Biden Signs Law Requiring ByteDance to Sell TikTok in 12 Months
US President Joe Biden has signed a law compelling ByteDance, the Chinese corporation that owns TikTok, to sell its interest in the platform within 12 months.
Failure to comply with the rules could result in a ban on the social media platform in the US. The law, which is part of a comprehensive legislative package including relief for Ukraine and Israel, was passed by the Senate with a vote of 79-18, following a weekend demonstration of strong support in the House.
The law provides ByteDance with nine months to find a buyer for TikTok, with an additional 90-day period available upon completion of the transaction. Failure to do so will result in Google Play and the App Store banning the TikTok app in the United States. This measure is part of concerns about national and data security, linked to ByteDance’s Chinese ties.
TikTok opposes the law, labeling it as “unconstitutional,” and argues that it has invested heavily in US data security. The platform emphasizes that a ban could affect 7 million businesses and 170 million American users, hindering their freedom of expression.
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TikTok’s CEO, Shou Zi Chew, has expressed dissatisfaction and a continued commitment to fighting the ban. The legislative action follows a previous attempt by the House to ban TikTok or force its sale within six months, which the Senate did not advance. The TikTok bill was part of a larger legislative package from the foreign aid sector, likely influencing the Senate’s decision.
Our CEO Shou Chew's response to the TikTok ban: pic.twitter.com/l0RAPJMobK
— TikTok Policy (@TikTokPolicy) April 24, 2024
TikTok released an economic impact report weeks prior, claiming it generated $14.7 billion for small and mid-sized US businesses. The platform has been a key promotional tool for creators and small businesses across the country.
Internationally, TikTok has faced bans due to geopolitical tensions and security concerns. For example, India banned TikTok four years ago after a military conflict with China. This set a precedent for other countries such as Senegal, Nepal, Afghanistan, Somalia, and Iran to also prohibit the service.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
