The recent legislative actions in Congress to mandate the sale of TikTok are presenting the greatest threat the app has faced in the U.S. so far. This is due to the attached foreign aid bill supporting Ukraine and Israel, along with the extended deadline for TikTok to find a buyer, making it likely that President Biden will support the effort.
While concerns over national security have been raised, there is little concrete evidence that the Chinese government has used TikTok for malicious purposes. The app has attempted to distance itself from its parent company in Beijing, but questions remain about the implications for any potential buyer, particularly with regard to the ownership of TikTok’s algorithm.
The issue of the algorithm’s ownership and the substantial pricetag of TikTok raises further complexities, making it difficult for any potential buyer to navigate the situation. Moreover, the involvement of large tech companies in acquiring TikTok could trigger antitrust concerns in the U.S. regulatory landscape.
Despite doubts about the feasibility of ByteDance letting go of TikTok, the current legislative push delays any definitive resolution until after the upcoming presidential election, allowing more time for stakeholders to find a viable solution.
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