Zinger Key Points
- President Biden's signing of legislation puts TikTok under scrutiny, prompting CEO Shou Zi Chew to vow resistance against the ban.
- The bill gives TikTok's parent company 270 days to find new owners or face removal from U.S. app stores.
- Get New Picks of the Market's Top Stocks
U.S. President Joe Biden‘s recent signing of legislation has thrown ByteDance’s TikTok into the spotlight, with CEO Shou Zi Chew saying the platform will fight back.
“Make no mistake, this is a ban, a ban on TikTok and a ban on you and your voice,” the CEO said in a two-minute video posted to TikTok’s main corporate account.
See Also: Analyst Predicts TikTok Shutdown In US By Next Year Ahead Of Senate Vote: ‘Will Not Operate Here…’
Chew’s statement, delivered Wednesday, April 24, continued: “Politicians may say otherwise. But don't get confused. Many who sponsored the bill admit a TikTok ban is their ultimate goal.”
The legislation, part of a $95 million foreign aid package supporting Israel and Ukraine, was widely supported by the U.S. Senate and the House of Representatives.
It gives ByteDance, TikTok’s parent company, 270 days to find new owners. If ByteDance fails to comply, TikTok faces removal from Apple Inc’s AAPL and Alphabet Inc‘s GOOGL Google app stores in the U.S., People magazine reported.
Additionally, there’s a provision for a three-month extension if a sale is in progress by the initial deadline.
ByteDance’s TikTok Fights Back Against Ban
TikTok’s uncertain future stems from discussions that began during the COVID-19 pandemic. Former President Donald Trump initially proposed banning the app in April 2020, a move later paused by the Biden administration in February 2021. Currently, TikTok boasts 170 million American users.
The legislation presents concerns about security, with fears that TikTok could be used for Chinese surveillance or data access. TikTok denies these allegations, and the Chinese government asserts there’s no evidence supporting claims of national security threats.
TikTok plans to challenge the legislation, citing freedom of speech. In his video, Chew expressed confidence in their legal fight: “Rest assured, we aren’t going anywhere.”
“We are confident and we will keep fighting for your rights in the courts… The facts and the U.S. Constitution are on our side, and we expect to prevail again,” he added.
Can I Keep Using TikTok? Exploring The Ban’s Impact
Don’t worry, TikTok won’t just vanish from your phone overnight.
It’s likely to be at least a year before any ban takes effect, with potential legal challenges possibly extending the timeline further. While TikTok has succeeded in court before, this marks a new challenge against federal legislation.
Concerning your TikTok app, it’s unlikely to disappear from your phone immediately. However, if the ban goes into effect it may vanish from Apple and Google’s app stores, meaning no new downloads, updates, or fixes, as per NBC New York.
Over time, this could pose security risks and usability challenges.
Photo: salarko on Shutterstock.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.