Sweeping through the halls of the Capitol building, the U.S. House of Representatives has approved a pivotal piece of legislation that could ban TikTok across the country. Following intense debate, the bipartisan vote showed strong support for the bill, which provides the social media app's Chinese parent company, ByteDance, with a six-month ultimatum. Within this period, ByteDance must dispense with its controlling interest in TikTok or face a blockade in the vast American market.
Established in 2012 and based in Beijing, ByteDance registers in the Cayman Islands and maintains a presence through offices across Europe and the U.S. During discussions on the bill, legislators voiced their deep-seated apprehensions regarding China's sway over TikTok.
Could TikTok Be Banned Nationwide?
The milestone House decision paves the way for the Senate to take up the bill. Should it pass this next legislative hurdle, President Joe Biden has pledged prompt ratification, setting the stage for a potential clash with China. Foreign Ministry spokesperson Wang Wenbin from China cautioned against such forced divestiture, warning it would adversely affect the United States.
Republican Mike Gallagher of Wisconsin, who assisted in drafting the bill, argued that the national security risks of leaving a prominent news platform in the hands of a company bound to the Chinese Communist Party were unacceptable. Under national security law, Chinese firms might be compelled to furnish government data upon request, escalating worries about privacy and the security app's 150 million American users.
Despite TikTok's efforts to alleviate fears by isolating U.S. user data from ByteDance in China, skepticism persists. High-profile incidents, as reported in January, demonstrated the vulnerability of the supposed data barrier.
Senate Review Awaits Landmark Decision
Hakeem Jeffries, the top Democrat in the House, praised the bill's passage and underscored the need for preventive measures against foreign adversaries' potential abuse of TikTok user data. Senate Majority Leader Chuck Schumer acknowledged the legislation's passage and indicated forthcoming Senate scrutiny.
The platform's future is uncertain against the bill's backdrop as former President Donald Trump, once an advocate for banning TikTok, changed his stance after a notable meeting with Jeff Yass, a Republican donor and minor ByteDance shareholder. Trump's shift has resonated with some House members, such as Marjorie Taylor Greene, who warned of a precedent that may empower Congress to mandate corporate sales under the guise of national security.
Dissent from some Democratic members also echoes concerns over alienating younger voters, a pivotal demographic for the party. However, the bipartisan leaders of the Senate Intelligence Committee, Mark Warner and Marco Rubio, publicly supported the House's decision, reiterating their determination to address the national security threat attributed to TikTok.
After the vote, TikTok's pushback included calls to action for users to lobby their Congressional representatives. This came as no surprise after a similar campaign led to a deluge of calls to congressional offices last week, reportedly solidifying opposition to TikTok among legislators.
Protests outside the White House showcased different perspectives, with advocates like Tiffany Yu underscoring the platform's significance for minority voices. Similarly, content creator Mona Swain expressed concerns over the impact on her livelihood and U.S. businesses.
What's Next for TikTok in the U.S.?
Speculations about potential buyers for TikTok, should ByteDance be forced to sell, animate discussions about the future of the app. Valuation estimates hover around $268 billion, but the financial might and legal anti-monopoly implications may deter potential suitors.
Past interests during the Trump administration's 2020 order for sale witnessed bids from leading U.S. companies. While Microsoft's bid did not succeed, a group including Walmart and Oracle had been in potential contention before that arrangement was dismantled amidst legal challenges and the presidential transition.
Today, TikTok's reach and ad revenue growth cannot be understated. Emarketer's projections put TikTok's U.S. ad revenue for the current year at approximately $8.6 billion, a sharp increase from less than $1 billion in 2020. The app's influence in the digital landscape is evident, but its place in the U.S. tech ecosystem hangs in the balance as lawmakers weigh its fate against national security concerns.
