U.S. Advances Bill to Ban TikTok Unless ByteDance Divests

Business07/03/2024Mr. SmithMr. Smith
1 tiktok
TikTok CEO Shou Zi Chew speaks during a Senate Judiciary Committee hearing with other social media platform heads on Capitol Hill in Washington, Wednesday, Jan. 31, 2024, to discuss child safety online. Jose Luis Magana/AP

Key Points:

  • House Energy and Commerce Committee unanimously approves bill to ban TikTok from US app stores unless parent company ByteDance divests.
  • Legislation reflects bipartisan concern over national security risks associated with TikTok's China-linked parent company.
  • Bill aims to prevent TikTok from operating in the US unless divestment occurs within 165 days, potentially impacting other apps controlled by foreign adversary companies.

On Thursday, the House Energy and Commerce Committee advanced a bill that could effectively ban TikTok from US app stores unless its parent company, ByteDance, divests the platform. The measure, passed unanimously, underscores bipartisan efforts to address national security concerns surrounding the popular social media app.

The proposed legislation would compel TikTok's removal from US app stores unless it is swiftly separated from its China-linked parent company, ByteDance. With approximately 170 million American users, TikTok has come under increasing scrutiny over potential risks associated with its ownership.

If enacted, the bill would provide ByteDance with 165 days—just over five months—to divest TikTok. Failure to comply within this timeframe would render TikTok unavailable for download through major app store operators like Apple and Google. The legislation also considers imposing similar restrictions on other apps controlled by foreign adversaries.

The move represents one of the most aggressive legislative actions taken against TikTok by a congressional committee since the company's CEO, Shou Chew, testified last year that the app posed no threat to American users.

Chair of the committee, Republican Rep. Cathy McMorris Rodgers, emphasized the bill's significance in safeguarding American values and freedom, stating, "Today, we will take the first step in creating long-overdue laws to protect Americans from the threat posed by apps controlled by our adversaries."

The legislation, introduced earlier in the week with bipartisan support, has garnered backing from the White House and House Speaker Mike Johnson. However, its fate in the Senate remains uncertain.

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