The video app risks being banned in the US if it does not get new owners.
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US President Joe Biden signed the law on Wednesday which means that Tiktok must get rid of its owner Bytedance within less than a year, to avoid being banned in the US.
The proposal received a majority in the House of Representatives at the weekend, and was also adopted by the Senate this week. Thus, only Biden’s signature remained. The president had announced that he would sign quickly if the proposal was adopted.
The background for the proposal is that many American politicians believe Tiktok may pose a threat to national security, due to its connection to China. Among other things, there is concern that Bytedance may be pressured by the Chinese authorities to hand over American user data.
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The video app has around 170 million users in the US.
The law gives Bytedance 270 days to sell Tiktok. In addition, the president has the option to extend the deadline by 90 days if he sees that there is progress towards a sale, writes Bloomberg.
Tiktok: – We expect to win
Bytedance is owned 20 percent by the Chinese founders and investors, 60 percent by global investors, while the employees own the remaining 20 percent, according to Politico. The Tiktok owner is headquartered in Beijing.
Tiktok has denied throughout that they are a threat, and criticized the bill that has now been passed. Among other things, they have referred to freedom of expression, and the importance the app has for both companies and users.
Tiktok CEO Shou Zi Chew says the company expects to win when they go to court to block the new law.
– Rest assured, we’re not going anywhere. The facts and the constitution are on our side and we expect to win again, said the CEO in a video after Biden signed, writes Reuters.
Signed support package
On Wednesday, Biden also signed the law that allows for extensive military aid to Ukraine and Israel.
– This means crucial support for America’s partners so that they can defend themselves against threats that could shake their sovereignty, said Biden.
The US president said that the US will start shipments of military equipment within hours.
The signing means that a months-long tug-of-war with the Republicans is over. The decision has a framework of 95 billion dollars for Ukraine, Israel and Taiwan. Ukraine gets by far the largest part of the pot, a whopping 61 billion dollars.
– We deliver when it is required of us. We found together and we got it done. Now it is important to pick up the pace, and we are already underway, said Biden.
The first shipment of military equipment will happen quickly, according to US officials. Initially, the aid will most likely consist of air defense equipment, artillery ammunition, armored vehicles and other types of weapons to support Ukrainian forces who have been begging the allies for help at the front since last August.
