In a first of its kind action, the US is set to ban TikTok from the country after passing an ultimatum to the company inside of a foreign aid spending bill. The US has never before banned a tech company for doing business here.

TikTok, which is one of the world's most popular apps, and has some 170 million American users (or about half the country's population), came into Congress's crosshairs as US-China relations soured during the Trump Administration. Then, last year, CEO Shou Chew was questioned by a bipartisan committee over fears of Chinese surveillance and the app's impact on children. “We do not trust TikTok will ever embrace American values,” said Rep. Cathy McMorris Rodgers, a Republican and the chair of the House Energy and Commerce Committee, during the hearing, reports the New York Times. “TikTok has repeatedly chosen the path for more control, more surveillance and more manipulation. Your platform should be banned.”

Banning TikTok in the US has become a political issue with bipartisan support, but a singular bill has failed to pass the Senate. This week, however, bundled inside a bill sending money and aid to Ukraine and Israel, TikTok's parent company ByteDance has now been given an ultimatum: sell TikTok or face a ban in the United States.

But strong legal standing is already in question. TikTok will undoubtedly challenge the bill in court, which will, at the very least, delay things. The company released a statement reading: "We believe the facts and the law are clearly on our side, and we will ultimately prevail."

As Kate Ruane, director of the Center for Democracy & Technology's Free Expression Project, told NPR, banning TikTok is a violation of free speech. "Congress shouldn't be in the business of banning platforms. …They should be working to enact comprehensive privacy legislation that protects our private data no matter where we choose to engage online."

Of course, not everyone agrees with Ruane's assessment. "Congress is not acting to punish ByteDance, TikTok or any other individual company,” Democratic Senate Commerce Committee Chair Maria Cantwell said of the bill, reports The Verge. “Congress is acting to prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and our U.S. government personnel.”‍

Tiktok's Lobbying

According to CNBC, TikTok and ByteDance have spent a combined $7 million on lobbying efforts this year alone. In 2023, the two companies spent nearly $10 million combined on lobbying. But, as Politico reports, the two companies' spending on Capitol Hill has garnered some not-so-great attention. "The volume of TikTok lobbyists in the last three weeks is eyebrow-raising and suspicious, and lobbyists or lobbying firms taking TikTok money will be viewed differently moving forward,” an unnamed member fo the House China Committee told the site in mid-March.

THE VERDICT:‍

The legal ramifications of a TikTok ban could be widespread on the global tech industry, yet, it seems a lengthy court fight lies ahead before any real action takes place. Should in-house counsels for American tech firms begin planning for retaliatory laws in China?