Biden Signs Law Banning TikTok, Forcing ByteDance to Sell US Operations

Biden Signs Legislation Forcing ByteDance to Divest TikTok Within a Year

On Wednesday, President Joe Biden signed a foreign aid package that includes a provision compelling ByteDance, the Chinese parent company of TikTok, to sell off the popular video-sharing app within the next 12 months.

The Clock Starts Ticking for ByteDance

With the divest-or-ban bill now officially law, ByteDance has a limited timeframe to make its move. The company has been granted an initial nine-month period to negotiate a deal, with the possibility of a three-month extension if the president deems sufficient progress has been made.

Political Maneuvering Pushes the Bill Through

Despite initial concerns that the legislation might stall in the Senate after passing as a standalone bill in the House, clever political tactics helped ensure its passage to Biden’s desk. The House strategically bundled the TikTok bill—which extended the divestment timeline from six to nine months compared to the earlier version—with foreign aid to US allies, effectively compelling the Senate to consider both measures in tandem. The extended divestment period also appeared to sway some hesitant lawmakers to support the bill.

TikTok Vows to Challenge the Law in Court

In response to the legislation, TikTok spokesperson Alex Haurek issued a statement indicating the company’s intention to contest the law in the courts. This legal challenge could potentially prolong the timeline, particularly if the courts decide to postpone enforcement while the case is being resolved. Additionally, there is uncertainty surrounding China’s reaction and whether it will permit ByteDance to sell TikTok and, crucially, its highly-prized algorithm that keeps users engaged with the app.

“As we continue to challenge this unconstitutional ban, we will continue investing and innovating to ensure TikTok remains a space where Americans of all walks of life can safely come to share their experiences, find joy, and be inspired,” Haurek said.

TikTok CEO Calls the Legislation a Ban

In a video posted on TikTok Wednesday, CEO Shou Chew strongly objected to some lawmakers’ claims that they merely seek to separate the platform from Chinese ownership, asserting:

“Make no mistake, this is a ban. A ban on TikTok and a ban on you and your voice.”

Update, April 24th: The article has been updated with an official statement from a TikTok spokesperson and its CEO.