US Senate passes bill to ban TikTok if its owner ByteDance fails to sell it.

The bill will now reach the table of US President Joe Biden who has already said that he will sign it into law as soon as it is cleared by Congress.  Once the bill is signed by President Biden, ByteDance will have to get its Chinese officials’s approval to complete a forced sale, something which China has vowed to oppose.

The measure against TikTok was included in the $95 billion worth of foreign aid package which includes military assistance to Ukraine, Israel and Taiwan that has been cleared by the Congress. 

It received massive support from the lawmakers as 79 Senators voted for it and 18 voted against it. TikTok came under unwanted scrutiny not only because it is addictive for users but also because of its Chinese owner ByteDance.

Why does the US Senate want to ban TikTok?

The US lawmakers have been pressurising ByteDance to sell its stake in TikTok since they fear that TikTok or ByteDance can share data about the users of the United States with the government of China.

The chances of TikTok becoming a trove of data of about millions of US users has left lawmakers worried. 

TikTok, in a statement, said that 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.”

When does TikTok’s endgame clock start?

After the bill is signed by Biden, ByteDance will have 270 days to sell TikTok. In this case, if it appears that ByteDance is near divestment at the end of its nine-month period, an additional 90 days can be authorised by the president to finalise the deals.

What is the Biden administration’s take on the TikTok bill?

In a statement, President Biden said that he will approve the bill once it is passed by the Senate.

“I will sign this bill into law and address the American people as soon as it reaches my desk tomorrow so we can begin sending weapons and equipment to Ukraine this week,” said Biden. 

“The need is urgent: for Ukraine, facing unrelenting bombardment from Russia; for Israel, which just faced unprecedented attacks from Iran; for refugees and those impacted by conflicts and natural disasters around the world, including in Gaza, Sudan, and Haiti; and for our partners seeking security and stability in the Indo-Pacific,” he added. 

Who are the likely buyers of TikTok?

Microsoft, Oracle or private equity groups are to be the likely bidders, said Wedbush Securities analyst Dan Ives, as reported by CBS News. 

Meanwhile, former Treasury Secretary Steven Mnuchin informed CNBC that he wishes to assemble an investment group to bid for TikTok.

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US Senate passes bill to ban TikTok if its owner ByteDance fails to sell it
Washington DC, United StatesEdited By: PrishaUpdated: Apr 24, 2024, 09:50 AM IST
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Broken ethernet cable is seen on front of U.S. flag and TikTok logo. Photograph:(Reuters)
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TikTok’s Chinese owner Bytedance has now been given two options – either to sell its stakes or face ban in United States


The United States Senate passed controversial legislation on Wednesday (April 24) which can lead to the banning of the massively popular social media app TikTok in the country if its China-based parent company ByteDance doesn’t sell it.

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The bill will now reach the table of US President Joe Biden who has already said that he will sign it into law as soon as it is cleared by Congress.

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Once the bill is signed by President Biden, ByteDance will have to get its Chinese officials’s approval to complete a forced sale, something which China has vowed to oppose.

Also Read: European Union warns of TikTok Lite ban over ‘addictive’ reward-to-watch feature

The measure against TikTok was included in the $95 billion worth of foreign aid package which includes military assistance to Ukraine, Israel and Taiwan that has been cleared by the Congress.

It received massive support from the lawmakers as 79 Senators voted for it and 18 voted against it. TikTok came under unwanted scrutiny not only because it is addictive for users but also because of its Chinese owner ByteDance.

Why does the US Senate want to ban TikTok?
The US lawmakers have been pressurising ByteDance to sell its stake in TikTok since they fear that TikTok or ByteDance can share data about the users of the United States with the government of China.

The chances of TikTok becoming a trove of data of about millions of US users has left lawmakers worried.

TikTok, in a statement, said that 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.”

When does TikTok’s endgame clock start?
After the bill is signed by Biden, ByteDance will have 270 days to sell TikTok. In this case, if it appears that ByteDance is near divestment at the end of its nine-month period, an additional 90 days can be authorised by the president to finalise the deals.

What is the Biden administration’s take on the TikTok bill?
In a statement, President Biden said that he will approve the bill once it is passed by the Senate.

“I will sign this bill into law and address the American people as soon as it reaches my desk tomorrow so we can begin sending weapons and equipment to Ukraine this week,” said Biden.

“The need is urgent: for Ukraine, facing unrelenting bombardment from Russia; for Israel, which just faced unprecedented attacks from Iran; for refugees and those impacted by conflicts and natural disasters around the world, including in Gaza, Sudan, and Haiti; and for our partners seeking security and stability in the Indo-Pacific,” he added.

Who are the likely buyers of TikTok?
Microsoft, Oracle or private equity groups are to be the likely bidders, said Wedbush Securities analyst Dan Ives, as reported by CBS News.

Meanwhile, former Treasury Secretary Steven Mnuchin informed CNBC that he wishes to assemble an investment group to bid for TikTok.

Watch: Malaysia urges Meta and TikTok to tackle harmful content on platforms


Ives, however, hinted that ByteDance is not likely to sell TikTok with its core algorithms as well as the important software that gives video recommendations to users based on their interests.

“The value of TikTok would dramatically change without the algorithms and makes the ultimate sale/divestiture of TikTok a very complex endeavour, with many potential strategic/financial bidders waiting anxiously for this process to kick off,” said Ives, in a research note.

How will other social media platforms benefit from the ban?
If the bill becomes a law, TikTok’s rivals like Meta are likely to benefit from it. According to Wedbush Securities analyst, nearly 60 per cent of TikTok users are likely to shift to Meta’s Instagram and Facebook if a ban is imposed on TikTok. Google is also likely to benefit from this ban.