TikTok sale bill passed by U.S. Congress… Only Biden’s signature remains

input2024.04.24 18:58
correction2024.04.24 23:40
surfaceA10

US business license must be sold within 270 days
The bill was passed within 50 days of its introduction.
In the event of an unconstitutionality lawsuit, the sale may take several years.

A bill mandating the Chinese company ByteDance’s forced sale of its video platform ‘TikTok’ passed the U.S. Congress 50 days after its introduction.

According to the New York Times (NYT), the U.S. Senate passed the ’21st Century Peace through Strength Act’ on the 23rd (local time) and a security bill that bundled a total of four bills supporting Ukraine, Israel, and Indo-Pacific allies, respectively. The package bill was passed with 79 votes in favor and 18 against. This bill, which passed the House of Representatives on the 20th and the Senate on the same day, will take effect immediately after being signed by President Joe Biden. On this day, President Biden said, “As soon as the bill comes to my desk, I will sign it into law and address the American people.”

Once the bill goes into effect, ByteDance must sell TikTok’s U.S. division within 270 days (the president can extend it by 90 days). If it is not sold, sales of TikTok will be completely banned from US app stores.

However, analysis suggests that if TikTok files a legal suit, it may take several years for the bill to be implemented. The federal court in Washington DC and the federal court in the Eastern District of Pennsylvania already put the brakes on former President Donald Trump when he issued an executive order to force the sale of TikTok in 2020. The effect of the executive order was suspended on the grounds that it violated the freedom of expression under the First Amendment to the Constitution. Michael Beckerman, head of TikTok’s U.S. public policy, told employees on the 20th, “We will file an objection in court at the stage when the bill is signed.”

The process of finding a buyer is not expected to be easy. The NYT pointed out, “Because of the high price, the candidates who can acquire TikTok are limited, and antitrust issues are at stake for big tech companies such as Meta and Google.” Wedbush analyst Dan Ives estimated the value of TikTok’s U.S. division at up to $100 billion (about 137 trillion won).

The Financial Times (FT), citing Chinese experts, predicted that the Chinese government could interfere with the sale of TikTok. One of the key elements of TikTok’s business is the algorithm that identifies and recommends what content users might like. Currently, ByteDance possesses this algorithm. Even if ByteDance decides to sell its U.S. division, TikTok’s U.S. division could become empty if the Chinese government restricts the sale of ByteDance’s algorithms. During the Trump administration’s attempt to force the sale of TikTok in 2020, the Chinese government announced a policy requiring regulatory approval when selling algorithms.

Reporter Kim In-yeop [email protected]