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Lawsuit Challenges Trump Administration’s TikTok Deal as Breaching 2024 Divestiture Law

Two Alphabet and Meta shareholders ask the D.C. Circuit to void extensions and the January joint venture so the government enforces the statute without seeking a platform ban.

Overview

  • The Public Integrity Project filed the March 5 petition in the D.C. Circuit on behalf of ZhaoCheng Tan and Garrett Reid, naming President Donald Trump and Attorney General Pam Bondi.
  • Plaintiffs argue the administration unlawfully issued multiple deadline extensions and directed non‑enforcement of the Protecting Americans From Foreign Adversary Controlled Applications Act, which allows at most one limited extension.
  • The suit challenges the January 2026 TikTok USDS Joint Venture, noting ByteDance retained a 19.9% stake and, per the complaint, continues to own and license the recommendation algorithm to the U.S. entity.
  • The filing alleges prohibited operational ties persist, including ByteDance influence over key functions and a board role for TikTok CEO Shou Zi Chew at the U.S. venture.
  • The investors say they were financially harmed as Alphabet and Meta shareholders and seek a declaratory judgment that could compel enforcement or renegotiation; the Justice Department and companies declined or did not provide comment.