The House of Representatives on Wednesday approved a bill requiring Chinese tech giant ByteDance to divest TikTok or the popular social video app will be effectively banned in the United States
The measure passed by a vote of 352 to 65, with one member present to vote.
The legislation, called the Protecting Americans from Apps Controlled by Foreign Adversaries Act, was sponsored by Rep. Mike Gallagher, D-Ill., of the House Select Committee on Chinese Communist Party, and Rep. Raja Kerry, D-Ill. Raised by Raja Krishnamoorthi on March 5. Two days later, members of the House Energy and Commerce Committee voted unanimously to approve the bill, which would deem TikTok a threat to national security because it is controlled by a foreign adversary.
The bill now goes to the Senate and faces uncertain With senators appearing divided over the legislation and other federal and state-led efforts to ban TikTok stalled, the outlook for the future is grim.
After the vote, a TikTok spokesperson said: “This process is secret and the bill is blocked for one reason: it is a ban.” “We hope the Senate will consider the facts, listen to their constituents, and recognize that The impact this has on the economy, the 7 million small businesses and the 170 million Americans who use our services.”
President Joe Biden created an official TikTok account in February as part of his campaign and has previously said he would sign the bill if it passes, White House press secretary Karine Jean-Pierre acknowledged. “Technical support in the legislative formulation process” is being provided.Jean-Pierre explain At a March 6 media briefing, the president would sign it once “it has legal status and can be passed by Congress.”
Participants hold signs in support of TikTok during a press conference outside the U.S. Capitol on March 12, 2024 in Washington, DC.
Anna Money Tree | Getty Images
Although the House members who drafted the bill had previously explain Although it “does not ban TikTok,” the legislation in its current form requires ByteDance to divest TikTok in about six months so that the app “continues to be available in the United States.”If the bill is enacted, app store owners, e.g. apple and Google Along with web hosting companies, they will be banned from supporting TikTok and other apps related to byte bouncing.
Lawmakers from both parties have claimed that TikTok poses a national security risk because of the app’s alleged ties to the Chinese Communist Party, something TikTok CEO Shou Zi Zhou denied at a Senate hearing.On the other hand, technology policy and civil liberties groups such as the American Civil Liberties Union and the Knight Institute have be opposed to The bill was concerned it would infringe on First Amendment rights.
TikTok CEO Shou Zi Chew testified before the House Energy and Commerce Committee hearing titled “TikTok: How Congress Can Protect U.S. Data Privacy and Protect Children from Online Harm” in Capitol Hill, Washington, DC, on March 23, 2023.
Jim Watson | AFP | Getty Images
Meanwhile, Republican presidential candidate Donald Trump said in an interview with CNBC earlier this week that he was concerned that banning TikTok would also make Facebook parent Meta a stronger company.
“You can make Facebook bigger without TikTok, but I think Facebook is the enemy of the people,” Trump said.
The former president’s comments are noteworthy given that the Trump administration attempted to remove TikTok from app stores in 2020, citing national security concerns and calling on ByteDance to divest the app.That same year, Microsoft was considering acquiring TikTok for $10 billion to $30 billion, but negotiations between the two companies ultimately failed and the Biden administration ultimately Cancel Trump administration order.
Angelo Zino, vice president and senior equity analyst at CFRA Research, told CNBC that if the latest TikTok bill is passed, TikTok’s U.S.-only operations “could be valued at more than $60 billion” market valuation. “
“Having said that, we don’t even know if things will get to this point, as ByteDance may decide to let TikTok cease operating in the United States if it is forced to do so,” Zino said in an email.
Earlier this week, Keith Rabois, a well-known venture capitalist and Republican mega-donor, posted on X that he would “never fund any Republican candidate or Republican-led PAC (or NRSC) that votes against TikTok legislation.”
“Support for the TikTok bill is an IQ test for members of Congress,” Labois said in an email to CNBC.
According to previous reports by CNBC, TikTok may be banned in the United States, leading several well-known TikTok creators to look for other ways to diversify their businesses and brands in addition to making viral videos on the platform.
watch: Beacon CEO says TikTok ban is not censorship, but national security
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