US gives parent company TikTok a definitive choice: sell or ban | Tech

US gives parent company TikTok a definitive choice: sell or ban | Tech
US gives parent company TikTok a definitive choice: sell or ban | Tech
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The American approach to TikTok has gained momentum. On Tuesday evening, the Senate passed a law that forces parent company ByteDance to make a choice: sell TikTok to an American company or the app will be banned.

This appears to have cleared the most important hurdle for the new, strict bill. US President Joe Biden has yet to put his signature on it, but he has already promised to do so.

Once the law is passed, ByteDance will have one year to sell TikTok. If that fails, app stores are no longer allowed to offer the app.

Americans are concerned about TikTok’s ties with China. ByteDance is a Chinese company, which means American data could potentially end up in the hands of China. Under a security law, the country may force Chinese companies to hand over internal information.

TikTok itself says it does not store American data in China. The company is based in Singapore. TikTok also previously hammered on the impact of a possible ban of the app on the US economy. “It affects seven million small businesses and an additional 170 million Americans who use our platform,” a spokesperson said last month.

Bill suddenly gained momentum

The American crackdown on TikTok suddenly gained momentum last week. Last month, the House of Representatives passed a bill that would give ByteDance six months to sell TikTok.

The Senate did not immediately make any moves to consider the proposal. Last weekend, the House of Representatives amended the law, which would give ByteDance a year to sell.

The House of Representatives linked the new bill to a vote on an aid package to Ukraine, Israel and Taiwan. As a result, the Senate still had to reach an agreement faster than expected.

Still several hurdles to overcome

But Biden’s signature is not the end of the matter either. According to Bloomberg TikTok has already announced internally that it will go to court if the law passes. Companies and users who largely depend on TikTok for their turnover may follow suit.

The question is also whether these measures against the app are not contrary to the American Constitution. According to experts, a process in which these objections are dealt with could take a long time.

Beeld: Getty Images


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