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Home » A bill to ban TikTok just passed the House of Representatives. Here’s what could happen next:
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A bill to ban TikTok just passed the House of Representatives. Here’s what could happen next:

i2wtcBy i2wtcApril 23, 2024No Comments5 Mins Read
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TikTok users may soon find out that the popular social media service will either be under new ownership or banned entirely in the US, although that won’t happen anytime soon.

On Saturday, the House of Representatives passed a bill that: TikTok banned from operating in the US Unless the owner of this popular China-based platform sells its shares within a year. The bill will next go to the Senate, where it is expected to be passed with the help of an attachment to the bill. larger foreign aid package Also for Ukraine, Israel, and other U.S. allies, which have bipartisan support.

TikTok has attracted unwanted scrutiny not only because of its addictive nature of constantly scrolling videos, but also because of its Chinese owner, ByteDance. This has raised concerns among lawmakers and security experts that the Chinese government could misuse TikTok’s personal data on millions of U.S. users.

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Meanwhile, TikTok asked users to contact their legislators to oppose the bill’s passage, but the effort didn’t seem to be able to sway opinion in Washington, D.C., said Clayton Allen, director of the Eurasia Group. he pointed out.

TikTok sent push alerts to users of the social media platform urging them to contact their lawmakers about a bill in Congress that would require Chinese owner ByteDance to sell or face a ban by the United States.

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As recently as last week, TikTok sent push notifications to some users urging them to contact their legislators, saying the bill could “take away their constitutional right to access TikTok.”

“If you have access to your user base, you can do it at a low cost,” Allen told CBS MoneyWatch. “But it seems like that backfired.”

Some lawmakers believe that TikTok’s ability to send bulk push notifications to users, many of whom are minors, emphasized the risks of the app.

TikTok said in a statement that the lawmakers “used the cover of critical foreign and humanitarian aid to trample on the free speech rights of 170 million Americans, destroy 7 million businesses, and destroy the U.S. economy by 240% per year. Shut down the platform that contributes billions of dollars.”

Here’s what you need to know about what’s next on the TikTok bill.

When is the Senate expected to vote on the TikTok bill?

The Senate is expected to consider the bill as early as Tuesday, but a vote could come as early as Wednesday, according to CBS News Congressional Correspondent Scott McFarlane.

The clock is ticking on a critical 24 hours for TikTok, as a bill is currently moving through Congress that could lead to TikTok’s ban in the United States.@MacFarlaneNews Here are the latest updates as the Senate prepares to vote on the bill. pic.twitter.com/VdRT2knKY6

— CBS News (@CBSNews) April 22, 2024

President Joe Biden has indicated he intends to sign the bill, which primarily provides foreign aid to Ukraine and Israel.

Why would Congress want to ban TikTok?

In fact, lawmakers want ByteDance to sell its stake in TikTok.Without such an agreement, this bill would effectively ban social media apps in the US.

Lawmakers have grown concerned about the company’s ties to China, worried that ByteDance and TikTok could share data about U.S. users with China’s authoritarian government.

“The idea of ​​giving the Communist Party such a propaganda tool and the ability to collect the personal information of 170 million Americans poses a national security risk,” said Sen. Mark Warner, D-Virginia. ” he said. He spoke on CBS’s “Face the Nation.” on sunday.

What is the timeline for a potential sale or closure of TikTok?

If passed, TikTok’s owners would have nine months to arrange a sale, with an additional three-month grace period, according to a copy of the bill released earlier this month. there is a possibility.

However, Eurasia Group’s Allen pointed out that the nine-month milestone will be in mid-to-late January, potentially coinciding with the U.S. presidential inauguration. If former President Donald Trump wins in November, he is very likely to take a different approach to TikTok, analysts said.

“This could be an issue for the next administration,” Allen said. “Looking at the text of the bill, it’s unclear whether President Trump is obligated to pursue what the Biden administration wants. He could use the bill as leverage against China.”

Who will buy TikTok if it goes on sale?

Possible bidders include Microsoft, Oracle and private equity groups, said Wedbush Securities analyst Dan Ives. Former Treasury Secretary Steven Mnuchin also told CNBC in March that he plans to form an investment group. Bidding on TikTok.

But Ives thinks ByteDance is unlikely to sell TikTok, its core algorithm. TikTok is an important piece of software that recommends videos based on users’ interests and viewing habits.

“Without the algorithm, TikTok’s value would change dramatically and the eventual sale/sale of TikTok would be a very complex endeavor, with many potential strategic/financial bidders entering the process. “We are anxiously awaiting the next step,” Ives said in a research note.

Could other social media platforms also benefit from this bill?

Ives noted that rival companies such as Meta Inc. could also benefit if the bill becomes law.

Wedbush estimated that about 60% of TikTok users would move to meta Instagram or Facebook if TikTok went dark in the U.S., adding that Google would also benefit.

More from CBS News

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Aimee Picchi is an associate editor at CBS MoneyWatch, covering business and personal finance. She previously worked at Bloomberg News and has contributed to national news outlets such as USA Today and Consumer Reports.





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