US President Joe Biden has approved legislation prohibiting TikTok from operating in the United States unless its parent business, ByteDance, transfers control to a US corporation within 9 months or one year.
The bill, which was part of a foreign aid package, has now become law with the president’s signature.
ByteDance has long been under pressure to abandon TikTok in the United States, but now that the measure has been signed into law, the Chinese company must act quickly or face a ban in one of its most important markets.
Although it appeared that the legislation would become blocked in the Senate after passing through the House, savvy political maneuvers guaranteed that it made it to Biden’s desk.
TikTok’s Foreign Funding
The House merged the TikTok measure with foreign funding to US allies, shortening the divestment deadline from six to three months. This technique prompted the Senate to consider both measures at the same time.
The extended divestment period also persuaded several previously undecided members to back the legislation.
According to TikTok spokesperson Alex Haurek, the company plans to challenge the rule in court. If the courts postpone enforcement while the problem is being resolved, this might potentially extend the schedule.
It is unclear how China would react and whether it will allow ByteDance to sell TikTok, particularly their coveted algorithm, which plays an important role in retaining users on the network.
Haurek said:
As we continue to challenge this unconstitutional ban, we will continue investing and innovating to ensure TikTok remains a space where Americans of all walks of life can safely come to share their experiences, find joy, and be inspired.
To read our blog on “TikTok’s apeal between European politicians grows,” click here