The future of TikTok in the U.S. hangs in the balance as the Senate passed a bill that could potentially lead to a ban on the popular social media platform if its Chinese owner, ByteDance, doesn’t sell its stake within a year. The bill, which also includes $95 billion in foreign aid to Ukraine, Israel, and other allies, has already been approved by the House and is set to be signed by President Biden.
Lawmakers have expressed concerns about TikTok’s ties to China, fearing that the Chinese government could access personal data of millions of U.S. users. Despite TikTok’s efforts to rally its users against the bill, the legislation has moved forward, prompting the platform to criticize lawmakers for using foreign aid as a cover for pushing through a ban that would impact millions of Americans and businesses.
If ByteDance fails to sell TikTok, the app could face a shutdown in the U.S. Lawmakers are worried about the national security risks posed by allowing a Chinese-owned platform to access personal data of American users. Potential buyers for TikTok include Microsoft, Oracle, and private equity groups, but the sale could be complicated if ByteDance retains control of the core algorithms that power the app’s video recommendations.
Rivals like Meta could benefit from TikTok’s potential ban, with estimates suggesting that a significant portion of TikTok users could shift to platforms like Instagram and Facebook. As the fate of TikTok hangs in the balance, the tech industry and social media landscape could see significant shifts in the coming months.