House lawmakers have passed legislation that could result in a nationwide TikTok ban, posing a significant threat to the company’s US operations. If the proposal moves forward, TikTok may need to find a new owner or face being banned in the United States. The bill, which was included in a larger foreign aid package, would give TikTok approximately nine months to sell, with a potential extension by the White House. Lawmakers, including previously skeptical ones, are now supporting the bill, making its passage through the Senate likely.
If the Senate votes to approve the TikTok legislation, it will be sent to President Joe Biden for final approval. Biden previously endorsed a similar bill, indicating that he may sign the measure into law. From that point, TikTok would have 270 days to find a buyer and separate from its Chinese parent company, ByteDance. Should TikTok fail to comply, users may face being cut off from the app. While TikTok fans can currently continue using the app, they may start to see more opposition to the legislation from creators or the company itself.
In addition to complying with the legislation, TikTok could challenge it in court, as its CEO has vowed to continue fighting the bill legally. TikTok and various civil society groups have criticized the legislation as unconstitutional, arguing that it violates users’ First Amendment rights. Experts suggest that a bill leading to the censorship of TikTok users could be struck down by the courts, though the impact of recent updates on the bill’s constitutionality remains uncertain. A court challenge could result in a temporary block of the legislation during the litigation process.
One major hurdle for TikTok in complying with a forced sale is the role of the Chinese government, which has voiced opposition to such a move. China has implemented export controls involving algorithms, potentially impacting TikTok’s recommendation engine. If China refuses to allow ByteDance to relinquish TikTok’s algorithm, it could block the sale altogether or permit it without the algorithm. The absence of TikTok’s algorithm could present a significant challenge for the company, as it is a key factor in the app’s popularity. The outcome of a forced sale without the algorithm remains uncertain for TikTok’s future success.
