Why TikTok rivals aren't challenging Trump's executive order
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When President Trump issued his executive order to not enforce the TikTok ban for 75 days, it seemed to be in violation of the divestiture law's letter and intent.
- But so far no one has sued, even though courts have been inundated with complaints over many of Trump's other executive orders.
Why it matters: The lack of litigation may give Trump more incentive to further extend TikTok's life, even if a viable deal is not yet in hand.
Zoom in: The most obvious plaintiffs would be TikTok's rivals, such as Meta or Snap. The risk, however, outweigh the possible reward.
- Social media competitors are worried that a successful TikTok ban in the U.S., particularly one rooted in questionable national security arguments, could give cover to other governments that would like to ban social media apps in their countries.
- Suing also may spark a backlash, eviscerating any user adoption gains.
Behind the scenes: Legislators who supported the divestiture bill have also remained (mostly) silent.
- Republicans due to their steady obsequience to Trump. Democrats because they have bigger fish to fry.
- And members both parties are understandably worried about how voters would react. It's one thing to vote for a bill, and quite another to loudly insist upon its enforcement.
State of play: Oracle reportedly has emerged as a player in the divestiture process, but seemingly as a tech partner that might also take a minority stake.
- Yes, this is the same Oracle whose "Project Texas" work with TikTok was either brushed off or outright insulted by some Congresspeople during a public hearing with TikTok's CEO.
- Also the same Oracle that was part of a 2020 proposal, hyped by Trump, that ultimately went nowhere.
Look ahead: The current extension expires on April 5. Don't be surprised if Beijing and Washington use this impasse as a bargaining chip in tariff talks.
