Benzinga - by Bibhu Pattnaik, Benzinga Staff Writer.
On Saturday, the U.S. House of Representatives passed a bill that could significantly impact the future of TikTok in the U.S.
The legislation proposes that TikTok, the widely popular video app, must be sold within a year or face a ban from U.S. app stores.
The bill was part of a larger package aimed at providing aid and bolstering national security measures in support of Ukraine, Israel and Taiwan.
The potential ban on TikTok, primarily due to its ties with China, has introduced a wave of uncertainty concerning the political, legal, and economic implications.
The next crucial step for this bill is its evaluation by the Senate, where it is anticipated to pass as part of priority legislation. Politico reported that the Senate had previously delayed action on an earlier version of the TikTok bill.
The most recent version of the bill was revised to address constitutional issues and extend the sale deadline for TikTok's parent company, ByteDance, to one year. These changes were made to strengthen the bill's legal standing and improve its chances of passage.
Despite broad support, the bill faces opposition from certain quarters, including Sen. Rand Paul (R-Ky.), who has been a vocal critic of both the TikTok legislation and the larger aid package it is part of.
His possible filibuster might prompt Senate Majority Leader Chuck Schumer to call for a cloture vote, requiring a 60-vote majority to move the bill forward.
Also Read: Elon Musk Voices Opposition To Potential TikTok Ban: 'It Is Not What America Stands For'
President Joe Biden has expressed his support for the bill, highlighting the administration's concerns about the national security threats posed by TikTok's operations and ByteDance.
Should the bill become law, TikTok is expected to challenge it in court on constitutional grounds.
Yet, according to Politico, experts like Sarah Kreps, director of Cornell University’s Tech Policy Institute, argued that national security concerns could give the legislation a robust legal standing.
The question of who could purchase TikTok remains complex, with figures like former President Donald Trump’s Treasury Secretary Steven Mnuchin expressing interest.
The sale's complexity is amplified by ByteDance's valuation and the potential regulatory hurdles any buyer would face.
China's strong opposition to a forced sale, especially regarding the non-export of TikTok’s algorithm, presents another significant challenge.
Now Read: Ivanka Trump Is Now On TikTok — Even Though Her Father Tried To Ban It In The US
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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