President Biden signed a bill that would ban TikTok if its Chinese parent company, ByteDance, doesn’t sell it within a year. The bill, which includes aid for Ukraine and Israel, was approved by the US Senate by a vote of 79-18 late Tuesday after the House overwhelmingly approved it over the weekend.
The bill gives ByteDance nine months to divest TikTok, with a 90-day extension available to complete a deal. If ByteDance doesn’t sell TikTok, it will become illegal for app stores to distribute the app in the US
In a statement emailed to TechCrunch, TikTok said it would challenge the “unconstitutional law” in court.
“We believe the facts and the law are clearly on our side and we will ultimately prevail,” the statement said. “The fact is, we have invested billions of dollars to keep US data secure and our platform free from outside influence and manipulation. This ban will destroy 7 million businesses and silence 170 million Americans. As we continue to challenge this unconstitutional ban, we will continue to invest and innovate to ensure that TikTok remains a place where Americans of all walks of life can safely come to share their experiences, find joy, and be inspired”.
TikTok CEO Shou Zi Chew shared his video reply on Wednesday, calling the news “a disappointing moment” and saying TikTok “will continue to struggle.”
In March, the House passed a similar stand-alone bill to ban TikTok or force its sale within six months, but the Senate never took up that bill. This time, the House packaged the TikTok bill with foreign aid to US allies, effectively forcing the Senate to make a decision.
TikTok has spent the past few months arguing that its platform is essential for creators and small businesses in the United States. A few weeks ago, the company released a financial impact report revealing that TikTok generated $14.7 billion for small to medium-sized companies in the US
The ban would not be the first for TikTok. Four years ago, India banned the app following a military battle on the India-China border, and both Google and Meta quickly seized the opportunity to poach both local creators and TikTok users through their respective copycats. , YouTube Shorts and Instagram Reels.
Many other countries also banned the service, including Senegal, Nepal, Afghanistan, Somalia and Iran.