Biden signs law mandating ByteDance to sell TikTok within a year to avoid US ban

President Joe Biden has signed a law requiring ByteDance, TikTok China-based parent company, to sell the social media platform within nine months to a year to avoid a potential ban in the US. This law was incorporated into a foreign aid package, giving ByteDance an initial nine months to secure a deal, with a potential three-month extension if significant progress is made.

The TikTok divestment bill arrived at Biden's desk following political negotiations in the House and Senate. The House combined the bill with foreign aid measures, extending the divestment period to nine months, which helped sway undecided lawmakers.

TikTok's CEO, Shou Chew, interprets the legislation as a ban, contradicting claims that the objective is merely to separate the platform from Chinese ownership. Nonetheless, the company plans to challenge the law in court, which could extend the divestment period pending a legal ruling. There are still uncertainties about China's response and whether ByteDance will be permitted to sell TikTok and its crucial algorithm, but it's worth remembering that Microsoft nearly bought TikTok during the Trump administration, though negotiations fell through then.