TIKTOK FACES POTENTIAL BAN IN U.S. UNLESS BYTEDANCE DIVESTS STAKE

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The U.S. Senate has passed a bill that could lead to the ban of @tiktok in the country unless its Chinese parent company, ByteDance, sells its stake within nine months. President Joe Biden has pledged to sign the bill promptly. ByteDance has not yet commented, but it previously expressed strong opposition to any forced sale. However, approval from Chinese authorities would still be necessary for any potential deal.

The legislation was part of a broader package that included military aid for Ukraine, Israel, Taiwan, and other Indo-Pacific allies. It received significant bipartisan support, with 79 senators in favor and 18 against.

The move to separate TikTok from its Chinese origins stems from concerns that American citizens’ data could be accessible to China. TikTok argues that the bill would harm local economies, limit free speech, and shut down a platform contributing $24 billion annually to the U.S. economy. ByteDance emphasizes that it does not act on behalf of China and is primarily owned by global investors.

CEO Shou Zi Chew has vowed to defend TikTok using legal means. Meanwhile, TikTok has launched a lobbying campaign and encouraged users and creators to protest against the legislation.

Legal expert Carl Tobias predicts that the issue could result in a two-year legal battle, with further delays if no buyer is found for ByteDance’s stake within the specified nine-month period.