The House has passed legislation that would force ByteDance, the parent company of TikTok, to divest from the popular social media platform to avoid a ban in the United States. The bill, included in a package of bills aimed at providing aid to Ukraine and Israel, gives ByteDance nine months to sell TikTok, with a possible three-month extension if a sale is in progress. The legislation also prohibits ByteDance from controlling TikTok’s key algorithm that feeds users videos based on their interests.
Lawmakers have expressed concerns over TikTok due to fears that Chinese authorities could compel ByteDance to hand over data on the 170 million Americans who use the platform. Opponents of the bill argue that the Chinese government could obtain information on Americans through other means, such as commercial data brokers. The legislation faces bipartisan support in the Senate, but some lawmakers oppose it on the grounds that it sets a dangerous precedent and infringes on free speech rights.
TikTok has launched a lobbying effort against the bill, spending millions on TV ads in battleground states and emphasizing its investments in data safety. The company argues that a ban would harm millions of businesses and stifle free speech rights. While potential buyers for TikTok’s U.S. business exist, challenges remain, including regulatory hurdles and opposition from both the U.S. and China. If the legislation becomes law, it could make TikTok more affordable to purchase, but buyers may need to rebuild key components of the app due to Chinese restrictions on algorithm exports.
