TikTok users could soon find out that the popular social media service has a new owner or, although it wouldn’t happen immediately, is banned in the US altogether.
On Saturday, the House passed legislation that ban TikTok from operating in the US if the owner of the popular China-based platform does not sell his stake within a year. The bill will soon go to the Senate, where it is expected to be approved, driven by its connection to a broader foreign aid package for Ukraine and Israel that has gained bipartisan support.
TikTok has attracted unwanted scrutiny not only for the addictiveness of its constantly scrolling videos, but also for its Chinese owner, ByteDance. This has raised concerns among lawmakers and security experts that the Chinese government could tap into TikTok’s trove of personal data on millions of American users.
Meanwhile, TikTok has asked its users to contact their lawmakers to argue against the bill’s passage, an effort that appears to have failed to sway opinions in Washington, D.C., the Eurasia director noted. Group, Clayton Allen.
Aimee Picchi
As recently as last week, TikTok was sending push notifications to some of its users urging them to contact their legislator, saying the bill could “take away YOUR CONSTITUTIONAL RIGHT to access TikTok.”
“It’s a low-cost exercise if you have access to the user base,” Allen told CBS MoneyWatch. “But it seems to have backfired.”
Some lawmakers had argued that TikTok’s ability to send mass push notifications to its users, many of them minors, highlighted the risks of the application.
In a statement, TikTok said it is “unfortunate” that the legislation is “using the cover of important foreign and humanitarian assistance to once again stymie a ban bill that would trample on the free speech rights of 170 million Americans, “It would devastate 7 million businesses and shut down a platform that contributes $24 billion to the U.S. economy annually.”
Here’s what you need to know about what could happen after the TikTok bill.
When will the Senate vote on the TikTok bill?
The Senate is expected to take up the bill on Tuesday, although a vote could take place as early as Wednesday, CBS News congressional correspondent Scott MacFarlane said.
President Joe Biden has indicated he would sign the bill, which focuses primarily on providing foreign aid to Ukraine and Israel.
Why does Congress want to ban TikTok?
In fact, lawmakers want ByteDance to sell its stake in TikTok. Unless such an agreement is reached, the legislation would, in effect, ban the social media app in the US.
Lawmakers are increasingly concerned about the company’s ties in China, with fears that ByteDance or TikTok could share data on American users with China’s authoritarian government.
“The idea that we would give the Communist Party this propaganda tool, as well as the ability to extract personal data from 170 million Americans, is a national security risk,” said Sen. Mark Warner, D-Virginia. said on CBS’ “Face the Nation”: on Sunday.
What is the timeline for a possible sale or closure of TikTok?
If passed, the bill would give TikTok’s owner nine months to arrange a sale, with the possibility of an additional three-month grace period, according to a copy of the bill released earlier this month.
But, Eurasia Group’s Allen noted, that would put the nine-month mark somewhere in mid-to-late January, which could also coincide with the U.S. presidential inauguration. If former President Donald Trump wins in November, he could very well take a different tack with TikTok, the analyst noted.
“This could become a question for the next administration,” Allen said. “Looking at the language of the bill, I’m not sure Trump would be as obligated to pursue what the Biden administration would want. He could use it as a point of leverage over China.”
If TikTok is sold, who could buy it?
Possible bidders include Microsoft, Oracle or private equity groups, according to Dan Ives, an analyst at Wedbush Securities.
However, Ives believes ByteDance is unlikely to sell TikTok with its core algorithms, the vital software that provides video recommendations to users based on their interests and viewing habits.
“TikTok’s value would change dramatically without the algorithms and makes the eventual sale/divestiture of TikTok a very complex undertaking, with many potential strategic/financial bidders eagerly waiting for this process to begin,” Ives said in a research note.
Could other social media platforms benefit from the bill?
Rivals like Meta could benefit from the bill if it becomes law, Ives noted.
Wedbush estimates that about 60% of TikTok users would switch to Instagram and Facebook from Meta if TikTok stopped working in the US. Google would also benefit, he added.