The US House of Representatives has approved a bill that would require TikTok owner ByteDance to sell its platform or face an outright ban in the US.
Under the new law, ByteDance is given an ultimatum to sell control of TikTok within six months or lose its 150 million users in the United States.
why do we care? A ban on TikTok in the US will have a major impact on advertisers, especially those targeting Gen Z. This demographic favors his TikTok over platforms like Google, making it an important channel for advertisers looking to reach this demographic.
Security concerns. The vote was taken to address concerns related to national security surrounding TikTok's ownership. The app is owned by Beijing-based ByteDance and is therefore subject to China's controversial cybersecurity laws. These laws include provisions that could potentially require TikTok to hand over U.S. user data to the Chinese Communist Party upon request.
Next step. If the bill passes the Senate, President Joe Biden has promised to sign it, potentially escalating tensions with China. He said ByteDance would need China's permission to sell TikTok, but China opposes any forced sale.China warns the move could have negative consequences for the US
Will TikTok be banned? Former President Donald Trump, who had previously called for a ban on TikTok, is speaking out in the Senate after meeting with Republican donor Jeff Yass, a major ByteDance stakeholder, to oppose the ban. The fate of the bill remains unclear. Mr. Trump's stance has won support from some members of Congress, but some Democrats are also pushing back against the app's younger users as the party seeks to maintain its influence among younger voters. They oppose the ban because they fear it will alienate people from other countries.
What the Senate is saying. Despite the division in Congress, Democratic Chairman Mark Warner and Republican Chairman Marco Rubio of the Senate Intelligence Committee welcomed the House vote. They said in a statement:
- “We are united in our concern about the national security threat posed by TikTok. TikTok is a platform with tremendous power to influence and divide Americans, and its parent company ByteDance remains at the behest of the Chinese Communist Party. You are legally required to comply.”
- “We are encouraged by the strong bipartisan vote in the House today and look forward to working together to move this bill through the Senate and signed into law.”
What China is saying. Foreign Ministry spokesperson Wang Wenbin said the move “will hurt the United States.” he added:
- “The United States has never found any evidence that TikTok threatens U.S. national security, but it has not stopped suppressing TikTok.”
- “This type of bullying behavior, which cannot be won through fair competition, disrupts the normal business activities of enterprises, undermines international investors' confidence in the investment environment, and undermines the normal international economic and trade order.”
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What TikTok is saying. TikTok has accused a US senator of staging a “predetermined” vote to ban the platform in the US. The platform said in a statement:
- “This law… [was] The predetermined outcome is a total ban on TikTok in the United States. The government is trying to strip 170 million Americans of their constitutional right to free expression. ”
- “This will harm millions of businesses, deny audiences to artists, and destroy the livelihoods of countless creators across the country.”
