TikTok Faces US Clampdown, ByteDance Given 6 Months for Divestiture or Face US Ban

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TikTok, the globally popular short video app owned by China's ByteDance, now confronts a deadline. A newly approved U.S. legislation mandates ByteDance to withdraw its ties from TikTok within six months or else awaits a U.S. ban.

Deadline Dilemma- TikTok on Tightrope

The U.S. House of Representatives is gearing up to fast-track this legislation next week. The Energy and Commerce Committee's unanimous approval of the bill on Thursday reveals the first significant punitive stride against TikTok. According to reports, TikTok currently has a user base of roughly 170 million in the U.S. Such a step emerges for the first time since the failed attempt by ex-President Donald Trump to prohibit the app back in 2020. However, ByteDance's intense lobbying efforts caused a year-long pause on the crackdown.

House Majority Leader Steve Scalise revealed that the vote in the forthcoming week focuses on making TikTok break away from the Chinese Communist Party. The legislation hints at a complete U.S. taboo on TikTok, a perspective the company debunks vehemently.

Direction or Dispossession- What Lies in TikTok's Future

TikTok clarifies its stand by asserting its non-participation in data sharing with the Chinese Government. A significant concern arises as it remains doubtful if China will approve the sale or if the divestiture can occur within six months.

The company argues that the legislation aims to ban TikTok outright in the U.S., thereby infringing the Constitutional right of expression of 170 million Americans. This move could severely damage millions of businesses, artists, and creators nationwide.

The Trade-off Tug-of-War

Before the vote, lawmakers went through a classified briefing on the national security issues linked to TikTok's Chinese ownership. The top Democrat on the committee, Representative Frank Pallone, expressed his hope that the law would effectively lead to TikTok's divestment. Consequently, he hopes Americans can leverage this platform and its similar versions without falling prey to adversary controls.

Legislation was introduced by Representative Mike Gallagher, the Republican chairman of the House Select China Committee, and Representative Raja Krishnamoorthi, the panel's top Democrat, to address the national security issues posed by Chinese ownership of the app.

Legislation Tightens, Public Reacts

The legislation assures that TikTok could persist if a separation occurs. Gallagher urged the U.S. investors of ByteDance to back a sale and considered the move as a surgical intervention to remove the tumor.

However, this regulatory tightening has stirred the TikTok users, who are now bombarding Capitol Hill with phone calls. These users are urging lawmakers not to support the measure that could lead to banning their favorite app.

Metamorphosis or Moratorium- The Stakes Are High

After the classified briefing, lawmakers are left with two choices- divest TikTok or face the risk of a U.S. ban. Despite the possibility and probability of the Bill's impact on Tencent's U.S. operations or its WeChat, which Trump sought to ban in 2020, Gallagher expressed optimism about future debates on which companies fall under the law.

The legislation grants ByteDance 165 days to divest TikTok; failure to comply will prohibit app stores operated by Apple, Google, and others from legally offering TikTok or providing hosting services to ByteDance-controlled applications.

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