Biden approves legislation to ban TikTok if ByteDance does not divest the app

President Biden has signed a bill that could potentially ban TikTok in the United States if its Chinese parent company, ByteDance, fails to sell it within a year. The bill, which also includes aid for Ukraine and Israel, was passed by the U.S. Senate in a 79-18 vote late Tuesday after the House passed it with overwhelming majority over the weekend.

Under the terms of the bill, ByteDance has nine months to divest TikTok, with a 90-day extension available to complete a deal. If ByteDance does not sell TikTok, it would become illegal for app stores to distribute the app in the U.S.

TikTok has responded to the news by stating that they will challenge the “unconstitutional law” in court. The company believes that they have invested heavily in keeping U.S. data safe and their platform free from outside influence and manipulation.

TikTok CEO Shou Zi Chew also shared a video response on Wednesday, calling the news “a disappointing moment” and stating that TikTok “will keep fighting.”

This is not the first time TikTok has faced a potential ban. Four years ago, India banned the app following a military conflict with China, leading to the rise of alternative short video platforms like YouTube Shorts and Instagram’s Reels.

TikTok has been arguing that its platform is essential for creators and small businesses in the United States, citing a recent economic impact report that showed TikTok generated $14.7 billion for small to mid-sized companies in the U.S.

The ban on TikTok would have significant implications for the app’s 170 million American users and 7 million businesses that rely on the platform for their livelihood.