President Biden has enacted a foreign aid package that includes legislation requiring China-based ByteDance, the parent company of TikTok, to divest the app within a year or face a ban.
The “divest-or-ban” bill has now become law, giving ByteDance a deadline to act. The company initially had nine months to secure a deal, but the President may grant an additional three months if progress is made.
Even without an extension, the ban could not take effect before January 2025. With an extension, the earliest possible ban date would be April 2025.
TikTok has threatened legal action, which could further delay the ban if the courts suspend its enforcement pending a resolution.
The current legislation differs from an earlier House-passed bill that would have imposed a six-month deadline for a TikTok ban, potentially triggering it before the November election. A Republican aide attributed the change to Democratic senators who preferred a longer timeline.
A Democratic source close to the issue acknowledged that the new deadline “conveniently addressed” the election.
According to an internal memo reported by Bloomberg, TikTok plans to challenge the law in court. This could extend the timeline if the courts stay enforcement while the case is pending.
Additionally, the response of China remains uncertain, particularly regarding whether it will allow ByteDance to sell TikTok and its valuable algorithm that drives user engagement. CONTINUE READING
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