The Passed Bill on TikTok Ban

A recent bill introduced in the U.S. House has been passed, which threatens to ban the social media platform TikTok. This measure, known as the Protecting Americans from Foreign Adversary Controlled Application Act, was forwarded by Reps. Mike Gallagher (R-WI) and Raja Krishnamoorthi (D-IL) on March 5, 2025. On March 7, it garnered approval from the Energy and Commerce Committee, which has been concerned over TikTok’s control by a foreign adversary. As TikTok’s parent company, ByteDance, the bill is to compel it to sell its stake, which could lead to the app’s disappearance within six months in the United States. However, the bill also faces challenges in the Senate, and problems like TikTok’s close ties to China also loom in, adding more reason for lawmakers to ban the app due to possible security risks such as alleged data spying by the Chinese government. Although TikTok has assured data protection through its Project Texas, suspicion of user privacy is still a big concern for many in the U.S. government. Analysts see that targeting TikTok for a ban is not a full solution as foreign and domestic companies can access sensitive information from the U.S. through digital trade, and sanctioning only one app won't address broader issues.

The bill proceeds to the Senate amid uncertainty. Senators are divided on its fate and previous attempts to ban TikTok have stalled. A TikTok spokesperson criticized the secretive process, hoping the Senate would consider the impact on the economy and millions of users. TikTok CEO Shou Zi Chew conveyed disappointment, stating the bill favors rival social media firms and harms creators and small businesses. Chew assured users of TikTok’s ongoing efforts to safeguard their data and platform integrity and expressed the company's commitment to legal action to protect its platform. President Biden, previously an advocate for the bill, pledged to sign it if passed, with the White House offering technical assistance in its development and passage through Congress. Despite House members asserting that the bill doesn't ban TikTok, it mandates ByteDance divest the app within six months to keep it available in the United States. If passed, app stores and internet hosts would be barred from supporting TikTok and ByteDance-related apps. Lawmakers cited national security risks due to alleged ties to the Chinese Communist Party, claims refuted by Chew during congressional hearings. However, organizations like the ACLU and Knight Institute oppose the bill, fearing it infringes on First Amendment rights. Trump expressed concerns that banning TikTok would benefit Meta (NASDAQ:META). Donald Trump’s remark, labeling Facebook an “enemy,” stood out, given his past efforts to remove TikTok over national security concerns. In 2020, his administration urged ByteDance to divest the app, prompting Microsoft (NASDAQ:MSFT) to consider acquisition. If the TikTok bill passes, Angelo Zino suggests its U.S. operations could be valued at over $60 billion. Zino speculated that ByteDance might opt to cease TikTok operations in the U.S. Keith Rabois, a notable venture capitalist, warned against Republicans opposing the TikTok legislation. TikTok creators explored diversifying their brands amid the looming ban.

Biden Is Pro-Tiktok Ban

Before the Super Bowl in 2025, President Joe Biden joined TikTok, and his inaugural post sparked interest, dissected by political scientist Maggie Macdonald for its self-awareness. Biden’s entry into the platform amid debates over TikTok’s presence in the U.S. underscored its dual role: a campaign tool and a security concern. The House Select Committee on the Chinese Communist Party proposed a bill mandating ByteDance to divest TikTok, threatening a U.S. ban. The bill advanced to the House floor following a unanimous 50-0 vote. Rep. Troy Balderson labeled TikTok a CCP surveillance tool, while Mr. Chew refuted any connections. TikTok criticized the move, citing potential infringements on free expression and economic impact. Since Biden’s lighthearted debut, his TikTok campaign amassed 274,700 followers and 3.2 million likes. As he faces a tight race against Trump, Biden aims to engage younger voters, crucial for mobilizing traditional Democratic support. Social media expert Aaron Earls emphasized Biden’s direct voter interaction for increased youth turnout. During the State of the Union address, the president’s team shared speech clips on TikTok, signaling his commitment despite legislative concerns. White House Press Secretary Karine Jean-Pierre endorsed the bill, emphasizing outreach while ensuring national security measures. Biden pledged to sign if Congress approves. TikTok rallied users after the bill’s House advancement, prompting calls to lawmakers’ offices.

When Will the Senate Vote for the Bill?

The Senate’s stance on the bill remains to be determined. Senate Majority Leader Chuck Schumer (D-NY) hasn’t committed to scheduling a vote despite bipartisan House support and the White House urging for prompt action. Senate processes typically move slower, and senators are set for a two-week break. Sen. Mike Rounds (R-SD) doesn’t anticipate immediate action, while Sen. Kevin Cramer (R-ND) suggested a prolonged timeline. The Senate Commerce Committee currently holds the bill, where similar proposals have stalled. Still deciding the legislation, the group’s chair, Senator Maria Cantwell (D-WA), mentioned the possibility of a hearing and potential revisions. Cantwell emphasized the need for constitutional adherence but didn’t outline a timeline. Critics argue the bill infringes on the free speech of TikTok’s 170 million users, prompting calls for careful consideration from lawmakers like Sen. Ron Wyden (D-OR). Sen. Ted Cruz (R-TX), the leading Republican on the Senate Commerce Committee, urged Chair Cantwell to schedule a markup swiftly. Cruz highlighted the need to discuss the bill’s language and potential amendments. However, the bill’s fate remains to be determined in the Senate, with Sen. Mark Warner (D-VA) expressing uncertainty about the timeline for any related legislation.

