The U.S. Senate has passed legislation that could potentially lead to the divestment of TikTok’s U.S. assets by its Chinese owner, ByteDance. The bill gives ByteDance about nine months to sell off the popular short-video app or face a nationwide ban. President Joe Biden has indicated that he will sign the bill into law on Wednesday.
Once the bill is signed, ByteDance will have 270 days to divest TikTok. If a deal is close to being finalized near the end of the nine-month period, the president can authorize an additional 90 days for the process. This means that the final decision on the extra three months could fall to either President Biden or potential Republican front runner Donald Trump, depending on the timing.
TikTok is expected to challenge the law by suing to stop it and seeking a preliminary injunction. The company’s lawyers will likely argue for an injunction to allow them to challenge the constitutionality of the law in court. If successful, this could potentially halt the forced sale process and give TikTok more time to operate in the U.S.
Despite these legal challenges, the TikTok app is not expected to change for its 170 million U.S. users in the near future. However, experts suggest that TikTok’s recommendation algorithm may require approval from the Chinese government due to its potential inclusion on a list of technologies that need export approval.
The outcome of this legislation and the ensuing legal battles could have significant implications for TikTok and its millions of users in the United States.