24/04/2024
Paolo Munar

TikTok Faces Countdown: ByteDance Must Divest Within Nine Months or Risk Ban in the US

Introduction

TikTok’s parent company, ByteDance, has been asked to divest into the short videos app within nine months or risk being banned in the U.S. after President Joe Biden signed a bill into law.

The Divest-or-Ban Bill Becomes Law

The TikTok divest-or-ban bill was included in a $95 billion foreign aid package signed by President Biden on Wednesday morning. The bill does not immediately ban TikTok but sets a strict time limit for ByteDance to sell the app. If ByteDance does not divest within the specified period, TikTok will be removed from the Apple App Store and effectively banned in the United States.

Political Maneuvering and Extended Deadlines

Initially, when the legislation was passed as a separate bill in the House, it encountered difficulties in the Senate. However, thanks to political maneuvering, it was placed on President Biden's desk. To force the Senate to consider the two measures together, the House combined the TikTok bill with foreign aid to allies of the United States. The revised bill also extended the divestment timeline from six to nine months, garring support from lawmakers previously on the fence.

TikTok's Response and Legal Battle Ahead

TikTok's spokesperson, Alex Haurek, announced that the company intends to challenge the law in court. Legal battles could extend the period if courts delay enforcement until a resolution is reached. In addition, the question of how China will react remains. Is TikTok to be sold by ByteDance, including its sought-after algorithm that ensures users are engaged?

The CEO of TikTok, Shou Chew, made it clear in a video posted on the site that this is indeed a ban, rejecting the argument that legislators merely want to remove the platform from China's ownership. He stated, "Make no mistake, this is a ban. A ban on TikTok is a ban on you and your voice."

Implications for Millions of Users and Businesses

TikTok is facing a critical moment as the clock begins to run out. Seven million businesses and 170 million Americans using the app may be affected by this situation. It is still unclear whether TikTok will survive such a judicial challenge, but its impact on the world of Social Media remains clear. This possible ban on TikTok shows the Government’s outreach and power to ban any app for any reason. 

Back to articles