USA: What happens after the TikTok ultimatum?


faq

As of: April 24, 2024 3:58 p.m

Sale or de facto ban: With the ultimatum set by the US Congress, the dispute over TikTok in the USA is escalating. What follows from the non-partisan initiative – and how realistic is it that TikTok will comply?

Why does the US Congress want to ban TikTok?

Lawmakers from both Democrats and Republicans view the app as a national security risk because the government in Beijing could force the company to hand over user data. At a hearing in the US House of Representatives, intelligence coordinator Avril Haines warned that the government in Beijing could try to use the short video platform TikTok to influence the upcoming US presidential election.

In the current election year, many US politicians want to show toughness towards China. The dispute over TikTok is just one of many: In order to slow down China’s technological and military rise, the USA has, among other things, restricted exports of ultra-modern computer chips to the People’s Republic. Former US President Donald Trump had already tried to ban TikTok during his term in office. At that time he failed in the US courts.

Who voted for the law and who voted against it?

The U.S. House of Representatives passed the bill with a bipartisan majority of 360-58. In the Senate it was 79 to 18 votes. Leading Democrats and Republicans jointly initiated the initiative.

Among the bill’s opponents is prominent Democratic Rep. Alexandria Ocasio-Cortez, who voted “no.” In her opinion, there are “serious antitrust and data protection issues.” She said any national security concerns should be presented to the public before a vote. Her Democratic colleague Ro Khanna fears that the law will not stand up to judicial review because freedom of speech is a valuable asset.

Many young voters are critical of a possible ban. For them, the app is an important tool for following political issues or sharing their views. US President Joe Biden’s campaign team has set up its own TikTok channel. In Germany, Chancellor Olaf Scholz is now also present on the platform.

How does it go from here?

As soon as Biden signs the law, an initial period for sales begins – it runs for nine months. It may be extended by three months should the President consider that the transaction is nearing completion.

This decision is expected to be made around January 20, 2025, the date for the inauguration of the future US president. This task would fall to either a re-elected Biden or his challenger Trump. However, it is unclear whether the Chinese government would allow a TikTok sale or whether this transaction can be completed within the given time frame.

How does TikTok react?

The short video platform is expected to sue against the law. Their lawyers are expected to seek an injunction to prevent implementation of the law until its constitutionality is reviewed. This process could drag on into next year. A similar lawsuit against a ban in the US state of Montana was granted an injunction.

Who could take over TikTok’s US business?

Analysts at asset manager Wedbush see Microsoft and Oracle as possible buyers for TikTok. The two US companies have already expressed interest in the past. Various financial investors and consortia, including one led by former US Treasury Secretary Steven Mnuchin, are also available.

According to experts, the Chinese parent company ByteDance would never sell TikTok including the algorithms that, among other things, suggest new clips to users. They fall under technologies whose export requires state approval from the government in Beijing. Without these algorithms, the video platform would be worth significantly less than it is currently.

How would a ban be enforced?

If ByteDance does not separate from the subsidiary’s US business within the deadline, providers such as Apple or the Alphabet subsidiary Google will have to throw TikTok out of their respective app stores. In addition, US companies are no longer allowed to run the services of companies controlled by ByteDance on their servers. Theoretically, this would make it impossible for US users to access TikTok.

Is TikTok also banned in other countries?

TikTok and the programs of some other Chinese providers have been completely banned in India since mid-2020. The country justified this as a threat to national security. Nepal has also banned the video app. In numerous other countries, government representatives and civil servants had to delete TikTok from their work cell phones, including in Great Britain. The app is also taboo on these devices by the EU Commission.

In Germany, employees of the Federal Press Office are prohibited from using TikTok on their work devices. According to a media report, the Federal Office for Information Security (BSI) is examining possible risks of the app. The results of this investigation will not initially be made public. According to his own statements, the Commissioner for Data Protection, Ulrich Kelber, advised all federal ministries and authorities against installing the app on work cell phones in 2021.

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