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EXCLUSIVE-TikTok to challenge US decree depriving it of source transactions

NEW YORK / WASHINGTON, Aug.22 (Reuters) – TikTok is preparing to file a lawsuit on Monday to challenge US President Donald Trump’s executive order prohibiting US companies from any transaction with the app and ByteDance, the Chinese company that owns it , Reuters learned from people familiar with the situation.

Donald Trump issued a presidential decree on August 14 giving ByteDance 90 days to cede TikTok’s activities in the United States, under penalty of banning them.

ByteDance made progress in open discussions with several potential acquirers, including Microsoft

MSFT.O et Oracle ORCL.N .

The request that TikTok intends to file targets a previous executive order by Donald Trump, issued on August 6, asking the Commerce Department to list transactions made by ByteDance and its subsidiaries that should be banned within 45 days, the sources said.

TikTok plans to highlight that the US president’s August 6 executive order, which relies on a law allowing emergency economic powers to be used, deprives him of a fair process, the sources said.

The video application, very popular with young people, will also dispute having been classified by the White House as a threat to national security, added people familiar with the matter.

It is not immediately clear which court TikTok intends to forward its complaint to. The company has said in the past that it is exploring all legal options.

ByteDance did not respond to a request for comment. A White House spokesperson declined a request for comment.

(Echo Wang in New York and David Shepardson in Washington; French version Jean Terzian)

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