Legislation aiming to ban TikTok in the U.S. or force its sale was rapidly progressing through the House, signaling the potential shutdown of the popular app.
Lawmakers cited concerns over data sharing with the Chinese government and potential propaganda dissemination.
See Also: Is TikTok Finally Getting Banned? Key House Committee Vote Moves Potential Ban Closer To Reality
A recent bill, which passed the House Energy and Commerce Committee unanimously, caught TikTok off-guard, leading to increased buyer interest, The Wall Street Journal reported.
Rep. Mike Gallagher co-authored the bill, which mandated ByteDance, TikTok's parent company, divest or face a U.S. ban. Gallagher aimed for swift Senate action, supported by President Joe Biden's pledge to sign it.
"If they pass it, I'll sign it," Biden said when asked by reporters about the legislation.
Meanwhile, former President Donald Trump, who previously advocated for banning TikTok, reversed his stance, targeting Meta Platforms Inc.'s META Facebook instead.
Trump expressed this shift in a post on Truth Social stating: "If you get rid of TikTok, Facebook and Zuckerschmuck will double their business."
In a CNBC interview, Trump reiterated his opposition to banning TikTok, emphasizing concerns that banning it would benefit Facebook: “There's a lot of good and a lot of bad with TikTok, but the thing I don't like is without TikTok you can make Facebook bigger. And I consider Facebook to be an enemy of the people.”
TikTok views the bill as an effective ban, rejecting the practicality of separating its U.S. operations. U.S. tech giants eye acquisition, with former Activision CEO Bobby Kotick expressing interest.
During dinner at an Allen & Co. conference, Kotick reportedly discussed the possibility of partnering with various individuals, including OpenAI CEO Sam Altman. OpenAI sees potential in using TikTok to enhance its AI models, provided Kotick secures the necessary capital for the acquisition.
What's Next For TikTok? The proposed legislation targeting TikTok took the company by surprise. According to The Wall Street Journal: "The company, which says it wouldn’t comply with an order from the Chinese government if asked for data and has never been asked, had been tracking the legislation. But internally, leaders didn’t expect it to gain so much traction so quickly."
With the bill successfully clearing the committee stage, it is poised for a vote in the full House, with expectations high for its approval. The platform used by over 170 million Americans perceives the bill as tantamount to a ban, arguing that separating its U.S. operations would undermine its global appeal.
TikTok is responding to the bill's advancement by considering various strategies to halt its passage. This involves looking to senators who oppose the bill due to worries about its impact on free speech and business operations.
Additionally, TikTok might challenge the bill's legality, citing potential violations of the First Amendment, if it progresses through Congress and is signed into law by Biden.
Read Next: Meta's Facebook Plans To Unveil AI-Powered Video Recommendations Beyond TikTok-Like Reels
Photo: salarko on Shutterstock.
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