The TikTok sell-off bill has been signed into law by U.S. President Joe Biden, requiring TikTok to be sold to a U.S.-based owner within 270 days or face a ban in the nation. TikTok plans to challenge the bill in court, arguing that it is unconstitutional. The government will defend the bill on national security grounds, which may make it more likely to hold up under scrutiny. While TikTok could potentially challenge and defeat the bill in court, it seems unlikely that this would result in the app maintaining its Chinese ownership.
TikTok will have a year until it needs to be in U.S. ownership or face shutdown. There is an additional provision that could allow for an extension of three months under certain conditions. The Chinese Government has vowed to oppose the sell-off push, which could prevent the sale from happening even if TikTok finds a potential buyer. Companies such as Oracle, Microsoft, Walmart, and Triller have been mentioned as potential buyers, with Oracle likely still showing interest in acquiring the app.
There is a concern that other nations may also follow the U.S. lead and implement similar rulings to ban TikTok. Should the app be sold to a U.S. company, most Western nations may be comfortable with their user data being stored in the U.S., like other social apps. However, E.U. officials have been pushing for European user data to be kept in Europe. The banning of TikTok on Government devices in various Western nations over the years could indicate a potential domino effect leading to more bans on the app.
Having a diversified digital strategy is important, and while TikTok may face a potential ban, an agreement may still be reached to keep the app running in the U.S. Instagram Reels and YouTube Shorts could benefit from TikTok’s potential ban and may be good alternatives to consider. Snapchat Spotlight could also be a consideration based on the audience. It is advisable to consider alternatives and explore other platforms regardless of the outcome for TikTok.
The TikTok divestment push could become a larger point of contention between the U.S. and China, potentially impacting diplomatic relations between the two global powers. The fact that an app focused on lighthearted dance clips is at the core of this dispute is notable. The situation between TikTok and the U.S. government may continue to evolve, leading to further developments and potentially a bigger conflict between the two nations.