TikTok owner ByteDance said Friday that it will pursue "all legal remedies available" in response to President Donald Trump's decision to ban the video-sharing app from operating in the United States.
TikTok said the Trump's decision, revealed in two separate Executive Orders issued late Thursday, "paid no attention to facts" and accused the President of trying to insert himself into the sale negotiations with Microsoft Corp. (MSFT) - Get Report.
Trump issued Executive Orders late Thursday that bar "U.S. transactions" with China-based social media apps WeChat and TikTok, citing "significant risks" to personal data and digital security.
"TikTok ... automatically captures vast swaths of information from its users," the Order read. "This data collection threatens to allow the Chinese Communist Party access to 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."
"Like TikTok, WeChat automatically captures vast swaths of information from its users," a second Order said. "This data collection threatens to allow the Chinese Communist Party access to Americans’ personal and proprietary information. In addition, the application captures the personal and proprietary information of Chinese nationals visiting the United States, thereby allowing the Chinese Communist Party a mechanism for keeping tabs on Chinese citizens who may be enjoying the benefits of a free society for the first time in their lives."
The decision, which will be challenged by owners Tencent Holdings and ByteDance, will come into effect in mid-September, around the same time Microsoft is expected to either complete its purchase of TikTok -- which some analysts say could be worth $50 billion -- or walk away from a transaction that was essentially forced by the White House.
China also vowed to hit back at President Trump's Executive Order, calling it a case of "using state power to oppress non-American businesses."
Tencent shares were pummeled in Asia trading, falling more than 5% in Hong Kong and shedding more than $35 billion in value following the potential ban, which also weighed on stocks in the region and boosted the value of the U.S. dollar.