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TikTok Global Sues ByteDance for $58 Billion Over Alleged Antitrust Violations and "Rigged" Acquisition Deal

Updated: Apr 16



A legal battle between TikTok Global LLC and ByteDance Ltd., the Chinese parent company of TikTok Inc., has erupted into a high-stakes lawsuit alleging antitrust violations, conspiracy, and fraudulent business practices. The Florida-based TikTok Global is seeking no less than $58 billion in damages, accusing ByteDance and its founder, Yiming Zhang, of sabotaging a legitimate acquisition deal to maintain control over TikTok’s U.S. operations.


The Allegations: A "Rigged" Deal and Anticompetitive Practices

According to the lawsuit filed last week on April 3 (Case No. 1:24-cv-23512), TikTok Global claims it was "tricked out of acquiring TikTok Inc." despite submitting two formal buyout offers—first for 33.3billion, then an updated 58 billion proposal on September 24, 2024.


The complaint alleges that ByteDance and Zhang engaged in a "meticulously engineered maneuver, shrouded in subterfuge" to block TikTok Global’s acquisition while publicly appearing to comply with a 2020 U.S. executive order requiring ByteDance to divest TikTok’s U.S. operations due to national security concerns.


"The game was rigged from the start," the lawsuit states, claiming ByteDance had "other plans that circumvented proper procedures, stifled competition, and maintained ByteDance’s control over TikTok’s US operations—all under the guise of compliance with the executive order."

Oracle’s Role: An Alleged "Unlawful Conspiracy"

Instead of accepting TikTok Global’s offers, ByteDance allegedly "suppressed" the deal and pursued an agreement with Oracle, the U.S. tech giant. The lawsuit accuses both companies of "conspiring with cold precision" to undermine competition.


"ByteDance and Oracle engaged in an unlawful conspiracy in violation of Section 1 of the Sherman Act," the filing claims, referring to the U.S. antitrust law prohibiting anticompetitive business practices.

TikTok Global argues that this backdoor deal allowed ByteDance to "erect insurmountable barriers to entry" while maintaining its monopoly over TikTok’s U.S. operations.


Stolen IP and a "Sham" CNBC Broadcast

In a striking accusation, TikTok Global claims ByteDance stole its intellectual property and used it to mislead the public during a live CNBC interview, where executives allegedly presented a "sham" version of TikTok’s corporate structure to derail the acquisition.


What TikTok Global Wants: $58B or Control of U.S. Assets

The lawsuit demands:


  • $58 billion in damages (the value of its revised acquisition offer) or

  • Control of any U.S. TikTok assets if ByteDance is forced to divest due to the looming ban.



Why This Matters for Marketers and Advertisers

For CMOs and advertisers, this lawsuit introduces new uncertainty around TikTok’s U.S. operations:


  • Potential ownership changes could impact ad policies, algorithms, and partnerships.

  • Regulatory scrutiny may intensify, affecting data privacy and ad targeting.

  • Brand safety concerns could arise if legal battles disrupt platform stability.


"This isn’t just a corporate dispute—it’s a fight over who controls one of the most influential ad platforms in the U.S.," said a digital marketing executive familiar with the case. "If TikTok Global wins, we could see a seismic shift in how the platform operates."

What’s Next?

With the U.S. government still pushing for ByteDance’s divestment, this lawsuit adds another layer of complexity. If TikTok Global prevails, advertisers may face a new era of TikTok under American ownership—or ByteDance could retain control, prolonging regulatory battles.


Marketers should monitor developments closely, as the outcome could reshape the social media advertising landscape.


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