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Business View Elite > News > ByteDance Must Sell TikTok To US Company To Avoid Ban
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ByteDance Must Sell TikTok To US Company To Avoid Ban

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Last updated: April 25, 2024 1:18 pm
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ByteDance Must Sell TikTok to US Company to Avoid Ban
ByteDance Must Sell TikTok to US Company to Avoid Ban
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A popular short-making video is likely to be banned in the United States. The news regarding the same has been attracting attention as people are getting curious to know the reason behind the ban. The reason behind the restrictions on TikTok in the United States is national security concerns. US President Joe Biden signed legislation regarding the same in the wake of national security concerns on Wednesday, 24 April 2024. The newly signed legislation would ban TikTok (Chinese App).

Contents
ByteDance Need To Sell TikTokWhat Is The Reaction Of TikTok?

ByteDance Need To Sell TikTok

If ByteDance ( a company that owned TikTok and Doyin) sells this app to any US company only then it will pass the safety law measures of the United States. That means the US users of TikTok will only be able to use the app if it is acquired by any US company. It is worth noting that the app is widely popular in the US and approximately 170 million Americans are currently using it, the majority younger. Not only ByteDance but American TikTok stars are also worried regarding the same. 

It is not the first time that TikTok has faced the threat of a ban; many countries including India have already banned this Chinese app due to national security concerns. The law is mainly aimed at providing help to Taiwan, Ukraine and Israel. As per the US President, the $95 billion package of assistance will be provided to these countries. Apart from that, President Biden also states that the foreign aid bill also provides humanitarian assistance to Haiti, Gaza and Sudan. This ends a 6-month saga of political battles on Capitol Hill. 

After signing the foreign bill at the White House in Washington, DC, President Biden said “The path to my desk was difficult. It should have been easier and it should’ve gotten there sooner…But in the end, we did what America always does, we rose to the moment.” 

Also Read: UAE’s Health Ministry’s Safety Advisory Post-Floods

Apart from it, the signature of Biden into the law came after receiving the responses from two branches of the country, the Senate and the House. After the House approved the measure on Saturday, the Senate approved it on Monday in a bipartisan vote of 79–18. As we mentioned above, the new law measures impose a need on ByteDance to sell TikTok to any US Company within 9 months, with a potential year extension if Biden invoked. If ByteDance fails to do so it will face restrictions in the U.S. just like other countries. 

What Is The Reaction Of TikTok?

After receiving the ban threat, TikTok decides to handle the situation legally. TikTok shared a response regarding the same on X (Formerly Twitter) that reads, “This unconstitutional law is a TikTok ban, and we will challenge it in court…This ban would devastate seven million businesses and silence 170 million Americans.”

Shou Zi, CEO of TikTok also shared his response through a video in which he can be seen echoing the statement and condemning the law. He even lamented the bill as a “disappointing moment” and promised the TikTok users to bring this issue to court. He said “Rest assured, we aren’t going anywhere. The facts and the Constitution are on our side and we expect to prevail again.”

However, in the defence, Democratic Sen. Maria Cantwell said, “Congress is not acting to punish ByteDance, TikTok or any other individual company.” He clarified that the reason behind bringing the law measures is the safety of its citizens. He said, “Congress is acting to prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and our U.S. government personnel.” 

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