In response to mounting regulatory pressure in the U.S., TikTok has reportedly decided to remove a key executive, Erich Andersen, who has been at the forefront of the company’s efforts to allay national security concerns.
What Happened: Andersen, the U.S.-based general counsel for TikTok and its Chinese parent company ByteDance Ltd., has been leading discussions with the U.S. government to demonstrate that the app is taking adequate measures to prevent China from accessing U.S. users’ data or influencing their feeds.
Despite these efforts, the company has failed to convince the U.S. government’s interagency panel conducting a security review of the app and lawmakers in Washington. The U.S. House of Representatives on Saturday passed a bill that would require TikTok to be sold by its Chinese parent or face a ban in the US.
Andersen’s role has been gradually reduced over the past year and a half, and TikTok limited his responsibilities in January 2023 when he stopped overseeing U.S. government relations. The company is now preparing for Andersen to exit his current role, reported Bloomberg, citing people familiar with the matter.
The divest-or-ban legislation is rapidly moving towards becoming law, with the Senate expected to pass the measure next week. President Joe Biden has already indicated his intention to sign the legislation, mandating a sale of TikTok within ayear.
Why It Matters: The bill passed by the U.S. House of Representatives could significantly impact the future of TikTok in the country, as it proposes that the app must be sold within a year or face a ban from U.S. app stores. This legislation is part of a larger package aimed at providing aid and bolstering national security measures in support of Ukraine, Israel, and Taiwan.
Meanwhile, prominent figures like Elon Musk have voiced their opposition to the potential TikTok ban, arguing that it contradicts the principles of free speech and expression that the U.S. stands for.
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“In my opinion, TikTok should not be banned in the USA, even though such a ban may benefit the X platform,” Musk stated Friday. “Doing so would be contrary to freedom of speech and expression. It is not what America stands for.”
Meanwhile, Chinese government previously signalled that they would interfere with an effort to divest TikTok. Chinese authorities have stated that the sale of TikTok to U.S. buyers requires approval from the Chinese government, as it involves the transfer of Chinese technological assets.
Content recommendation algorithms, such as those underpinning TikTok’s significant popularity, are included in China’s list of export-controlled items.
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