Controversy Surrounds TikTok Deal: Allegations of Legal Violations Surface
In a dramatic twist, a newly formed anti-corruption group has filed a lawsuit against former President Trump and his attorney general. The lawsuit accuses them of disregarding legal protocols during the controversial sale of TikTok’s U.S. assets to close associates of the former president.
The legal action, initiated in a federal court in Washington, D.C., argues that the Trump administration sidestepped laws intended to curb Chinese influence through digital platforms. Instead, it’s alleged they facilitated a transaction benefitting businesses linked to Trump allies. Brendan Ballou, CEO of The Public Integrity Project, stated, “By flaunting the law so publicly, I think the president is trying to send a message that he is quite literally beyond the reach of the courts, beyond the reach of Congress, beyond the reach of the rule of law.”
The White House and the Department of Justice have yet to comment on the lawsuit. The case spotlights a law passed two years prior that aimed to transfer control of TikTok’s U.S. operations from ByteDance to non-Chinese investors, amid fears of data misuse and propaganda. Despite the law, Trump granted multiple extensions to ByteDance.
The Supreme Court had earlier upheld the law, countering ByteDance’s claims of free speech violations. However, the lawsuit argues that the administration’s failure to enforce the law and investigate the matter constitutes an ongoing legal breach.
In January, Trump approved a sale of TikTok’s assets to a consortium including Oracle and Abu Dhabi’s MGX, among others with ties to his campaign or family business. Trump celebrated the deal on social media as a “beautiful conclusion.”
Despite the sale, ByteDance retains TikTok’s recommendation algorithm, a point of contention in the lawsuit, which alleges this is yet another breach of the 2024 law.
The plaintiffs, software engineers Zhaocheng Anthony Tan and Garrett Reid, are also investors in Alphabet Inc. and Meta Platforms Inc., who argue they have been unfairly disadvantaged by the administration’s actions.
Ballou, a former Justice Department attorney, highlights the recent disarray within the DOJ and emphasizes the need for external bodies to address white-collar crime. “Right now, the basic infrastructure for prosecuting white collar crime is being dismantled at the Department of Justice,” he remarked.
—NPR’s Bobby Allyn contributed to this report.
