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The US House of Representatives approved a bill requiring ByteDance, the owner of TikTok, to sell the platform or face a total ban in America.
Under the new legislation, ByteDance has a six-month ultimatum to divest its controlling stake in TikTok or lose its 150 million users in the United States.
Why we care. A US ban on TikTok would have significant consequences for advertisers, especially those targeting Gen Z. This demographic group favors TikTok through platforms such as Google, making it a crucial channel for advertisers looking to reach this target group.
Security issues. The vote was held to address national security concerns surrounding TikTok’s ownership. The app is owned by Beijing-based ByteDance and is therefore subject to China’s controversial cybersecurity laws. These laws include provisions that could potentially require TikTok to hand over U.S. user data to the Chinese Communist Party upon request.
Next steps. If the bill is passed in the Senate, President Joe Biden has promised to sign it, which could lead to tensions with China. ByteDance would need China’s permission to sell TikTok, but China has said it would oppose any forced sale. China warns that this move could have negative consequences for the US
Will TikTok be banned? The fate of the legislation in the upper chamber of Congress remains uncertain as former President Donald Trump, who previously tried to ban TikTok, has now opposed the proposed ban after meeting with Republican donor Jeff Yass, a major stakeholder of ByteDance. Trump’s stance has drawn support from some members of the House of Representatives, while certain Democrats are also against the ban, fearing it would alienate the app’s youthful user base, at a time when the party is looking to expand its influence among younger voters.
What the Senate says. Despite mixed views within Congress, Senate Intelligence Committee leaders Mark Warner, a Democrat, and Marco Rubio, a Republican, welcomed the vote in the House of Representatives. They said in a statement:
- “We are united in our concern about the national security threat posed by TikTok – a platform with enormous power to influence and divide Americans, whose parent company ByteDance remains legally obligated to comply with the wishes of the Chinese Communist Side.”
- “We are encouraged by the strong bipartisan vote in the House of Representatives, and look forward to working together to get this bill passed by the Senate and signed into law.”
What China says. Foreign Ministry spokesman Wang Wenbin said the move would “bite the US.” He added:
- “While the United States has never found evidence that TikTok threatens U.S. national security, it has not stopped suppressing TikTok.”
- “This kind of bullying behavior that cannot win in fair competition disrupts the normal business activities of companies, damages the confidence of international investors in the investment climate and damages the normal international economic and trade order.”
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What TikTok says. TikTok accused US senators organizing a “predetermined” vote to ban the platform in the US The platform said in a statement:
- “This legislation (was) a predetermined outcome: a total ban on TikTok in the United States. The government is trying to deprive 170 million Americans of their constitutional right to free speech.”=”
- “This will damage millions of businesses, deny artists an audience, and destroy the livelihoods of countless creators across the country.”
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