An anti-corruption group has filed a lawsuit (PDF) against Donald Trump and Attorney General Pam Bondi over the deal that transferred TikTok's U.S. operations to a group of investors tied to the administration. The suit claims the arrangement violates a 2024 law requiring ByteDance to divest and alleges the deal financially benefited Trump allies while leaving the platform's algorithm under Chinese ownership. NBC News reports: The suit, filed by the Public Integrity Project, a law firm that seeks to raise the "reputational cost of corruption in America," argues the deal violates a law intended to prevent the spread of Chinese government propaganda and has enriched Trump's allies. That law, signed by then-President Joe Biden in 2024, said that TikTok couldn't be distributed in the United States unless the Chinese company ByteDance found an American-based corporate home by the day before Donald Trump returned to office. The law was upheld by the Supreme Court.
"The law was clear, but it was never enforced," says the lawsuit, filed Thursday in the U.S. Court of Appeals for the District of Columbia Circuit. "Shortly after the deadline to divest passed, President Trump issued an executive order purportedly granting an extension for TikTok to find a domestic owner and directed his Attorney General not to enforce the law." The plaintiffs in the suit are two software engineers from California: One is a shareholder in Alphabet Inc., YouTube's parent company; the other is a shareholder in Meta Platforms, Inc., which is Instagram's parent company. Both say they suffered financially due to the non-enforcement of the law. "The original motivation for this law was to prevent the Chinese government from pushing propaganda onto American audiences," said Brendan Ballou, CEO of the Public Integrity Project and a former Justice Department prosecutor. "The deal that the president approved is the absolute worst of all possible worlds, because right now ByteDance continues to own the algorithm, which means that it can censor the content that it doesn't like, but at the same time Oracle controls the data and it can censor the information that it doesn't like. Really it's a situation that's going to be terrible for users, and terrible for free speech on the platform."
Read more of this story at Slashdot.
Connexion
