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ByteDance may have to sell off stake in TikTok or face nationwide US ban

In arguably one of the most devastating blows to Chinese-backed social media giant TikTok, the United States House of Representatives has passed a bill that may force parent company ByteDance to sell off the platform, or risk having it banned in the country.

Debuting in 2016 in its home market as Douyin, a name which it continues to use there, the video-based social app witnessed explosive growth upon its global release under the guise of TikTok. This is especially true of America, which recorded a massive 1239.29% growth since being introduced in September of 2017. As of February last year, it is said that an average of 150 million active users frequent TikTok.

US House of Representatives passes bill to potentially ban TikTok nationwide

However, given its ties with China, the United States government as well as several regulatory bodies have expressed concerns over the app’s popularity among the American public, especially with regards to data privacy. Much of this is owed to the fact that Chinese companies are required to share their data with the government, as outlined by national security law according to the BBC.

Wisconsin Republican representative Mike Gallagher, who co-authored the bill, said that the American government could not “take the risk of having a dominant news platform in America controlled or owned by a company that is beholden to the Chinese Communist Party”.

With that said, the American government has yet to successfully prove that TikTok’s presence could constitute a national security risk. Company representatives have also stressed that the personal data of American users are gatekept from ByteDance employees in China.

Dubbed the Protecting Americans from Foreign Adversary Controlled Applications Act, it was proposed by the American House Energy and Commerce Committee before being passed through the House with overwhelming bipartisan support at 352 affirmative votes against 65 dissenting representatives.

What will happen moving forward

But of course, the bill will still need to pass through Senate before it can be codified into law by President Joe Biden. Should it come to fruition, ByteDance will have a period of six months to divest its majority stake from the platform before it faces a complete ban in America.

Speaking on the House decision, a TikTok representative has urged the United States Senate to weigh the consequences an outright ban of the platform could have on the country’s considerable user base. “We are hopeful that the Senate will consider the facts, listen to their constituents, and realize the impact on the economy, 7 million small businesses, and the 170 million Americans who use our service,” they said.

Additionally, TikTok CEO Shou Zi Chew has also vowed to continue fighting and seek legal avenues to prevent a ban on the social platform in America. Shou is due to return to Capitol Hill today regarding the matter.

Feature and hero image credits: Solen Feyissa/Unsplash, cottonbro studio/Pexels

Note:
The information in this article is accurate as of the date of publication.

Written by

ByteDance may have to sell off stake in TikTok or face nationwide US ban

Benjamin Wong

Senior Editor, Fashion and Dining

Armed with an Advertising major from Lancaster University, Benjamin is a senior editor who has spent his time oscillating between the social media and digital media landscape since 2018. With a keen interest in haute fashion and gastronomy, he has written for publications such as ERROR Digital, WORLD OF BUZZ, and KL Foodie. Beyond the keyboard, you can find him arms-deep in a thrift pile.

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