US President Biden Enacts TikTok Ban: ByteDance Given One-Year Ultimatum

Maxwell Mutuma
April 25, 2024
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Highlights

  • President Biden signed a bill for ByteDance to sell TikTok within a year.
  • TikTok faces a U.S. ban if not sold in 9 months, with a 90-day extension.
  • The bill passed the Senate with a 79-18 vote and includes aid for Ukraine and Israel.

US President Joe Biden has signed a law that compels TikTok owner ByteDance, a Chinese corporation, to sell its interest on TikTok within 12 months of the signature. If the social media platform violates the mentioned rules, it will face the risk of a ban from the U.S. As part of a comprehensive legislative package that includes relief for Ukraine and Israel. The Senate made the final cut by 79–18 votes after a weekend demonstration of the powerful vote of the House.

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US Bill Proposes TikTok Ban Without Sale

The law includes an additional clause that allows ByteDance nine months to find a buyer for TikTok. An additional 90-day period of time is available upon completion of the transaction. Otherwise, Google Play and the App Store will ban the use of the TikTok app in the United States. This move is part of Huawei’s apprehension about national security and data security, which is connected to its allegiance to China.

TikTok, on the other hand, also opposes the “unconstitutional law,” arguing that it has spent a lot of money on the security and independence of US data from external influences. In its statement, TikTok emphasized that imposing a ban could impact 7 million businesses and 170 million American users by keeping them from freely expressing themselves.

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TikTok CEO Fights Back Against US Ban

Responding to the news via a video, the TikTok CEO, Shou Zi Chew, expressed his dissatisfaction and continued to state his commitment to the fight against the ban. This legislative action follows the precedent of another attempt by the House, which was an independent bid to ban TikTok or to force selling the application within six months; the Senate, however, did not move it further. The fact that the TikTok bill was part of a larger legislative package originating from the foreign aid sector might have been one reason for the Senate to push that bill ahead this time.

The discussion around TikTok’s influence and economic impact in the U.S. has been significant. Weeks prior, TikTok released an economic impact report, claiming it generated $14.7 billion for small and mid-sized U.S. businesses. The platform has been a key promotional tool for creators and small businesses across the country.

Internationally, TikTok has faced bans in other countries due to geopolitical tensions and security concerns. India, for example, banned TikTok four years ago after a military conflict with China. This set a precedent that has seen other countries such as Senegal, Nepal, Afghanistan, Somalia, and Iran also prohibit the service.

Read Also: Ripple CTO David Schwartz Highlights Liquidity Issues in Ripple Shares

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write extensively on topics such as blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.