Current:Home > ScamsNew House bill would require TikTok divest from parent company ByteDance or risk U.S. ban -Clarity Finance Guides
New House bill would require TikTok divest from parent company ByteDance or risk U.S. ban
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Date:2025-04-15 07:25:14
Washington — Fueled by viral videos, the social media app TikTok offers a stage for millions. But soon, the curtain could be coming down on users like Kim Pham, who says she leans heavily on TikTok to lure customers for her noodle company.
"It wouldn't kill us tomorrow, but TikTok as a platform has represented a very kind of meaningful and new way that we reach consumers," Pham said of a potential ban.
For months, lawmakers have warned of national security concerns posed by TikTok's ties to the Chinese Communist Party. Last May, Montana became the first state in the nation to pass legislation banning TikTok entirely. However, that law is still facing legal challenges.
A new bipartisan House bill set for review by the House Committee on Energy and Commerce on Thursday would require TikTok to divest from its Chinese-based owner ByteDance or risk a ban from app stores in the U.S.
"We implore ByteDance to sell TikTok so that its American users can enjoy their dance videos, their bad lip sync, everything else that goes along with TikTok," Democratic Rep. Raja Krishnamoorth of Illinois, one of the bill's sponsors, said in a news conference Wednesday.
There are growing fears the personal information TikTok devours from its users could fall into the hands of the Chinese government.
"The choice is up to TikTok," Republican Rep. Cathy McMorris Rodgers of Washington told CBS News. "They have a choice to make as to whether or not they want to remain with ByteDance, that we know is controlled by the Chinese Communist Party."
TikTok CEO Shou Zi Chew has argued the company already has firewalls in place to protect users' data. And on Wednesday, the company in a social media post blasted the proposal from Congress.
"This bill is an outright ban of TikTok, no matter how much the authors try to disguise it," the statement read. "This legislation will trample the First Amendment rights of 170 million Americans and deprive 5 million small businesses of a platform they rely on to grow and create jobs."
Democratic Rep. Jamaal Bowman of New York also also came out in opposition of the bill Wednesday.
"The rush to ban TikTok sets a dangerous precedent for our country by undermining our freedom of speech and distracts from the real issue: protecting Americans' data and privacy," Bowman said.
- In:
- United States Congress
- Social Media
- China
- TikTok
Scott MacFarlane is a congressional correspondent. He has covered Washington for two decades, earning 20 Emmy and Edward R. Murrow awards. His reporting resulted directly in the passage of five new laws.
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