President Joe Biden has put his signature on a bill that could lead to the prohibition of TikTok in the United States. This move comes amidst concerns regarding the security of user data and the platform’s ties to China. The legislation, passed by the Senate and previously approved by the House, includes provisions that would require TikTok’s Chinese owner, ByteDance, to sell off its stake in the popular social media service within a year.
For years, the possibility of a TikTok ban has been under consideration by the U.S. government. The bill, which has been in the works since before March, does not enact an immediate ban. Instead, it gives TikTok nine months to sell to a U.S.-approved owner or face prohibition. TikTok CEO Shou Chew has stated that the company intends to contest the decision in court.
Concerns about TikTok stem not only from the addictive nature of its content but also from worries about data security. Lawmakers fear that TikTok could potentially share sensitive personal information about its 170 million American users with the Chinese government, posing a significant national security risk.
Efforts by TikTok to sway lawmakers against the bill’s passage have proven unsuccessful. Despite urging its users to contact legislators, TikTok has faced criticism for its lobbying tactics. Eurasia Group director Clayton Allen noted that these efforts may have even backfired.
TikTok has strongly opposed the legislation, labeling it as unconstitutional and a violation of free speech rights. In an internal memo, TikTok executive Michael Beckerman vowed to pursue a legal case once the bill is signed into law.
The bill’s timeline gives ByteDance nine months to arrange a sale, with a potential three-month grace period. However, this timeline could coincide with the U.S. presidential inauguration, potentially influencing the actions of the next administration. Analysts speculate that potential buyers could include tech giants like Microsoft or Oracle, along with private equity groups.
The sale of TikTok, if it were to occur, raises questions about the fate of its core algorithms, which are integral to the platform’s functionality. Without these algorithms, the value of TikTok could be significantly diminished, complicating the divestiture process.
The potential ban on TikTok could benefit rival social media platforms like Meta, which owns Instagram and Facebook. Analysts estimate that a substantial portion of TikTok users would migrate to these platforms in the event of a ban, along with potential gains for Google.
As the future of TikTok remains uncertain, the legislation prompts broader considerations about data privacy, national security, and social media regulation in today’s digital era.
