A bill giving TikTok’s China-based owner – ByteDance – until January 2025 to sell up or get out of town has sailed through the Senate, the upper chamber of the United States legislature, and looks set to become law, with far-reaching implications.
The landslide vote, split 79 to 18, followed an equally thumping majority in the House of Representatives at the weekend, where the bill was passed after being folded into a wider $95bn package of American aid for Israel, Taiwan and Ukraine, after a previous attempt to push it through stalled. It now heads to the desk of President Biden, who has indicated he means to sign it.
At its core, the law gives ByteDance less than 12 months to sell TikTok to a US-based entity or face being removed from both the Apple App Store and Google Play Store for good.
Both Apple and Google would face financial penalties for non-compliance.
Although, TikTok has not directly commented on the development, it has indicated that it intends to challenge it in court.
Such arguments would likely hinge on how a court interprets the First Amendment of the US Constitution, which protects the right to freedom of speech and prevents Congress from passing laws prohibiting it.
The bill’s passage comes amid a growing freeze in relations between China and the US, and long-held concerns that China’s national security laws appear to give it the right to force ByteDance to give it access to any and all data TikTok holds, something ByteDance has always strenuously denied.
A recent report produced by Oxford Economics, found TikTok drove $15bn of revenue for SMEs in the US alone in 2023, supported an overall contribution of $24.2bn to the country’s gross domestic product (GDP), $5.3bn of tax revenues, and 224,000 jobs.
Speaking ahead of the vote, senator Mark Warner, who chairs the Senate Intelligence Committee, said it was “not hard to imagine” how such a widely used platform could be manipulated by the Chinese state, and while he said he respected the views of TikTok users – 170 million Americans would be impacted – he pointed out that they had not been present for the classified briefings in which politicians were able to delve more deeply into the potential threats posed by Chinese control of TikTok.
“I want to make clear to all Americans, this is not an effort to take your voice away,” said Warner.
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