What Influencers and Agencies need to know about the “TikTok Ban”
TikTok and the proposed bill, referred to as the “TikTok Ban,” have been widely featured in the media recently after the bill was passed by the House of Representatives last month, just days after it was first introduced. The vote carried 352 to 65, with the majority of both parties voting in favor of the bill, which is notable during such a divided Congress.
If it passes the Senate, the bill will ban applications controlled by entities controlled by foreign adversaries. ByteDance, the Chinese company that owns TikTok, is singled out as an example. Effectively, the bill would require that ByteDance either stop operating TikTok in the United States or sell its American operations to a company in America or a friendly nation. In this post, we will explore the bill’s timeline, support and opposition for the bill, and how agencies and influencers should plan accordingly.
TikTok Ban Timeline
Efforts to restrict or ban TikTok in the United States have been underway for several years, reflecting concerns about data privacy, cybersecurity, and foreign influence. These concerns primarily stem from TikTok’s parent company, ByteDance, a Chinese corporation that critics argue could, and in all probability does, share user data with the Chinese government under China's national security laws.
The first attempt to ban TikTok occurred under President Donald Trump’s administration in August 2020. Citing national security concerns, President Trump issued executive orders to ban transactions with ByteDance, potentially making TikTok unusable in the United States. The proposed ban faced legal challenges and was never fully implemented, as courts issued injunctions blocking the order.
In 2021, the Biden administration put these efforts on hold, choosing to review the situation rather than enforce the Trump administration’s orders. However, concerns persisted on both sides of the aisle, leading to various proposals and measures at the state and federal levels. For instance, several U.S. states have enacted bans on TikTok on government devices, reflecting ongoing apprehensions about security risks. More expansive efforts, such as the first-of-its-kind bill in Montana, are facing legal efforts to prevent the enactment of said bills.
The bill passed by the House of Representatives in March 2023 marks a significant and bipartisan escalation in these efforts, aiming to enforce a more definitive action against TikTok’s operations in the U.S. by addressing the issue of foreign control over apps like TikTok. This support illustrates a broad consensus on the potential threats such foreign-controlled applications pose.
Support for the TikTok Ban
Support for the TikTok ban spans a broad spectrum of U.S. lawmakers. Notably, Senator Marco Rubio has been a vocal proponent of limiting TikTok's operations in the U.S., citing the potential for Chinese data harvesting and influence as a significant threat.
“TikTok allows the Chinese Communist Party to access people’s private data. This is a direct threat not only to our national security interests but also to the American people. I’m proud to continue to lead the bipartisan fight in Congress to ban TikTok, as well as other social media companies that are controlled by the CCP, so long as they are under dangerous foreign ownership.” - Senator Rubio, FL (R)
The bipartisan nature of the support is highlighted by the substantial majority vote in the House of Representatives, with both Republican and Democratic members voting in favor of the bill. Among Democrats, Senator Mark Warner has voiced concerns similar to Rubio's, focusing on the privacy implications and potential for foreign manipulation.
“What I say is, this is not just a security concern for the United States. Canada, Australia, New Zealand, Britain, the European Union have all prohibited TikTok on their government phones because of fear of being spied upon. China, for example, doesn't allow Facebook or Google or other social media platforms to operate in China because they're afraid of that collection of Chinese data. Shouldn't we be concerned about Chinese collection of American data?
And then secondly, the thing that is really concerning me the most is, for many young people, they get all of their news from TikTok, and a slight change in that algorithm — particularly in an election year like this — and you might see come October, that TikTok news is starting to say, "Well you know what, Taiwan is really part of China." - Senator Warner, VA (D)
Opposition to the TikTok Ban
Despite the widespread support in the House, the bill still has to pass the Senate and then be signed by the President to become law. Before that happens, the bill faces significant opposition from those who see it as an overreach that could set a concerning precedent for internet freedom and business operations. Critics argue that banning an app like TikTok might infringe on free speech and hamper the open exchange of ideas and culture that platforms like these foster among millions of American users. Senator Ron Wyden, a Democrat representing Oregon, has been critical of governmental efforts to ban specific apps, advocating for a balanced approach that protects national security without compromising privacy rights and innovation. "The United States should not take actions that undermine the tech economy and Americans’ rights, in response to China’s unacceptable actions," Wyden commented.
Moreover, there is concern about the economic implications of such a ban. TikTok has become a significant platform for many American content creators, small businesses, and marketers who rely on its reach and engagement to build their brands and livelihoods. The opposition argues that a more nuanced approach, focusing on stringent data protection measures and continued monitoring, would be preferable to an outright ban that could disrupt the digital and economic landscape.
What’s Next for the TikTok Ban
Having passed the House, the bill must now pass the Senate before going to the President for signature. As of this week, the bill has been referred to the Committee on Commerce, Science, and Transportation. That Committee is chaired by Senator Cantwell (D), who said she wants to bring the bill to the Senate floor for a vote “sooner as opposed to later.” Senator Cruz of Texas, the Republican Ranking Member of the Committee, has also signaled support for action. Notably, neither Senator stated they would pass the bill without any changes. If the bill is amended and passed in the Senate, it will have to return to the House, and that system will have to repeat until it is shelved or passes both chambers. Furthermore, the fact that we are in an election year could affect this bill's trajectory in several ways. While President Biden recently signaled that he would sign the bill if Congress passed it, Former President Trump has positioned himself against it.
How Influencers and Agencies Should Prepare
Those who work with or on TikTok need to understand that this “TikTok Ban” is NOT an outright ban of TikTok. The bill would ban the Chinese company ByteDance, or any Chinese company, from continuing to operate an app like TikTok in the United States. However, ByteDance could sell its US operations to an American company, and several have already expressed interest. This means that unless the company or Chinese government decides to take a hard stance and simply walk away, taking a significant financial loss, there’s a good chance that even if this bill passes, TikTok will likely continue in some fashion. That’s not a certainty, as even some American investors in ByteDance have signaled that they wouldn’t sell if the bill passed.
If the bill does pass this year, and assuming that ByteDance decides to simply cut off its American arm, we may see the end of TikTok in America. For this reason, it’s important to have a multi-platform strategy that doesn’t completely rely on TikTok. It’s also worth noting that the attention and usage currently going to TikTok will most likely transfer somewhere else, whether that’s an existing platform like Instagram, particularly their Reels, or a new company that may emerge to take TikTok’s place. Both are exciting opportunities for those looking to capitalize on potential disruption to the existing market.
While this bill may or may not pass, we will likely continue to see ongoing efforts to put controls on social media. It’s important to stay tuned in, but it’s worth noting that legislation is slow, and several similar bills have previously died in committee, on the floor and in court. It seems likely that eventually, there will be some new laws curbing the Wild West aspects of social media, particularly with consideration to minors. Until then, we’ll continue to pay attention and plan accordingly.
Update (4/22/2023)
The bill was reconsidered by the House and voted on again last Saturday, this time conjoining the measure with an aid package that will benefit Ukraine, Israel, and U.S. allies in Southeast Asia. The updated bill gives ByteDance a year to sell if the bill eventually passes, as opposed to the previous term of six months. Sen. Schumer (D) indicated that the bill would start to be voted on tomorrow, Tuesday, April 23. According to Reuters, the bill is expected to pass as early as next week.