TikTok Ban Blocked: Second Federal Judge Rules Against Trump Administration

A further federal judge has issued a preliminary injunction against U.S. governmental restrictions that would have essentially prevented TikTok from functioning within the United States.

The decision (displayed below) was delivered by U.S. District Court Judge Carl Nichols in a legal case initiated by TikTok and ByteDance against President Donald Trump, Secretary of Commerce Wilbur Ross, and the Commerce Department. Judge Nichols stated the government “probably went beyond the explicit boundaries of IEEPA [the International Emergency Economic Powers Act] as a component of agency action that was arbitrary and without reason.”

This marks the second instance of a federal judge issuing an injunction against restrictions from the Trump administration that would have prohibited U.S. firms, including internet service providers, from engaging in business with TikTok and ByteDance. The initial injunction was granted in October by U.S. District Court Judge Wendy Beetlestone, in a separate lawsuit filed by three TikTok content creators against President Trump and the U.S. Commerce Department.

Both legal challenges concern an executive order signed by President Trump on August 7, which banned transactions with ByteDance. The order referenced both the IEEPA and the National Emergencies Act, asserting that TikTok presented a national security risk due to its ownership by a Chinese entity.

In the current ruling, Judge Nichols explained that TikTok and ByteDance are likely to prevail in their argument that Secretary Ross’ prohibitions concerning TikTok and ByteDance, originally scheduled to take effect on November 12, likely infringed upon limitations within the IEEPA and the Administrative Procedures Act.

The Commerce Department previously announced last month that it would adhere to Judge Beetlestone’s injunction while awaiting further legal proceedings.

ByteDance is also confronting a divestiture order that would require it to sell TikTok’s U.S. assets. While a tentative agreement has been reached with Oracle and Walmart, ByteDance also requested the federal appeals court to overturn the order last month. On November 26, the Trump administration extended the order’s deadline to December 4, but allowed it to expire without establishing a new one.

In a statement sent to TechCrunch, a TikTok representative conveyed, “We are pleased the court concurred with our position and issued a preliminary injunction against all the prohibitions of the Executive Order. We remain dedicated to developing TikTok as a platform utilized by 100 million Americans, including families and small businesses, for self-expression, connection, economic opportunity, and enjoyment.”

A spokesperson for the U.S. Commerce Department stated, “The Department maintains the [executive order] is entirely consistent with the law and safeguards legitimate national security interests. The Government will continue to abide by the injunctions and has taken immediate action to do so, but intends to strongly defend the [executive order] and the Secretary’s implementation efforts against legal challenges.”

To monitor the frequently intersecting developments in ByteDance and TikTok’s dispute with the U.S. government, we have assembled a detailed timeline and will continue to update it.

TikTok vs Trump Injunction by TechCrunch on Scribd