financetom
Business
financetom
/
Business
/
Explainer-What happens now that US TikTok bill has been passed?
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Explainer-What happens now that US TikTok bill has been passed?
Apr 23, 2024 8:26 PM

WASHINGTON (Reuters) - The U.S. Senate on Tuesday passed legislation giving TikTok's Chinese owner, ByteDance, about nine months to divest the U.S. assets of the short-video app, or face a nationwide ban. President Joe Biden said he will to sign the bill into law on Wednesday.

Here is what will likely happen next for TikTok.

TIKTOK CLOCK STARTS

Once Biden signs the bill, a 270-day clock starts during which ByteDance must sell TikTok. If it looks like ByteDance is close to divestment near the end of the nine-month period, the president can authorize an additional 90 days for any deal to be finalized. If the bill is signed into law this week, as expected, the 270-day period will end around the inauguration of the next president of the United States, on Jan. 20, 2025, leaving the decision on an extra three months either to Biden, a Democrat, who is seeking reelection, or Republican front runner Donald Trump. 

TIKTOK SUES

Once the bill is signed into law, TikTok is expected to sue to stop it. TikTok's lawyers are also expected to ask the court for a preliminary injunction.

TikTok would want an injunction barring enforcement of the law to allow its full case challenging the constitutionality of the law to move ahead. It is unlikely that the court proceeding would be complete by year-end.

Last year TikTok took similar legal actions to stop a ban on the app in the state of Montana, where a preliminary injunction was granted. If that scenario is any guide for TikTok's efforts against the United States, the company itself and TikTok users will file separate cases to thwart the U.S. bill.

The bill sets the U.S. Court of Appeals for the D.C. Circuit as the exclusive forum for any legal challenges.

HOW LONG WILL THIS ALL TAKE?

If TikTok successfully obtains a preliminary injunction from the court, the forced sale process is halted, potentially giving TikTok more time to operate freely in the U.S. 

In August 2020, Trump, who was president at the time, sought to ban both TikTok and Chinese-owned WeChat, but was blocked by the courts. In June 2021, Biden withdrew a series of Trump-era executive orders that sought to ban new downloads of WeChat and TikTok.

WILL TIKTOK CHANGE AT ALL?

The TikTok app should not change for its 170 million U.S. users between now and the end of the divestment period in the first four months of 2025. 

WHAT DOES THE CHINESE GOVERNMENT SAY?

China has a list of technologies that would need Chinese government approval before they are exported. Experts said TikTok's recommendation algorithm would fall under the list.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Global aerospace firms turn to India amid Western supply chain crisis
Global aerospace firms turn to India amid Western supply chain crisis
Feb 17, 2025
BENGALURU, Feb 17 (Reuters) - Airbus, Collins Aerospace, Pratt & Whitney, and Rolls-Royce are expanding parts sourcing from India, driving growth in the country's emerging aerospace sector and pushing local firms to elevate their games, industry insiders say. Bengaluru-based Hical Technologies and JJG Aero are among those riding the wave. Hical, a supplier to Raytheon Technology and Boeing ( BA...
PRESS DIGEST-British Business - February 18
PRESS DIGEST-British Business - February 18
Feb 17, 2025
Feb 18 (Reuters) - The following are the top stories on the business pages of British newspapers. Reuters has not verified these stories and does not vouch for their accuracy. The Times -British healthcare property developer Assura has rejected a 1.56 billion pound ($1.97 billion) acquisition bid from KKR. - Two of Britain's biggest banks Barclays ( JJCTF ) and...
FAA fires fewer than 400 workers, transportation chief says
FAA fires fewer than 400 workers, transportation chief says
Feb 17, 2025
WASHINGTON, Feb 17 (Reuters) - The Federal Aviation Administration fired fewer than 400 employees out of its workforce of 45,000, Transportation Secretary Sean Duffy said on Monday, as questions rise around air traffic safety amid a spate of recent plane accidents. Duffy posted the number of layoffs in a social media post message on X, formerly known as Twitter, responding...
FAA fires fewer than 400 workers, transportation chief says
FAA fires fewer than 400 workers, transportation chief says
Feb 17, 2025
WASHINGTON (Reuters) - The Federal Aviation Administration fired fewer than 400 employees out of its workforce of 45,000, Transportation Secretary Sean Duffy said on Monday, as questions rise around air traffic safety amid a spate of recent plane accidents. Duffy posted the number of layoffs in a social media post message on X, formerly known as Twitter, responding to a...
Copyright 2023-2026 - www.financetom.com All Rights Reserved