Article Summary –
The US House of Representatives passed a bill demanding that ByteDance, the Chinese tech giant, divest TikTok, otherwise the app would be effectively banned in the US. The legislation, known as the Protecting Americans from Foreign Adversary Controlled Applications Act, was passed in a 352-65 vote and now moves to the Senate. If the bill becomes law, ByteDance would have to divest TikTok within approximately six months for the app to remain available in the US, while app-store owners and internet-hosting companies would be prohibited from supporting TikTok and other apps linked to ByteDance.
US House Passes Bill Threatening TikTok Ban
The US House of Representatives passed a bill on Wednesday that could potentially ban the popular social video app, TikTok, unless Chinese tech giant ByteDance divests its shares. The bill passed with a commanding 352-65 vote.
Named the Protecting Americans from Foreign Adversary Controlled Applications Act, this legislation was introduced on March 5 by Reps. Mike Gallagher (R-Wis.) and Raja Krishnamoorthi (D-Ill.) of the House Select Committee on the Chinese Communist Party. The bill describes TikTok as a national security threat due to its control by a foreign adversary. Its future in the Senate is uncertain as senators appear divided about the legislation, and other efforts to ban TikTok have stalled.
The bill requires ByteDance to divest TikTok within approximately six months for the app to remain available in the US. If the bill is enacted, app-store owners like Apple and Google, along with internet-hosting companies, would be prohibited from supporting TikTok and other apps affiliated with ByteDance.
Lawmakers from both parties have expressed concerns about TikTok’s alleged ties to the Chinese Communist Party (CCP), which TikTok CEO Shou Zi Chew denied during Senate hearings. Meanwhile, organizations such as the American Civil Liberties Union and the Knight Institute have opposed the bill for potentially infringing on First Amendment rights.
Republican presidential nominee Donald Trump expressed concerns this week that banning TikTok would strengthen Facebook parent company Meta. In 2020, the Trump administration sought to remove TikTok from app stores and called on ByteDance to divest the app, citing national security concerns. However, Microsoft’s potential acquisition of TikTok fell through, and the Biden administration eventually revoked the Trump administration’s order.
If the TikTok bill passes, Angelo Zino, a vice president and senior equity analyst at CFRA Research, suggested that TikTok’s US-only business could be valued at over $60 billion. However, ByteDance could choose to cease TikTok’s business in the US if forced to do so.
Regarding the potential TikTok ban, several prominent TikTok creators are exploring other ways to diversify their businesses and brands beyond the platform.
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