President Joe Biden has recently signed a comprehensive foreign aid package into law. This package includes a crucial provision targeting TikTok, the popular social media platform. According to the bill, if the China-based parent company ByteDance fails to divest the app within a year, TikTok could face a potential ban in the United States.
This divest-or-ban bill sets a strict timeline for ByteDance to take action. Initially, the company had nine months to finalize a deal, with the possibility of a three-month extension granted by the president if significant progress is made.
As it stands, the earliest a ban could come into effect is January 2025. However, if the extension is granted, the deadline would be extended to April. Additionally, TikTok has hinted at potential legal action, which could prolong the process further by tying up the matter in the courts. This marks a departure from a previous House-passed bill, which included a shorter six-month window that could have led to a TikTok ban before the November election.
Insiders suggest that Democrats played a pivotal role in extending the timeline. A senior Republican aide pointed out that Senate Democrats consistently advocated for this change. This move conveniently aligns the deadline with the upcoming election, as noted by a Democratic source familiar with the issue.
In response to the new legislation, TikTok has indicated plans to challenge the law in court, as reported by Bloomberg based on an internal memo. This legal challenge could potentially delay enforcement, thereby extending the timeline. Furthermore, uncertainties linger regarding China’s reaction and whether ByteDance will be permitted to sell TikTok, including its prized algorithm, which drives user engagement on the platform.
