US bans ByteDance and will prohibit TikTok app in US unless it is sold

The Senate approved legislation mandating that TikTok's parent company, ByteDance, divest itself of the app within 270 days or risk expulsion from the US market. The bill, previously passed by the House, received President Biden's signature.

Designated as a foreign adversary controlled application, TikTok must be sold to another entity within the specified timeframe. President Biden retains the authority to extend this deadline by up to 90 days if a sale is actively being pursued. This requirement extends to any subsequent applications similarly identified. Failure by ByteDance to comply with the sale mandate would result in the removal of TikTok from US app stores and a prohibition on internet hosting services facilitating its distribution. Violating entities would be subject to civil penalties.

ByteDance plans to challenge the law in court, with CEO Shou Zi Chew aiming to contest the legislation, known as the 21st Century Peace through Strength Act. Chew expressed confidence in their position, emphasizing their resolve to persist despite legal hurdles. However, if ByteDance's legal efforts fail, discontinuing the app altogether appears to be a viable option. Reports suggest that the US market contributes only a fraction of TikTok's global revenue and user base across ByteDance's platforms, making the platform's sale less appealing given potential complications.