Trump Faces Federal Lawsuit Over TikTok Deal Allegedly Violating 2024 Divestiture Law
President Donald Trump and Attorney General Pam Bondi are facing a federal lawsuit over the government’s handling of a deal involving TikTok’s U.S. assets. The case challenges whether the administration followed a law requiring the platform’s Chinese parent company to divest its American operations.
The lawsuit claims the administration ignored or weakened enforcement of legislation passed by Congress in 2024 to limit foreign influence over the popular social media platform.
According to Reuters, the complaint was filed in the U.S. Court of Appeals for the District of Columbia by the Public Integrity Project on behalf of two American retail investors tied to rival social media platforms. The suit challenges the government’s approval of a restructuring that allows TikTok’s parent company ByteDance to establish a U.S.-based joint venture.
The dispute centers on whether that structure actually meets the law’s requirements. Congress ordered ByteDance to sell its U.S. TikTok assets or face a potential ban, but the administration instead approved a deal allowing a new joint venture reportedly majority-owned by American investors.
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The lawsuit states the arrangement could “subvert the very purpose of the TikTok law.”
TikTok says the structure protects U.S. user data and platform operations while maintaining continuity for the roughly 200 million Americans who use the app. But critics argue ByteDance could still retain influence over algorithms or content moderation.
The case also raises broader questions about presidential authority over national security laws governing foreign technology companies.
The legal challenge is the first major court test of the TikTok divestiture deal and could determine whether the agreement stands or must be renegotiated.
For now, the lawsuit opens a new legal front in the long-running U.S. battle over TikTok’s ownership and influence.
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