Title: TikTok Granted Additional 270 Days to Sell Its App under New Senate Bill
The saga surrounding TikTok's forced divestment from its Chinese parent company ByteDance continues, with an eleventh-hour bill proposing to extend the deadline for a potential sale. The bill, introduced by Senator Ed Markey of Massachusetts, could provide TikTok with an additional 270 days to find a new American owner or face shutdown in the U.S. This news was recently reported by The Verge.
Under the executive order issued by President Biden in April, TikTok had initially been given a deadline of January 19th, 2023, to find a new U.S. owner. Despite TikTok's insistence that it has no desire to split from ByteDance, new reports suggest that the Chinese government might be contemplating selling TikTok to Elon Musk. Following his $250 million support for Trump's presidential run, such a sale could result in a massive return on investment for Musk. TikTok swiftly denied these rumors.
Parallel to its legal battles, TikTok is also making a case in the courts. The Supreme Court heard oral arguments regarding the initial law last Friday, with both TikTok and its creators arguing that the ban would infringe upon free speech rights, as protected by the First Amendment. The government, however, insists that the ban is essential for national security reasons, as it seeks to regulate the service rather than the user-generated content.
Back in 2020, the gay hookup app Grindr was compelled to divest from its Chinese parent company after the CFIUS determined that the data could be misused for purposes like blackmailing or intimidating American users. TikTok, meanwhile, has argued that Chinese government has no control over its operations, but this assertion is undermined by recent reports of Chinese government consideration to sell the app.
Senator Markey, expressing concern over the potential consequences of a ban, stated that, "TikTok has its problems, but a TikTok ban would impose serious consequences on millions of Americans who rely on the app for social connections and their livelihood." The app boasts over 170 million monthly users in the U.S.
Interestingly, TikTok's situation has resulted in unusual political alliances. While Trump initially sought to ban TikTok during his first term, he has since created a TikTok account with over 14 million followers and is now advocating against the ban. Even as Trump pushes to halt the ban, TikTok users are hedging their bets by flocking to another Chinese short-form video app, RedNote, which raises questions about the effectiveness of a ban intended to protect against Chinese influence.
The future of TikTok's ownership could significantly impact the tech industry, with potential buyers like Elon Musk showing interest due to the app's massive user base and revenue potential. If the bill proposed by Senator Markey passes, TikTok will have more time to integrate advanced technology and improve its platform, ensuring its relevance in the tech world's future.
