A federal lawsuit has been filed against President Donald Trump and Attorney General Pam Bondi, challenging the administration’s decision to approve TikTok’s restructured ownership arrangement on Thursday.
The legal action, brought by the Public Integrity Project representing two American retail investors who own stakes in competing social media companies, was filed in the U.S. Court of Appeals for the District of Columbia. The plaintiffs argue that the government’s approval violates a 2024 federal law and seek to force a renegotiation of the arrangement.
According to the filing, the goal is to require a new deal “that doesn’t put administration allies in a position to censor political content on one of the world’s most popular media platforms.”
The legal challenge does not attempt to shut down TikTok, which serves 200 million American users.
Last April, Congress enacted legislation mandating that ByteDance divest its American operations by January 2025 or face prohibition and potentially hundreds of billions in penalties. However, Trump chose not to implement the law’s enforcement, while Bondi informed businesses they would not face consequences for continuing TikTok operations.
ByteDance announced that TikTok USDS Joint Venture LLC, completed in January with 80% ownership by non-Chinese stakeholders, would protect American user information, applications, and algorithms using data security and cybersecurity protocols. The company provided limited information regarding the ownership transfer or financial terms.
The lawsuit states: “Under the announced deal, ByteDance would still control all the essential elements of TikTok. Such a deal would subvert the very purpose of the TikTok Law, as ByteDance could continue to push Chinese propaganda and censor the content it does not like.”
This ownership restructuring represents a significant development for the social media platform following years of legal battles that started in August 2020 when President Trump initially attempted to prohibit the application due to national security issues.
This marks the first court challenge to the ownership deal and may provide insight into the new joint venture structure that is crucial for TikTok’s continued operation in America, despite criticism from certain congressional members.
Representatives from the White House, Justice Department, and TikTok have not yet provided responses to requests for comment.
Trump has stated that the arrangement satisfies the requirements outlined in the divestiture legislation.