What if the Bill Passes?

If the House bill clears the Senate and gains presidential approval, it will be enacted into law. The legislation would then force ByteDance to face a TikTok ban within 180 days if it doesn’t sell its interest. However, for users doing business on TikTok, the bill could pose some financial and regulatory dilemmas. Mr. Chew also addressed some challenges during discussions with U.S. lawmakers. He remarked that complying with the bill’s requirements was impractical and would ban the app nationwide. Previous attempts to restrict TikTok broadly in the U.S. failed, such as Montana’s ban, which a federal judge deemed unconstitutional.

Banning TikTok May Not Have Any Difference

Calli Schroeder, a senior counsel at the Electronic Privacy Information Center, views attempts to ban TikTok as mere “security theater.” Legislators push such measures to appear proactive despite knowing they don’t tackle the core issues. Banning TikTok wouldn’t substantially impact China’s access to American data. While TikTok is already prohibited on federal and state-issued devices in many states, previous attempts like Montana’s ban faced legal challenges due to constitutionality and freedom of expression concerns. Kate Ruane, an attorney at the Center for Democracy and Technology (CDT), emphasized that banning TikTok won’t enhance data security. Numerous apps, including those owned by Chinese companies like WeChat and Alipay, also collect and distribute user data globally. Anne Toomey McKenna, a cyber law and privacy professor, suggested that singling out TikTok seemed more like political theater than adequate data security and privacy legislation. Numerous foreign and domestic tech companies, including LiveRamp (NYSE:RAMP), gather vast amounts of user data and then trade it globally by third-party brokers. Data collection extends from smartphones and smart speakers to connected cars and dating apps. Social media platforms like Facebook and Instagram may appear free, but users pay with their data. These anonymized data, theoretically used for targeted advertising, often contain detailed personal information. A study found about 2,230 companies shared users’ data with Facebook. Governments worldwide, including the U.S., leverage these data markets to access extensive personal information without traditional legal processes.

Bottom Line

According to Politico, the Federal Trade Commission probed TikTok and ByteDance for misleading U.S. users about data access by individuals in China. Alleged violations of children’s privacy laws were also investigated. With the Justice Department, the FTC may litigate or negotiate a settlement. Even if the Senate approves the bill, TikTok plans to explore legal options before considering selling its U.S. operations. Former Treasury Secretary Steven Mnuchin expressed interest in assembling a group to buy TikTok. However, major tech firms like Meta and Microsoft may refrain due to antitrust concerns. Any sale would also need Beijing’s approval, and the buyer might not gain access to TikTok’s proprietary algorithm. TikTok investors eye an IPO, but its value could decrease if it exits the U.S. market.

On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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文章来源：InvestorPlace

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在当今数字化时代，社交媒体平台的一举一动都备受关注。TikTok作为一款全球知名的短视频社交应用，其在美国的命运更是引发了广泛讨论。美国众议院通过的一项法案，旨在迫使字节跳动出售TikTok在美国的业务，否则将面临禁令。这一举措不仅关乎TikTok自身的发展，也对全球社交媒体格局产生了重大影响。 从政治角度来看，美国政府对TikTok的打压背后有着复杂的政治考量。一方面，以国家安全为由，声称TikTok存在数据安全风险，可能被中国政府利用进行数据间谍活动。然而，TikTok一直强调其数据保护措施，如Project Texas，致力于保障用户数据安全。另一方面，这一举措也被视为美国政府在科技领域对中国的一种战略遏制。 从商业角度而言，TikTok在美国拥有庞大的用户群体，其业务价值不可小觑。如果该法案最终通过，字节跳动面临着艰难的抉择。出售业务可能会面临诸多挑战，包括反垄断审查、数据隐私问题以及失去对核心算法的控制权等。而直接退出美国市场，对于TikTok的全球业务布局和品牌价值也将产生巨大冲击。 对于用户来说，TikTok的禁令将带来诸多不便。许多用户已经习惯了在TikTok上分享生活、获取娱乐和与他人互动。一旦禁令实施，他们将不得不寻找其他替代平台，重新适应新的社交环境。 此外，这一事件也引发了人们对数据安全和隐私保护的深入思考。在全球化的数字时代，数据成为了一种重要的资源，各国政府和企业都在努力平衡数据利用和保护之间的关系。美国政府对TikTok的打压，虽然打着数据安全的旗号，但也引发了人们对其真实动机的质疑。 总的来说，TikTok在美国的命运悬而未决，其未来走向不仅取决于美国政府的决策，也受到全球政治、经济和科技环境的影响。无论最终结果如何，这一事件都将成为社交媒体发展历程中的一个重要案例，为行业未来的发展提供借鉴和启示。 风口星平台将持续关注这一事件的发展，并为读者带来最新的报道和分析。 如今互联网的发展日新月异，各类社交媒体平台层出不穷。在众多平台中，TikTok以其独特的短视频形式和丰富的内容吸引了大量用户。它不仅为用户提供了一个展示自我的舞台，也成为了人们获取信息、娱乐休闲的重要渠道。然而，随着其影响力的不断扩大，TikTok也逐渐成为了一些国家政府关注的焦点。除了美国，其他国家也在对社交媒体平台进行监管和审查，以确保数据安全和符合本国法律法规。这表明，在数字时代，社交媒体平台面临着越来越严格的监管环境，如何在合规的前提下实现可持续发展，是各大平台需要共同思考的问题。