Tiktok Inc. v. Trump

CourtDistrict Court, District of Columbia
DecidedSeptember 27, 2020
DocketCivil Action No. 2020-2658
StatusPublished

This text of Tiktok Inc. v. Trump (Tiktok Inc. v. Trump) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tiktok Inc. v. Trump, (D.D.C. 2020).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

TIKTOK INC., et al.,

Plaintiffs,

v. Civil Action No. 1:20-cv-02658 (CJN)

DONALD J. TRUMP, President of the United States, et. al.,

Defendants.

MEMORANDUM OPINION

On May 15, 2019, acting pursuant to the International Emergency Economic Powers Act

(“IEEPA”), 50 U.S.C. §§ 1701–08, among other authorities, the President declared a national

emergency relating to the “unrestricted acquisition or use in the United States of information and

communications technology or services . . . supplied by persons owned by, controlled by, or

subject to the jurisdiction or direction of foreign adversaries.” On August 6, 2020, the President

invoked that national emergency declaration; determined that additional steps were necessary with

respect to Plaintiffs TikTok and its Beijing-based parent company ByteDance; provided that

certain transactions with ByteDance or its subsidiaries would be prohibited; and directed the

Secretary of Commerce to identify the prohibited transactions within forty-five days. On

September 18, 2020, the Secretary published a list of five transactions to be prohibited with respect

to ByteDance and its operations within the United States, and on September 19, revised the

implementation date for one of the sets of prohibitions and re-published the list of prohibited

transactions.

1 The first of those five prohibitions goes into effect at 11:59 p.m. today. On September 18,

2020, Plaintiffs filed this lawsuit alleging that the prohibitions exceed the President’s and

Secretary’s authority under IEEPA, violate the Administrative Procedure Act (“APA”), and are

unconstitutional under the First and Fifth Amendments and the Takings Clause. On September

23, Plaintiffs moved for preliminary injunctive relief, arguing that they have a likelihood of success

on their claims and that, absent an injunction, they will suffer irreparable harm. Pls.’ Mem. Supp.

Mot. Prelim. Inj., ECF No. 15-1, 15 (“Pls.’ P.I. Mot.”). For the reasons discussed below, Plaintiffs’

Motion is granted as to the prohibition that takes effect tonight.

I. BACKGROUND

The United States has long used economic sanctions to prohibit transactions that threaten

national security. In 1977, Congress enacted IEEPA, which provides peacetime authority to the

President “to deal with any unusual and extraordinary threat, which has its source in whole or

substantial part outside the United States, to the national security, foreign policy, or economy of

the United States, if the President declares a national emergency with respect to such threat.” 50

U.S.C. § 1701(a). Once the President has declared such an emergency, the President is empowered

to:

[R]egulate, direct and compel, nullify, void, prevent or prohibit, any . . . transfer . . . of, or dealing in, or exercising any right, power, or privilege with respect to, or transactions involving, any property in which any foreign country or a national thereof has any interest . . . with respect to any property, subject to the jurisdiction of the United States[.]

Id. § 1702(a)(1)(B).

On May 15, 2019, the President issued Executive Order 13873, Securing the Information

and Communications Technology and Services Supply Chain, 84 Fed. Reg. 22689 (May 15, 2019)

(“ICTS Order”). The President found that the widespread use of “communications technology”

2 that may be exploited by foreign adversaries was creating an “extraordinary threat to the national

security . . . of the United States.” Id. The President therefore declared a national emergency with

respect to that threat and determined to prohibit certain transactions with foreign countries or

foreign nationals that pose risks to the national security of the United States. A year later, the

President renewed that declaration, highlighting the pervasive threat posed by the close ties

between China-based technology firms and the government of the People’s Republic of China

(“PRC”). See Continuation of the National Emergency With Respect to Securing the Information

and Communications Technology and Services Supply Chain, 85 Fed. Reg. 29321 (May 13, 2020).

On August 6, 2020, the President invoked his powers under IEEPA and the national

emergency declared in the ICTS Order by identifying TikTok Inc. as a source of emerging threats

given its foreign ownership. See Exec. Order No. 13942, Addressing the Threat Posed by TikTok,

and Taking Additional Steps To Address the National Emergency With Respect to the Information

and Communications Technology and Services Supply Chain, 85 Fed. Reg. 48637 (“TikTok

Order”). TikTok is a short-loop video sharing app presently used by over 100 million Americans.

Compl., ECF No. 1, ¶ 1. The President determined that TikTok “automatically captures vast

swaths of information from its users, including internet and other network activity information

such as location data and browsing and search histories.” TikTok Order.

The President concluded that TikTok’s foreign ownership and data collection pose a risk

that the Chinese Communist Party (“CCP”) can “access . . . Americans’ personal and proprietary

information—potentially allowing China to track the locations of Federal employees and

contractors, build dossiers of personal information for blackmail, and conduct corporate

espionage.” Id. He also concluded that there is a risk of the CCP using TikTok to “censor[]

content that the [CCP] deems politically sensitive,” id., and “for disinformation campaigns that

3 benefit the [CCP], such as when TikTok videos spread debunked conspiracy theories about the

origins of the 2019 Novel Coronavirus.” Id.

To mitigate those risks, the President directed the Secretary of the U.S. Department of

Commerce to identify a list of prohibited transactions with “ByteDance . . . or its subsidiaries,”

including TikTok. Id. at 48637–38. The President also separately ordered ByteDance to divest

itself of TikTok’s U.S. operations, including any interest it might have in U.S. user data. See

Regarding the Acquisition of Musical.ly by ByteDance Ltd., 85 Fed. Reg. 51297 (Aug. 14, 2020)

(“Divestment Order”).

Acting pursuant to the TikTok Order, on September 18, 2020, the Secretary of Commerce

published a list of five sets of prohibited transactions. The Secretary later revised the

implementation date for one of prohibitions. As a result, the list now prohibits:

1. Any provision of services, occurring on or after 11:59 p.m. eastern standard time on September 27, 2020, to distribute or maintain the TikTok mobile application, constituent code, or application updates through an online mobile application store[;]

2. Any provision of internet hosting services, occurring on or after 11:59 p.m. eastern standard time on November 12, 2020, enabling the functioning or optimization of the TikTok mobile application[;]

3. Any provision of content delivery network services, occurring on or after 11:59 p.m. eastern standard time on November 12, 2020, enabling the functioning or optimization of the TikTok mobile application[;]

4. Any provision of directly contracted or arranged internet transit or peering services, occurring on or after 11:59 p.m. eastern standard time on November 12, 2020, enabling the functioning or optimization of the TikTok mobile application[; and]

5.

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