UPDATE — SEPTEMBER 2025: After the U.S. Supreme Court upheld the Protecting Americans from Foreign Adversary Controlled Applications Act on January 17, 2025, TikTok’s future hinged on a potential divestiture. Since then, several pivotal events have reshaped the outcome:
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Trump Executive Order (Sept. 25, 2025): President Donald Trump signed an order approving a framework that allows TikTok to remain in the U.S. under new American-led ownership.
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Ownership Shift: TikTok’s U.S. operations will move to a joint venture majority-owned by American investors, with ByteDance retaining less than 20 percent.
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Data & Algorithm Controls: The new entity will oversee TikTok’s algorithms, data storage, and content moderation. All sensitive U.S. user data must be stored on American cloud systems, and recommendation models using U.S. data will be retrained and monitored by U.S. security partners.
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National Security Safeguards: Ongoing monitoring of TikTok’s code, software updates, and algorithms will be conducted to ensure compliance. DOJ enforcement of the ban is suspended for 120 days while the transaction closes.
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Supply Chain & Labor Rules: The deal preserves requirements for domestic semiconductor sourcing, high labor standards, and protection against foreign influence.
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Global Alignment: The U.S. State Department is engaging with allies to promote “trusted AI and digital infrastructure corridors,” echoing broader security goals beyond TikTok.
Completion of the divestiture and a formal CFIUS agreement with U.S. investors. Trump has reserved the right to issue additional orders if needed to secure national security.
ORIGINAL NEWS STORY:
TikTok Files Lawsuit Challenging American Divestment Bill
TikTok and ByteDance have filed a lawsuit challenging the constitutionality of the Protecting Americans From Foreign Adversary Controlled Applications Act. The legislation, which was signed last month, stipulates that ByteDance must divest from TikTok within nine months. Failure to do so could result in a ban in the country. The bill was motivated by concerns over potential data sharing between TikTok and the Chinese government
According to the lawsuit, the bill effectively bans TikTok, which they say is used by over 170 million American users. The lawsuit argues that the legislation violates several constitutional rights, including freedom of speech, due process, equal protection, and the prohibition against uncompensated takings of private property.
On the First Amendment claim, the plaintiffs argue the Act is an unconstitutional content- and speaker-based restriction that fails strict scrutiny review. They assert the government has provided no evidence that TikTok poses actual national security threats, only speculation. The lawsuit claims Congress disregarded less restrictive alternatives like the comprehensive data security and content moderation measures TikTok negotiated with government agencies over four years.
The lawsuit also alleges the Act is an unconstitutional bill of attainder because it singles out and imposes punitive legislative punishment solely on TikTok and ByteDance without a judicial trial. It claims a denial of equal protection because the Act treats TikTok differently than other similarly situated companies without any rational basis. Further, the plaintiffs argue the Act violates the Takings Clause by forcing ByteDance to shut down or sell its U.S. TikTok business without just compensation. Even a “qualified divestiture” under the Act is allegedly commercially, technologically, and legally infeasible.
Conclusion
The lawsuit requests declaratory and injunctive relief against enforcement of the Act. It represents a high-stakes constitutional challenge to Congress’s effort to ban a major online platform raising novel First Amendment issues about the government’s power to regulate digital speech forums.
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