TikTok Prepares for US Divestment or Ban Legislation, Anticipating a New Legal Battle

After years of battling to prove that TikTok is not a threat to national security, the popular social media app is facing a potential ban in the United States. The US House of Representatives has fast-tracked legislation that would require TikTok’s Chinese parent company, ByteDance Ltd., to divest its ownership stake in the app as part of a crucial aid package for Ukraine and Israel. The Senate is expected to vote on the bill soon, with President Joe Biden indicating he will sign it promptly.

ByteDance has vowed to fight the legislation in court and exhaust all legal challenges before considering any divestiture. In response, TikTok has mobilized its tens of millions of users to pressure lawmakers, urging them to “Stop the TikTok ban” through in-app banners and calls to action.

Despite years of lobbying efforts and assurances that user data is protected, TikTok’s failure to sway lawmakers has led to the impending legislation. The company has argued that the bill would violate the First Amendment and highlighted its substantial investment in data privacy measures.

The legislation, which passed in the House with a significant majority, also includes provisions to restrict data brokers selling information to foreign adversaries and authorize the confiscation of frozen Russian assets to aid Ukraine. Supporters of the bill believe it is necessary to protect Americans, especially children, from potential Chinese propaganda on the app.

TikTok’s rise to popularity during the pandemic has been met with scrutiny over its ties to China, leading to multiple attempts to ban the app. The current legislation gives ByteDance nearly a year to divest from TikTok, with a possibility of a presidential waiver for the initial 90 days. The extended deadline aims to prevent any disruption before the upcoming election, despite concerns about potential foreign interference.