The U.S. Senate has decisively voted to move forward with legislation that will require ByteDance, the Chinese parent company of TikTok, to sell its stake in the social media platform within a year or face a ban in the United States. This legislation is part of a broader aid package for Ukraine and Israel and is expected to be signed into law by President Joe Biden soon.
This move marks a significant escalation in the ongoing U.S.-China trade tensions and represents a serious attempt by the U.S. to mitigate perceived national security risks associated with TikTok, which boasts over 170 million monthly users in the U.S. alone. Critics of the app fear that the Chinese government could leverage its access to user data or manipulate content to influence American public opinion.
The bill allows for a divestiture period of 270 days, extendable to a full year by presidential discretion. This development is likely to set off a flurry of actions both in corporate boardrooms as ByteDance weighs its options, and potentially in courtrooms, as legal challenges to the legislation are anticipated.
Georgetown business professor Stephen Weymouth anticipates that the aggressive stance of the U.S. may provoke responses not only from ByteDance but also from the Chinese government, which has previously expressed strong opposition to forced divestitures. Weymouth also noted the broader implications for U.S. tech policy, which has traditionally been more laissez-faire.
As the bill edges closer to becoming law, TikTok has mobilized its vast user base to lobby against the ban, reflecting the platform's significant cultural and economic footprint. Meanwhile, potential buyers, such as former Treasury Secretary Steven Mnuchin, have expressed interest in acquiring TikTok, though the feasibility of such a sale, particularly involving the app's proprietary algorithms, remains in question due to Chinese regulatory hurdles.
Legal experts predict that the law could face challenges on several fronts, including violations of the First Amendment. The designation of TikTok as a "foreign adversary controlled application" in the legislation could also trigger legal scrutiny under the "bill of attainder" clause, which prohibits laws that single out and punish specific entities without a trial.
As this landmark bill moves to President Biden's desk, the future of TikTok in the U.S. hangs in the balance, with potential impacts on millions of users, creators, and businesses who rely on the platform. The coming months are likely to be marked by strategic decisions, legal battles, and possibly significant changes in the landscape of social media and tech governance.