WASHINGTON, March 7 (Reuters) - The U.S. House Committee
on Energy and Commerce on Thursday is expected to vote on
legislation giving China's ByteDance six months to divest from
short video app TikTok or face a U.S. ban.
Committee approval would set up a vote by U.S. House of
Representatives that represents the first significant momentum
for a U.S. crackdown on TikTok, which about 170 million U.S.
users.
Representative Mike Gallagher, the Republican chairman of
the House select China committee, and Representative Raja
Krishnamoorthi, the panel's top Democrat, on Tuesday introduced
legislation to address national security concerns posed by
Chinese ownership of the app.
"TikTok could live on and people could do whatever they want
on it provided there is that separation," Gallagher told
reporters Wednesday, urging U.S. ByteDance investors to support
a sale. "It is not a ban - think of this as a surgery designed
to remove the tumor and thereby save the patient in the
process."
The bill would give ByteDance 165 days to divest TikTok; if
it did not, app stores operated by Apple ( AAPL ), Google
and others could not legally offer TikTok or provide
web hosting services to ByteDance-controlled applications.
"This bill is an outright ban of TikTok, no matter how much
the authors try to disguise it," a company spokesperson said.
"This legislation will trample the First Amendment rights of 170
million Americans and deprive 5 million small businesses of a
platform."
White House press secretary Karine Jean-Pierre on Wednesday
praised the proposal, saying the administration wants "to see
this bill get done so it can get to the president's desk" saying
it supports addressing "the threat posed by certain technology
services operating in the United States."
The app is popular and getting legislation approved in an
election year may be difficult. Last month, Democratic President
Joe Biden's re-election campaign joined TikTok.
Democratic Senator Mark Warner, who proposed a separate bill
last year to give the White House new powers over TikTok, said
he had "some concerns about the constitutionality of an approach
that names specific companies" but will take "a close look at
this bill."
A U.S. judge in late November blocked Montana's first-of-its
kind state ban on TikTok, saying it violated the free speech
rights of users.
The U.S. Treasury-led Committee on Foreign Investment in the
United States (CFIUS) in March 2023 demanded that TikTok's
Chinese owners sell their shares or face the possibility of the
app being banned, Reuters reported, but the administration has
taken no action.
TikTok says it has not and would not share U.S. user data
with the Chinese government.
The new bill is aimed at bolstering the legal authority to
address TikTok. Biden's predecessor, Republican Donald Trump,
tried to ban TikTok in 2020 but was blocked by U.S. courts.