Will TikTok get banned in the USA?
TikTok’s boss is indicating that they’d rather be banned in the US than be forced to sell!
So on March 13, the United States House of Representatives passed a bill to essentially ban TikTok unless its owners sell to an American company.
Well, TikTok ain’t about that life.
Their CEO Shou Zi Chew has clapped back!
“Over the last few years, we have invested to keep your data safe our platform free from outside manipulation… This legislation, I signed into law WILL lead to a ban of TikTok in the Untied States. Even the Bill’s sponsors admit that that’s their goal,” Chew said in a video posted to TikTok.
He said it WILL lead to a ban because they ain’t planning to sell.
“This bill gives more power to a handful of other media companies,” he added.
*COUGH* Facebook and Google.
And Shou says they’re not going down without a fight.
Shou went on to say that the ban will impact hundreds of small businesses, content creators, musicians, actors etc who depend on TikTok to earn a living.
For us creators outside the US, it obviously affects our ability to reach a US audience, which will hit us in the pocket too, since the US is one of our biggest and most profitable audiences.
Now this is just the latest legal drama to hit TikTok.
First, it was Universal Music Group pulling all their music from TikTok over a contract dispute. That’s why there are only like three songs on every TikTok video right now.
If I hear Texas Hold Em one more time… ugh!!
Then the Italian Government fined TikTok almost 10 million euros for failing to sufficiently protect minors.
Now it’s this potential US ban. And I want to give you some backstory here.
TikTok is owned by a Chinese company called ByteDance. Everybody knows the US and China don’t have the best relationship. The US Government has been trying for years, since Donald Trump was President, to get TikTok banned.
See, the US is one of TikTok’s largest markets, with over 170 million American users, according to the company’s data.
So the US is worried about a Chinese company having access to the personal information of so many US citizens. So, on its surface, this is an issue about data protection and national security.
Some national security laws in China could technically allow the Chinese Government to compel organisations such as TikTok to assist with gathering intelligence. In other words, force them to turn over any customer data.
So the US does have some legit concerns. Plus they’re probably still antsy since that whole surveillance balloon situation last year. Remember when people were freaking out over this strange object floating around. Turns out it was allegedly a Chinese ‘spy balloon’, according to US officials.
Now Tiktok’s parent company, Bytedance, has been adamant that it operates independently of the Chinese government. But the US ain’t buying it.
This new bill would essentially give ByteDance six months to divest TikTok, meaning sell it to another company or be banned.
Now the bill still has to pass the US Senate, which might not be as easy because the Senators have been pushing more for regulations on TikTok instead of an outright ban.
But it’s also an election year in the United States. And both parties probably want to be seen as tough on National Security, which could influence their decision.
And that’s the bottom line.
Ask The Analysts
The Cast David Rose Business Writer, Observer Leovaughni Dillion Investment Research & Sovereign Risk Analyst at JMMB Group
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