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Sen. Pete Ricketts, R-Neb., joins \u2018Varney & Co.\u2019 to discuss concerns over TikTok data security, mounting pressure on Iran and the fight to keep the government open.<\/p>\n
President Donald Trump and Attorney General Pam Bondi on Thursday were sued over their handling of the TikTok deal that was finalized in January, according to a petition filed by two shareholders in competing tech firms.<\/p>\n
The plaintiffs argued that Trump approved a joint venture that failed to fully sever the app\u2019s operational ties to China, granted several unlawful extensions and that Bondi failed to\u00a0investigate the alleged breaches as required by the\u00a0Protecting Americans from Foreign Adversary Controlled Applications (PAFACA)\u00a0Act, which mandated TikTok to divest from its Chinese parent company, ByteDance, by early 2025.<\/p>\n
The petition was filed by Zhaocheng Anthony Tan, a shareholder in Alphabet, and Garrett Reid, a shareholder in Meta Platforms, who said the TikTok deal also led to declines in Meta and Google stock.<\/p>\n
“For the law to mean something, it must be followed, even\u2014perhaps especially\u2014by the President,” the lawsuit, filed by the Public Integrity Project, stated. “Respondents have violated the statute and subverted the will of Congress. Petitioners bring this case to ensure that such violations, and such subversion, do not continue.”<\/p>\n
TIKTOK AVOIDS US BAN BY FINALIZING HISTORIC TRUMP-BACKED AMERICAN MAJORITY OWNERSHIP DEAL<\/p>\n
Trump in January backed the launch of The Joint Venture LLC, a seven-member majority-American board that enabled TikTok to keep operating in the U.S. (Getty Images)<\/p>\n
Under the current agreement, TikTok was spun off into a separate U.S.-owned entity to remain operational in the country, satisfying an\u00a0executive order issued by Trump on Sept. 25 of last year. The majority American-owned joint venture gives U.S. entities an 80.1% stake, while parent company ByteDance retains 19.9%.<\/p>\n
“In short, under the announced deal, ByteDance would still control all the essential elements of TikTok,” the lawsuit said. “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, exactly the harm that the law was intended to prevent.”<\/p>\n
TIKTOK REACHES AGREEMENTS ON NEW US JOINT VENTURE WITH CLOSING SET FOR 2026<\/p>\n
Attorney General Pam Bondi conducts a news conference at the Department of Justice on Thursday, Dec. 4, 2025. (Tom Williams\/CQ-Roll Call, Inc via Getty Images)<\/p>\n
According to the lawsuit, the American entity of TikTok does not actually own the app\u2019s algorithm but instead collaborates with ByteDance, violating the statutory ban on algorithmic cooperation. While ByteDance retains ownership and licensing of the algorithm, TikTok U.S. will only “retrain, test, and update” it using U.S. user data.<\/p>\n
The U.S. entity\u2019s budget, legal compliance and commercial activity will also be overseen by ByteDance CEO Shou Chew, who will sit on the board of directors for TikTok U.S., creating another operational relationship that the lawsuit alleges is prohibited.<\/p>\n
The petition further alleges that Trump violated PAFACA, which allows the president to grant only a one-time extension of no more than 90 days, and only with the necessary certifications to Congress. Trump reportedly approved five separate extensions \u2014 lasting 75, 75, 90, 90, and 120 days \u2014 far exceeding the statutory limit.<\/p>\n
The petition alleges that Trump unlawfully directed Bondi not to investigate or enforce any violations of PAFACA, in direct violation of the act.<\/p>\n
Shou Zi Chew (C), the CEO of TikTok, arrives to attend Donald Trump’s inauguration as the next U.S. president in the rotunda of the U.S. Capitol in Washington, D.C., on Jan. 20, 2025. (Shawn Thew\/POOL\/AFP via Getty Images)<\/p>\n
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The lawsuit claims that Trump\u2019s actions financially harmed investors in TikTok\u2019s competitors. The plaintiffs noted that when the deal was made in January, Alphabet’s stock immediately dropped from $330.84 to $328.43.<\/p>\n
Similarly, Meta stock fell from $760.66 to $748.91 during the initial framework announcement in September 2025, as it became apparent that the law might not be enforced.<\/p>\n
#Trump #Bondi #sued #shareholders #alleged #TikTok #deal #law #violations<\/p>\n","protected":false},"excerpt":{"rendered":"
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