Tiktok Clock Starts
The U.S. Senate passed legislation on Tuesday that gives TikTok’s Chinese owner, ByteDance, roughly nine months to sell the U.S. assets of the popular short-video app. President Joe Biden is expected to sign the bill into law on Wednesday, triggering a ticking clock for ByteDance. The company will have 270 days to find a buyer for TikTok’s U.S. operations, or face a nationwide ban.
There’s a potential wrinkle, however. If it appears ByteDance is close to a sale by the end of the nine-month period, the president can grant an additional 90 days to finalize the deal.
Tiktok Sues
Anticipating the bill’s passage, TikTok is expected to challenge it in court. The company’s lawyers will likely seek a preliminary injunction to block the law’s enforcement while their lawsuit challenging its constitutionality plays out. This process could take significant time, potentially extending TikTok’s stay in the U.S. market.
Tiktok will not change
For the immediate future, TikTok’s U.S. platform should remain unchanged for its estimated 170 million users. The divestment period is expected to conclude by early 2025.
China’s Response
China has restrictions on exporting certain technologies, which may affect the sale of TikTok’s U.S. assets. Experts believe the app’s recommendation algorithm could fall under these restrictions.
