The United States Senate (a vote of 79-18) and House of Representatives (a vote of 352-65) have recently passed a significant piece of legislation that could lead to a ban on TikTok, the popular social media platform, if its China-based owner, ByteDance Ltd., refuses to divest its stake. This bill, known as the Protecting Americans from Foreign Adversary Controlled Applications Act (H.R.7521), has sparked a heated debate on national security, data privacy, and the future of social media in the country.
Key Dates and Specifics of the Bill
The Protecting Americans from Foreign Adversary Controlled Applications Act was introduced by Representative Mike Gallagher on March 5, 2024. The bill swiftly moved through the legislative process, with committee meetings held on March 7, 2024. It was passed by the House on March 13, 2024, with a vote of 352-65.
Breakdown of the Bill’s Provisions
The bill targets applications that are controlled by foreign adversaries, specifically focusing on ByteDance Ltd. and its subsidiary TikTok. Here are the main points of the bill:
- Prohibition of Distribution and Maintenance: It would be unlawful for entities to distribute, maintain, or update foreign adversary controlled applications within the United States.
- Data Portability: Before any prohibition applies, the entity that owns or controls the application must provide users with all their data in a machine-readable format.
- Qualified Divestitures: The bill allows for exemptions if a covered application executes a qualified divestiture as determined by the President.
- Definition of Foreign Adversary Controlled Application: The bill defines this as an application operated by entities like ByteDance or other social media companies controlled by a foreign adversary and determined by the President to present a significant threat to national security.
- Civil Penalties: Entities violating the bill are subject to civil penalties based on the number of users.
- Specific to ByteDance
- Divestiture Requirement: The bill mandates that ByteDance must sell TikTok to a U.S. owner within a specified timeframe. Initially, the House proposed a six-month period for the sale, but after negotiations and revisions, this was extended to nine months with a possible three-month extension if a sale is in progress.
- Ban on Algorithm Control: A critical aspect of the bill is that it prohibits ByteDance from controlling TikTok’s algorithm. This measure aims to prevent any potential manipulation of content that could serve foreign interests or compromise user data.
- Presidential Powers: The legislation grants the U.S. President the authority to designate apps as “foreign adversary-controlled applications.” This designation would trigger the requirement for these apps to be sold to U.S. entities within 270 days, extendable to 360 days by the President.
- Legal and Operational Implications: If ByteDance fails to comply with the divestiture requirement, TikTok would face a ban from U.S. app stores and could be blocked by internet service providers in the United States.
Pros and Cons According to Critics
Pros:
- National Security: Proponents argue that the bill is necessary to protect Americans’ personal data from potential exploitation by foreign adversaries like China.
- Data Privacy: The bill is seen as a step towards ensuring the privacy of American users by preventing sensitive data from falling into the hands of foreign governments.
Cons:
- Free Speech Concerns: Critics argue that the bill could infringe on First Amendment rights by effectively banning a platform used for expression by millions of Americans.
- Economic Impact: There are concerns about the potential negative impact on small businesses and content creators who rely on TikTok for their livelihoods.
Legislative Journey and Political Context
- The bill was included in a broader package that also provided substantial foreign aid to Ukraine, Israel, and Taiwan, which helped expedite its passage through Congress.
- It received bipartisan support but faced opposition from some quarters, including concerns about free speech implications and the potential impact on businesses and content creators who rely on TikTok for their livelihoods
- President Joe Biden has signed the bill into law, marking a significant step in the legislative process aimed at mitigating potential threats posed by foreign-controlled applications.
TikTok’s Rebuttal and Current Data Practices
In response to the bill, TikTok’s U.S. team management has provided a rebuttal emphasizing their separation from the Chinese government’s influence. They assert that U.S. user data is not held on Chinese servers. Instead, TikTok claims that American data is stored in Virginia and Singapore, with a significant commitment to route through Oracle’s cloud infrastructure. This arrangement is part of “Project Texas,” which aims to ensure that U.S. user data is protected and remains within the country.
TikTok’s management has also highlighted their efforts to be transparent and maintain a high level of data security, stating that they have never shared U.S. user data with the Chinese government and would refuse to do so if asked. They have hired experts in the field and have independent third parties test their defenses to validate their security standards.
The Protecting Americans from Foreign Adversary Controlled Applications Act represents a significant move by the U.S. government to address national security concerns related to foreign-owned social media platforms. While the bill has its supporters, it also faces criticism and concerns about its implications for free speech and the digital economy. TikTok’s management has made efforts to demonstrate their commitment to data security and independence from Chinese government influence. As the bill moves to the Senate, the future of TikTok in the U.S. remains uncertain, with the potential for significant changes to the social media landscape on the horizon.
