Rising Uncertainty for TikTok in the US due to Proposed Legislation

This article was last updated on March 13, 2024

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A Revived Threat to TikTok’s US Future

The potential destiny of the renowned app TikTok in the United States is back in the ring of uncertainty. This marks the third incidence in four years where lawmakers are pushing for the mobile application to be prohibited. Despite it still being in the early stages, the severity of the recent effort cannot be understated.

This tumult has been sparked by a bill set to be reviewed by the House of Representatives. The legislation is predicted to be approved, and if it is, could distress the approximately 170 million US TikTok users. It could also indirectly impact followers of American TikTokers around the globe, including those in the Netherlands.

TikTok, an application developed in China, has triggered significant suspicion in the American landscape over the years. Concerns arise that sensitive user data could potentially be funneled into the hands of the Chinese government via the app. Additionally, fears linger that China could employ TikTok’s algorithm to influence political sentiments in the US, particularly towards elections. TikTok has always denied any involvement in such activities.

The Proposed Forced Sale of TikTok

Under the terms of the proposed legislation, ByteDance, the parent company of TikTok, would be compelled to sell the app. Failure to do so would lead to the app being eliminated from the Apple and Google’s app stores. Furthermore, hosting providers would be mandated to cease providing services to TikTok, signifying the app’s death knell in the US.

TikTok, responding to the legislation, brands it as a “blatant ban,” warning that it restricts freedom of speech. The CEO, Shou Chew, who had a pre-scheduled visit to Washington, is attempting to salvage whatever is left.

According to The Wall Street Journal, TikTok’s American management was caught off guard by this predicament. Two weeks prior, they concluded the threat of a ban had subsided, aware of the bill but not anticipating the extensive backing it ultimately received. TikTok has since solicited its 170 million American users twice to reach out to their Congress representative.

Interestingly, the TikTok issue has bipartisan support—an unusual occurrence. Democrats and Republicans typically have opposing views on legislative matters. Not only does the bill have widespread support from both parties, but President Biden also favors it. “If the proposal passes, I will sign it,” he stated last weekend.

However, it is noteworthy that TikTok is also a key campaign tool for Biden—used mainly to attract young voters. His campaign team began an account on TikTok last month, which already boasts nearly a quarter of a million followers.

Surprisingly, Trump opposes the ban, even though he sparked hysteria in August 2020 by announcing a prospective app ban, which eventually fell flat in court. Rumor suggests his current stand may be influenced by Republican megadonor and major ByteDance investor, Jeff Yass. Trump denies any dealings with Yass regarding TikTok.

A First-Time Scenario

Following the House of Representatives’ vote, the Senate must also concur. However, the tide there is less predictable, with critical voices starting to rise. Approving the ban may turn out to be TikTok’s saving grace. If the Senate agrees, Biden can ratify the bill—a first-time occurrence where such a globally influential app is forced into sale or closure.

Alternatively, ByteDance could decide to sell TikTok, but the likelihood of this currently seeming plausible is uncertain. However, this may become a more viable option if the Senate also passes the legislation. Complicating the matter, since 2020, any such sale would require Beijing’s permission. Whether that permission would be granted is dubious.

A legal showdown between TikTok and the US government is expected. It is plausible that TikTok may request a postponement of the ban while the case is in progress, effectively securing additional time.

The Situation in the EU

In the EU, the debate about TikTok was a major issue last spring, but a total ban was never on the table. However, EU institutions, including the European Commission, have banned officials from having the app on their work devices. A source in Brussels states that there are currently no reports from the Member States or the European Commission considering such a ban.