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Westferry Times > Law and Articles > What to Know About the TikTok Bill Passed by the House
Law and Articles

What to Know About the TikTok Bill Passed by the House

Mona Porwal
By Mona Porwal Published September 14, 2024
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On Wednesday, the U.S. House of Representatives passed a bill that could force TikTok’s Chinese parent company, ByteDance, to sell the popular social media app. This move is part of the broader and ongoing technology and national security tensions between the United States and China. The House’s action, while significant, is just the beginning of what promises to be a challenging legislative journey, as the bill now faces an uncertain future in the Senate.

The TikTok National Security Debate

Concerns over TikTok’s Chinese ownership have been a central issue in the U.S.-China rivalry. Lawmakers, along with the White House, argue that ByteDance’s control of the app poses a serious national security threat. Their primary fear is that the Chinese government could potentially access sensitive data of American users or leverage the platform for spreading disinformation or political propaganda.

Prominent U.S. officials, including Christopher Wray, Director of the Federal Bureau of Investigation (FBI), and Avril Haines, Director of National Intelligence, have expressed alarm about the potential misuse of TikTok. They worry that the app could allow the Chinese government to gain unprecedented access to the personal data of millions of U.S. citizens, influencing opinions or manipulating online conversations.

The Bill and Its Senate Hurdles

While the House passed the bill with strong bipartisan support — 352 votes in favor and 65 against — the legislation still faces significant challenges ahead. Senate Majority Leader Chuck Schumer has not yet committed to bringing the bill up for a vote, leaving its fate uncertain. The bill was co-led in the House by Representative Mike Gallagher, a Republican from Wisconsin, and Representative Raja Krishnamoorthi, a Democrat from Illinois. On the Senate side, Virginia Senator Mark Warner, a Democrat, has also been a vocal supporter.

Gallagher and Warner have both emphasized that TikTok’s powerful algorithm, which recommends content to users, could potentially be weaponized by the Chinese government. The concern is that Beijing could use TikTok’s reach to push propaganda, especially during politically sensitive moments like elections or international conflicts.

TikTok’s Defense and Global Ownership

TikTok has repeatedly denied allegations that it poses any national security risk. The company argues that its ownership structure is more international than Chinese, with roughly 60 percent of its parent company ByteDance owned by global institutional investors, including major financial entities such as Susquehanna International Group and BlackRock. Moreover, TikTok has three American representatives on its five-member board.

To further assuage security concerns, TikTok says it has spent over $1 billion on a strategy to store sensitive U.S. user data domestically. The company has partnered with Oracle, a well-known American cloud computing firm, to manage these U.S. data storage efforts, in an attempt to demonstrate that it is taking serious steps to address concerns about foreign interference.

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How the Bill Would Force the Sale of TikTok

The bill passed by the House would effectively require ByteDance to divest itself of TikTok within six months. The buyer would need to be a party approved by the U.S. government, ensuring that ByteDance has no future control over the app or its influential algorithm, which has made TikTok one of the most popular social media platforms in the world.

In practical terms, this means that TikTok would be sold to a company deemed safe by U.S. regulators. The sale would sever all ties between ByteDance and TikTok, including its algorithm, which is a key part of TikTok’s appeal and success. This algorithm recommends content to users, shaping their experience and potentially their opinions — something lawmakers fear could be exploited by the Chinese government if left under ByteDance’s control.

What Happens Next?

Although the House vote is a major step, the bill must clear the Senate, where its prospects are less certain. Even if it passes in the Senate, there could still be legal and political battles ahead as TikTok fights to maintain its ownership structure.

If passed, the bill would have significant implications for U.S.-China relations, as well as for the broader tech industry. It would set a precedent for how the U.S. handles foreign-owned technology companies that pose perceived security risks.

In the meantime, TikTok continues to assert that the concerns surrounding its platform are unfounded, while lawmakers remain focused on ensuring that U.S. user data and national security are not compromised.

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