The US Congress has passed a bill that forces TikTok’s Chinese parent to sell the video-sharing app to a US firm or risk a ban. TikTok has said it will not give up without a fight. Banasree Purkayastha delves into the reasons behind the US move and who could possibly buy the app.
The US Senate on Tuesday voted to ban viral video app TikTok unless its China-based parent company ByteDance divests its ownership to an American company. The Protecting Americans from Foreign Adversary Controlled Applications Bill is very likely to get President Joe Biden’s nod. Last week the Bill was passed by the US House of Representatives. TikTok gets nine months to find a US buyer, and then a 90-day extension to sign the deal. If ByteDance fails to sell, TikTok will not be able to operate in the US.
As Time pointed out, TikTok is an extremely popular social media app that was not born on American soil, but in China. The attack on TikTok springs from the concerns that the app’s China-based parent company could collect sensitive data on US users and censor content that goes against the Chinese government. Director of National Intelligence Avril Haines told a House of Representatives intelligence committee hearing in March that there are fears Beijing could use the social media app to influence the 2024 US elections.
In response, TikTok’s head of public policy for the Americas, Michael Beckerman, claimed that the Bill violated the first amendment of the US constitution, which protects freedom of speech. TikTok has been calling upon its 170 million US users to oppose the ban, running television ads and promoting the hashtag #KeepTikTok.
A ban on TikTok would impact content creators who depend on the app for their livelihood. An economic impact report by TikTok said the app drove $15 billion in revenue for US small businesses in 2023. ByteDance has been pushing its Lemon8 app as a potential Plan B if TikTok is banned.
TikTok posted revenue of about $16 billion in 2023 in the US. Microsoft, Walmart, and Oracle have shown interest in TikTok in the past, but the question remains whether there would be any buyers for the app without its algorithm if China refuses to allow its sale.