Current:Home > ContactThe TikTok ban was just passed by the House. Here's what could happen next. -GrowthSphere Strategies
The TikTok ban was just passed by the House. Here's what could happen next.
View
Date:2025-04-12 14:04:02
TikTok users could soon find that the popular social media service is either under new ownership or, although it wouldn't happen immediately, outright banned in the U.S.
On Saturday, the House passed legislation that would bar TikTok from operating in the U.S. if the popular platform's China-based owner doesn't sell its stake within a year. The bill will next head to the Senate, where it is expected to pass, buoyed by its attachment to a larger foreign aid package for Ukraine, Israel and other U.S. allies that has gained bipartisan support.
TikTok has attracted unwanted scrutiny not only for the addictiveness of its constantly scrolling videos, but also due to its Chinese owner, ByteDance. That has raised concerns among lawmakers and security experts that the Chinese government could tap TikTok's trove of personal data about millions of U.S. users.
Meanwhile, TikTok has asked its users to contact their lawmakers to argue against the bill's passage, an effort that appears to have failed to sway opinions in Washington, D.C., noted Eurasia Group director Clayton Allen.
As recently as last week, TikTok was sending push notifications to some of its users urging them to reach out to their lawmakers, saying that the bill could "take away YOUR CONSTITUTIONAL RIGHT to access TikTok."
"It's a low-cost exercise if you have access to the user base," Allen told CBS MoneyWatch. "But it seems like it has backfired."
Some lawmakers had argued that TikTok's ability to send bulk push notifications to its users, many of them minors, underscored the risks of the app.
In a statement, TikTok said it is "unfortunate" that lawmakers are "using the cover of important foreign and humanitarian assistance to once again jam through a ban bill that would trample the free speech rights of 170 million Americans, devastate 7 million businesses, and shutter a platform that contributes $24 billion to the U.S. economy, annually."
Here's what to know about what could happen next to the TikTok bill.
When will the Senate vote on the TikTok bill?
The Senate is expected to take up the bill as early as Tuesday, although the vote could come on Wednesday, said CBS News congressional correspondent Scott MacFarlane.
The clock is ticking on a crucial 24 hours for TikTok, as a bill that could lead to the app being banned in the U.S. is now racing through Congress.@MacFarlaneNews has the latest as the Senate prepares to vote on the bill: pic.twitter.com/VdRT2knKY6
— CBS News (@CBSNews) April 22, 2024
President Joe Biden has indicated he would sign the bill, which is primarily focused on providing foreign aid to Ukraine and Israel.
Why does Congress want to ban TikTok?
Actually, lawmakers want ByteDance to sell its stake in TikTok. Barring such a deal, the legislation would, in fact, ban the social media app in the U.S.
Lawmakers are increasingly concerned about the company's ties in China, with fears that ByteDance or TikTok could share data about U.S. users with China's authoritarian government.
"The idea that we would give the Communist Party this much of a propaganda tool, as well as the ability to scrape 170 million Americans' personal data, it is a national security risk," Senator Mark Warner, a Virginia Democrat, said on CBS' "Face the Nation," on Sunday.
What is the timeline for a possible TikTok sale or shutdown?
If passed, the bill would give TikTok's owner nine months to arrange a sale, with the potential for an additional three-month grace period, according to a copy of the bill released earlier this month.
But, Allen of Eurasia Group noted, that would put the nine-month mark in mid- to late January, which could also coincide with the U.S. presidential inauguration. If former President Donald Trump wins in November, he could very well take a different tack with TikTok, the analyst noted.
"This might become a question for the next administration," Allen said. "Looking at the language of the bill, I'm not sure Trump would be as bound to pursue what the Biden administration would want. He could use it as a point of leverage with China."
If TikTok is sold, who might buy it?
Likely bidders include Microsoft, Oracle or private equity groups, according to Wedbush Securities analyst Dan Ives. Former Treasury Secretary Steven Mnuchin also told CNBC in March that he planned to assemble an investment group to bid for TikTok.
However, Ives thinks ByteDance would be unlikely to sell TikTok with its core algorithms, the vital software that provides video recommendations to users based on their interests and viewing habits.
"The value of TikTok would dramatically change without the algorithms and makes the ultimate sale/divestiture of TikTok a very complex endeavor, with many potential strategic/financial bidders waiting anxiously for this process to kick off," Ives said in a research note.
Could other social media platforms benefit from the bill?
Rivals such as Meta could benefit from the bill if it becomes a law, Ives noted.
Wedbush estimates that roughly 60% of TikTok users would shift to Meta's Instagram and Facebook if TikTok went dark in the U.S. Google would also benefit, he added.
- In:
- Technology
- Social Media
- Politics
- Meta
- TikTok
- ByteDance
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
TwitterveryGood! (581)
Related
- Friday the 13th luck? 13 past Mega Millions jackpot wins in December. See top 10 lottery prizes
- Ex-U.S. official says Sen. Bob Menendez pressured him to quit interfering with my constituent
- Northern lights could be visible in the US again tonight: What states should look to the sky
- Whoopi Goldberg makes rare Friday appearance on 'The View' for Donald Trump guilty verdict
- Kylie Jenner Shows Off Sweet Notes From Nieces Dream Kardashian & Chicago West
- Massachusetts teacher on leave after holding mock slave auction and using racial slur, official says
- Boy Meets World's William Daniels Has a Mini Cast Reunion With His Favorite Students
- Why Padma Lakshmi Says She's in Her Sexual Prime at 53
- Why members of two of EPA's influential science advisory committees were let go
- Therapy dogs real stars of Women's College World Series, aiding mental health and performance
Ranking
- Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
- Drew Brees said he could have played another three years in NFL if not for arm trouble
- How Dance Moms’ Kelly Hyland Is Preserving Her Hair Amid Cancer Treatment
- Boeing's Starliner ready for Saturday launch to space station, first flight with crew on board
- Paige Bueckers vs. Hannah Hidalgo highlights women's basketball games to watch
- Untangling the Story Behind Dancing for the Devil: The 7M TikTok Cult
- Biden says Israel has extended new cease-fire proposal
- US gymnastics championships highlights: Simone Biles cruising toward another national title
Recommendation
How to watch the 'Blue Bloods' Season 14 finale: Final episode premiere date, cast
34 in police custody after pro-Palestinian protest at Brooklyn Museum, damage to artwork reported
Biden addresses Trump verdict for first time
Nevada State Primary Election Testing, Advisory
FACT FOCUS: Inspector general’s Jan. 6 report misrepresented as proof of FBI setup
Eiza González Defends Jennifer Lopez After Singer Cancels Tour
Nicki Minaj cancels Amsterdam concert after reported drug arrest there last weekend
Facebook, Reddit communities can help provide inspiration and gardening tips for beginners