House Passes Bill Mandating TikTok Divestiture Amid National Security Concerns

The House approved a bill calling for China tech giant ByteDance to divest TikTok or the app will be banned in the U.S. The bill, dubbed the Protecting Americans from Foreign Adversary Controlled Applications Act, passed with a 352-65 vote and one member voting present. The legislation was introduced by Reps. Mike Gallagher and Raja Krishnamoorthi, citing TikTok as a national security threat controlled by a foreign adversary. The bill is now headed to the Senate where its future is uncertain due to divided opinions among senators. President Joe Biden has expressed willingness to sign the bill if passed and the White House is providing support in crafting the legislation. The bill requires ByteDance to divest TikTok within roughly six months for the app to remain available in the U.S. Lawmakers from both parties have raised concerns about TikTok's ties to the Chinese Communist Party despite denials from TikTok CEO Shou Zi Chew. The bill has faced opposition from tech policy and civil liberties organizations over First Amendment rights concerns. Former President Donald Trump expressed concern that a TikTok ban would benefit Facebook's parent company, Meta. If the TikTok bill passes, it could have significant implications for TikTok's business and potential valuation. Prominent TikTok creators are exploring other opportunities to diversify their businesses amid the threat of a U.S. ban.