By MATT O’BRIEN (AP Technology Writer)
U.S. lawmakers are threatening to ban TikTok but also say they are giving its Chinese parent company a chance to keep it running.
A bill going to vote in the U.S. House of Representatives suggests that TikTok users in the U.S. can continue using the app if its Chinese parent company, ByteDance, gives up ownership.
U.S. Rep. Raja Krishnamoorthi, an Illinois Democrat and bill co-sponsor, recently expressed that ByteDance could make it easier for themselves by divesting @tiktok_us, instead of facing difficulty.
However, experts believe that lawmakers are oversimplifying the situation.
Although some have shown interest in buying TikTok’s U.S. operations, there are several challenges, including a 6-month deadline to complete the transaction.
Stanford University researcher Graham Webster, who focuses on Chinese technology policy and U.S.-China relations, mentioned that finding a buyer willing to pay the substantial amount the product and system are worth is a significant hurdle.
While big tech companies could afford the acquisition, they would likely face close examination from antitrust regulators in the U.S. and China. However, if the bill becomes law and withstands First Amendment court challenges, it could lower the cost of acquiring TikTok.
Matt Perault, from the University of North Carolina’s Center on Technology Policy, which receives funding from TikTok and other tech firms, stated that the legislation would likely reduce the sale price and increase pressure on the company to sell within the 180-day timeframe, potentially resulting in a lower acquisition cost.
The bill proposes prohibiting TikTok in the U.S. unless there is a “qualified divestiture.”
To meet this requirement, the U.S. president must decide through a collaborative process that TikTok is no longer controlled by a foreign adversary. Additionally, the new U.S.-based TikTok must sever all ties with ByteDance, including ending cooperation related to the operation of a content recommendation algorithm or sharing data.
The bill reflects long-standing concerns that Chinese authorities might compel ByteDance to provide data on the 170 million Americans who use TikTok, based on national security laws requiring organizations to assist with intelligence gathering.
The bill is unusual in that it specifically targets a single company. Normally, the Committee on Foreign Investment in the United States (CFIUS) reviews whether a sale poses any national security threats.
Yes. The Trump administration arranged a deal in 2020 where U.S. companies Oracle and Walmart would have taken a significant share in TikTok due to national security concerns.
The agreement would have also made Oracle responsible for hosting all U.S. user data from TikTok and securing computer systems to meet national security requirements. Microsoft also made an unsuccessful offer, which its CEO Satya Nadella later described as the most unusual project he's ever worked on.
Instead of action from Congress, the 2020 arrangement was a response to then-President Donald Trump’s series of executive actions aimed at TikTok.
However, the sale did not happen for several reasons. Trump's executive orders were delayed by court proceedings as the 2020 presidential election approached. Additionally, China had placed stricter controls on exporting technology.
President Joe Biden reversed the decision in 2021 and dropped the legal processes. Now Biden supports a bill to ban TikTok if ByteDance does not sell it, while Trump does not support this.
