What’s next for TikTok after Biden approves ban

President Joe Biden on Wednesday signed into law an initiative that could force TikTok’s Chinese parent company to divest the video-sharing platform, adding to already strained relations between Washington and Beijing.

The legislation, passed by the US Senate on Tuesday, is part of a $95bn security package principally made up of funding for Ukraine, Israel and Taiwan.

It is also set to ban TikTok from app stores unless the platform is sold by its Beijing-based owner ByteDance, igniting a debate about free speech and data security.

The overwhelming support for the measure among lawmakers signals widespread agreement in Washington that TikTok represents a threat to US national security while it is owned by ByteDance.

TikTok has vowed to bring legal action to block the legislation.

Here is what the law means for TikTok and its 170mn users in the US.

How would a ban work?

A ban takes effect in 270 days, unless ByteDance sells TikTok to a non-Chinese company. Web access would be blocked in the US.

The law would work by imposing civil penalties on app stores such as Apple’s App Store and Google Play if they distribute or update TikTok. Internet service providers would be compelled to block access to TikTok on the web.

Although app stores and internet providers would be barred from hosting TikTok, individual users would not be subject to any legal enforcement.

A nationwide ban of an app or website is largely uncharted territory for the US — although there has been some precedent at both state and federal levels in recent years.

The state of Montana passed a bill last year to ban TikTok, also by forcing its removal from app stores accessed from inside the state. However, the bill was blocked by a federal judge in November before it was due to take effect on January 1. Montana is appealing against the decision.

The American government and many individual states have separately banned TikTok on government-owned devices in a bid to keep US data safe from China. Canada and policymaking institutions in the EU have issued similar directives.

What would a ban mean for users?

The TikTok app has already been downloaded to millions of phones in the US — its largest market globally — and it would not disappear from those phones if the ban takes effect. However, existing users would not be able to update the app nor re-download it if they deleted it or wanted to install it on a new phone.

By blocking access to updates, the app would become obsolete over time, but people would not stop using it overnight. TikTok could also still be accessible for users circumventing the law using virtual private networks that encrypt internet traffic and hide IP addresses.

A US ban would have an enormous impact on TikTok’s booming ecommerce market for big brands and small businesses. It has become the biggest player in the rise of so-called social commerce, where algorithms push products that are highly personalised to the interests of individual consumers, as well as “shoppertainment”, in which ads are blended seamlessly into entertainment content.

TikTok says it is used by more than 7mn small businesses in the US. It has higher engagement rates than other social media platforms, which means it offers brands a greater chance of viral success, as well as access to more than 1bn active monthly users globally. A ban could be a good thing for direct rivals to TikTok’s dominance in social commerce, such as Instagram Shopping and Amazon Inspire, which launched in 2022.

It could also benefit other social media platforms if users turn to alternative apps seeking similar experiences. TikTok has become a big source of news in the US: a third of adults under the age of 30 say they get their news from the platform, according to Pew Research.

Is TikTok really a national security risk?

The Chinese government has significant control over companies that operate in its jurisdiction, including being able to force them to hand over any national security-related data. This creates the potential for TikTok to be used by China to collect foreign intelligence, although there is no evidence that TikTok’s commercial user data has been used in this way.

As part of a plan to avoid a divestment, TikTok has over the past three years spent more than $1.5bn working on “Project Texas”, a corporate restructuring plan to safeguard US user data and content from Chinese influence through a partnership with American cloud software group Oracle. The standalone unit, which voluntarily walls off American data, is up and running but has failed to persuade US lawmakers that the app is safe.

TikTok collects vast amounts of personal information from its US users that help it push targeted content and ads. Cyber security experts have identified TikTok’s ability to track users’ locations, contact lists, personal details and IP addresses, and a clause in its privacy policy that allows it to collect biometric data including “faceprints and voiceprints”, as potential risks to privacy and broader national security. However, several privacy researchers have concluded that TikTok does not collect any more data than other mainstream social networks.

TikTok’s chief executive Shou Zi Chew has said that the Chinese government has never asked TikTok for its data and that it would refuse such a request. But he conceded that China-based employees at ByteDance may have access to some US data from the app.

There are also concerns that Beijing’s ability to access TikTok’s algorithms could allow it to influence what users see on the platform, including pushing disinformation and propaganda, which would be a particularly significant issue during an election year in the US.

What can TikTok do to stop a ban?

Shortly after Biden signed the legislation on Wednesday, TikTok put out a statement saying it would file a legal challenge against what it described as an “unconstitutional law”. Such a suit needs to be brought within 165 days of the bill becoming law.

The company sued the US government in 2020 when then-President Donald Trump issued an executive order to block the app from operating in the country, and gave ByteDance 90 days to divest from its American assets and any data that TikTok had collected in the US. A judge blocked it hours before it was to take effect, and Biden rescinded Trump’s order when he took office.

The most obvious way for TikTok to avoid a ban is through a sale that separates the app and its US user data from its Chinese parent company. However, this is unlikely. In 2020, China updated its export control rules that in effect give Beijing a say in any deal that would sell Chinese technology to an American buyer. Last year, China’s commerce ministry said it would “firmly oppose” a forced sale of TikTok.

Chew has proposed multiple alternative measures to a sale for allaying US national security concerns, including the Project Texas plan and a potential American stock market listing of TikTok.