As widely anticipated, US House lawmakers have approved a bill that could potentially prohibit TikTok usage within the US. According to the bill’s provisions, the app’s owner ByteDance will be required to divest from TikTok within five months.
Following its passage in Congress, President Joe Biden signed the law that forces ByteDance to find a buyer for TikTok. However, the latter has sued the US government, claiming that it limits expression of freedom.
TikTok has taken legal action against the US government to halt the implementation of a law mandating the sale of the social media platform due to its Chinese ownership or face a ban. The appeal asserts that the law represents an “unprecedented violation” of the First Amendment of the Constitution, which guarantees freedom of expression.
Signed by President Biden on April 24, the law grants ByteDance, TikTok’s parent company, nine months to divest, with a potential three-month extension at the discretion of the president. However, the filing of the appeal effectively halts the countdown, potentially prolonging the timeline before any ban can take effect.
TikTok, a behemoth in video-sharing social networks, has achieved remarkable growth since its inception, firmly establishing itself among the most popular apps. While its commercial significance and appeal to consumer engagement are evident, the challenge for brands lies in how to leverage TikTok’s distinct potential effectively.
It has disrupted the music industry, made niches famous, and has a popular appeal among young people. With over 148 million monthly active users in the US alone, TikTok reaches a vast segment of the population, particularly Gen Z. This translates to significant influence. Users spend a staggering amount of time on the app, exceeding 4 billion minutes daily. This deep engagement makes it a prime platform for shaping trends and capturing attention.
From launching viral dances to influencing fashion and music trends, TikTok sets the cultural pace for many. It can even impact news cycles and social movements. And as the highest-grossing app of 2023, TikTok holds immense economic sway. Businesses leverage it for marketing, and creators can earn substantial income.
On Wednesday, March 13, 2024, the US House voted to pass a bill that could potentially result in a nationwide ban on TikTok. The vote poses a significant challenge to one of the world’s most popular social media platforms.
The bill seeks to prohibit TikTok from US app stores unless the platform is separated from its Chinese parent company, ByteDance. The bill’s fate in the Senate remains uncertain at this time.
Supporters of the bill argue that TikTok poses a national security threat due to concerns that the Chinese government could leverage its intelligence laws to compel ByteDance to disclose the data of US app users
TikTok contends that the legislation constitutes an assault on the First Amendment rights of its users and encourages them to voice their opposition by contacting their representatives in Washington. China’s foreign ministry has expressed strong displeasure at the impending vote, denouncing it as an “act of bullying.”
President Joe Biden signed the bill, officially known as the “Protecting Americans from Foreign Adversary Controlled Applications Act.” His signing turned the bill into law.
The bill mandates ByteDance, TikTok’s parent company, to sell the app within 180 days. Otherwise, it may face removal from the Apple and Google app stores in the US. Additionally, it grants the president authority to label other applications as national security threats. This only if they are controlled by a country adversarial to the US.
The renewed effort by Washington against TikTok took the company by surprise, as reported by the Wall Street Journal. TikTok executives felt reassured when President Biden joined the app last month as part of his re-election campaign.
If ByteDance were seeking a buyer, Bobby Kotick, former CEO of Activision Blizzard, might be an option. WSJ said during a dinner during the Allen & Co. conference, Kotick discussed seeking partners to acquire TikTok He’d plan to purchase the app only if the law was approved and ByteDance chose to sell. Sam Altman, CEO of OpenAI, was also present at the event.
But the issues in the US may not be the only legal case that TikTok is going to face. In mid-February, in fact, the European Commission initiated an investigation into the video app for suspected violations of EU regulations concerning child protection and advertising transparency.