TikTok Facing Ban in the US
TikTok’s Chinese owner Bytedance has been given an ultimatum by the United States Senate – either sell its stakes or face a ban in the United States.
Legislation Passed by US Senate
The United States Senate passed a controversial bill that could result in the banning of TikTok in the country if it remains under its Chinese parent company ByteDance.
Timeline for Compliance
Bytedance has six months to sell its stake in TikTok or risk the application being banned in the United States.
Approval Process
If the bill is signed into law by President Joe Biden, ByteDance will need approval from Chinese officials to proceed with the forced sale, a move opposed by China.
Reasons for the Ban
US lawmakers are concerned about data sharing between TikTok or ByteDance and the Chinese government, potentially putting the data of millions of US users at risk.
Response from TikTok
TikTok expressed disappointment in the lawmakers’ actions and highlighted the impact of the ban on free speech rights and the US economy.
Endgame Clock
After the bill is signed, ByteDance has 270 days to sell TikTok, with a possible 90-day extension if needed for finalizing deals.
Biden Administration’s Stance
President Biden has indicated his support for the bill and plans to sign it into law promptly.
Potential Buyers
Microsoft, Oracle, and private equity groups are among the likely bidders for TikTok, with complex considerations regarding the sale of core algorithms.
Impact on Social Media Landscape
If the ban is enforced, TikTok’s competitors like Meta are expected to benefit, with a significant portion of TikTok users potentially migrating to platforms like Instagram and Facebook.