Presidential Joe Biden has enacted a foreign aid package encompassing a measure that could lead to a TikTok ban if ByteDance, its China-based parent company, doesn’t divest within a year. This legislation, now in effect, sets a timeline for ByteDance to act, initially granting nine months for negotiations, extendable by the president for another three months.
The earliest potential ban date is January 2025, or April with an extension, potentially prolonged further by legal challenges from TikTok. The shift from a prior House-passed bill with a shorter timeline is attributed by a senior Republican aide to Negotiation period.
According to a Democratic insider, the election conveniently influenced the new deadline.
Bloomberg reported that TikTok intends to contest the law in court based o. An internal memo, potentially prolonging the timeline if legal proceedings delay enforcement. Additionally, uncertainties linger regarding China’s reaction and its willingness to allow ByteDance to sell TikTok, particularly its valuable algorithm, which is instrumental in retaining users on the plat.