US Senate passes bill forcing TikTok parent company to sell or face ban

The US Senate passed legislation that would force TikTok’s China-based parent company to sell the social media platform under the threat of a ban, a contentious move by US lawmakers that are expected to face legal challenges and disrupt the lives of content creators who rely on the short-form video app for income.

The TikTok legislation was included as part of a larger US$95 billion (NZ$169 billion) package that provides foreign aid to Ukraine and Israel and was passed 79-18. It now goes to President Joe Biden, who said in a statement immediately after passage that he will sign it tomorrow.

A decision made by House Republicans last week to attach the TikTok bill to the high-priority package helped expedite its passage in Congress and came after negotiations with the Senate, where an earlier version of the bill had stalled. That version had given TikTok’s parent company, ByteDance, six months to divest its stakes in the platform. But it drew skepticism from some key lawmakers concerned it was too short of a window for a complex deal that could be worth tens of billions of dollars.

The revised legislation extends the deadline, giving ByteDance nine months to sell TikTok, and a possible three-month extension if a sale is in progress. The bill would also bar the company from controlling TikTok’s secret sauce: the algorithm that feeds users videos based on their interests and has made the platform a trendsetting phenomenon.

TikTok did not immediately return a request for comment Tuesday night.

The passage of the legislation is a culmination of long-held bipartisan fears in Washington over Chinese threats and the ownership of TikTok, which is used by 170 million Americans. For years, lawmakers and administration officials have expressed concerns that Chinese authorities could force ByteDance to hand over US user data or influence Americans by suppressing or promoting certain content on TikTok.

“Congress is not acting to punish ByteDance, TikTok or any other individual company," Senate Commerce Committee Chairwoman Maria Cantwell said. "Congress is acting to prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and our US government personnel.”

Opponents of the bill say the Chinese government could easily get information on Americans in other ways, including through commercial data brokers that traffic in personal information. The foreign aid package includes a provision that makes it illegal for data brokers to sell or rent “personally identifiable, sensitive data” to North Korea, China, Russia, Iran or entities in those countries. But it has encountered some pushback, including from the American Civil Liberties Union, which says the language is written too broadly and could sweep in journalists and others who publish personal information.

Many opponents of the TikTok measure argue the best way to protect US consumers is through implementing a comprehensive federal data privacy law that targets all companies regardless of their origin. They also note the U.S. has not provided public evidence that shows TikTok sharing US user information with Chinese authorities, or that Chinese officials have ever tinkered with its algorithm.

“Banning TikTok would be an extraordinary step that requires extraordinary justification,” said Becca Branum, a deputy director at the Washington-based Center for Democracy & Technology, which advocates for digital rights. “Extending the divestiture deadline neither justifies the urgency of the threat to the public nor addresses the legislation’s fundamental constitutional flaws.”

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