Categories: Finance

Senate approves bill requiring TikTok’s parent company to sell or risk ban, sends to Biden for approval

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The Senate passed legislation on Tuesday that would require TikTok’s China-based parent company, ByteDance, to sell the popular social media platform or face a ban in the United States. The bill was included in a larger $95 billion foreign aid package and passed with a vote of 79-18, heading to President Joe Biden for his signature.

The legislation gives ByteDance nine months to sell TikTok, with a possible three-month extension if a sale is in progress. It also prohibits the company from controlling TikTok’s algorithm, which is a key feature of the app.

Lawmakers have long expressed concerns over Chinese influence and potential threats posed by TikTok, which is used by 170 million Americans. The bill aims to prevent foreign adversaries from conducting espionage and harming U.S. citizens.

Opponents of the bill argue that a comprehensive federal data privacy law would be a better way to protect consumers. They also question the urgency of the threat posed by TikTok and the potential impact on free speech and consumer privacy.

TikTok has vowed to challenge the legislation in court, signaling a potential legal battle ahead. The company has previously succeeded in court challenges against attempts to ban the app, including a lawsuit against a Montana law and an executive order by former President Donald Trump.

As the future of TikTok hangs in the balance, content creators who rely on the platform for income have been vocal in their opposition to the legislation. They argue that TikTok is a safe platform for users and have gathered in front of the Capitol building to protest the bill.

The passage of this legislation marks a significant development in the ongoing debate over TikTok’s ownership and potential security risks, setting the stage for a potential showdown between the U.S. government and ByteDance.

Team@GQN.

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