell its U.S. operations within one year or face a complete nationwide prohibition citing national security risks.
- TikTok asserts the ban infringes constitutional protections, accusing Congress of bypassing First Amendment rights under the guise of national security.
- ByteDance claims the required 'qualified divestiture' is unfeasible from commercial, technological, and legal standpoints.
- UBS analysts note TikTok’s chances in court are limited due to prevailing national security concerns, emphasizing that such issues typically prevail in legal disputes.
TikTok officially reported filing a petition challenging the ban, alongside ByteDance’s request for Attorney General Merrick Garland to review the constitutionality of the legislation.
Constitutionality Questioned
TikTok contends the ban is blatantly unconstitutional, highlighting even lawmakers behind the act have acknowledged this, attempting to frame the legislation as a mere ownership regulation rather than an outright ban.
The law requires ByteDance to divest TikTok’s U.S. assets within a year or face a nationwide shutdown, justified by national security concerns.
TikTok emphasizes that the 'qualified divestiture' demanded is impossible commercially, technologically, and legally, and even if possible, would represent an unprecedented overreach of government power.
The company warns that if Congress can enforce such measures, it could circumvent First Amendment protections by compelling any media publisher to sell under national security pretexts to avoid closure.
’Project Texas’ Security Initiative
TikTok highlighted its proactive $2 billion investment in "Project Texas," designed to address U.S. security concerns by isolating American user data on Oracle servers within the U.S., maintaining strict communication with global TikTok systems.
The ban is anticipated to face protracted legal challenges, potentially delaying any forced sale or shutdown.
UBS experts suggest limited legal recourse remains for TikTok, referencing ex-FCC officials who stress that national security considerations typically dominate judicial outcomes.
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