TikTok ban in US filed in Senate

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After the US Parliament approved a ban on TikTok in the country on Saturday (20), this Tuesday (23) it will be the Senate's turn to hand over a foreign aid package to confirm the social network's ban. Bite Dance won't sell it in a year.

According to information from CBS, President Joe Biden is expected to receive the plan later this week. Meanwhile, TikTok is asking its users to contact their legislators and ask them not to pass the bill.

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TikTok has appealed to its users not to be banned in the US

• In push notifications sent to its users, the social network argues that “the TikTok bill is a ban on TikTok, regardless of what Congress calls it”;
• The social network also says that Senator Bernie Sanders wants to give the US president new powers to “take away our constitutional right to access TikTok”;
• Also, the project harms small businesses, “Using TikTok to generate 24 billion US dollars. [R$ 123,16 bilhões, na conversão direta] to the American economy”;
• “If you have access to the user base, it's a low-cost exercise,” says Clayton Allen of Eurasia Group. CBS Moneywatch. “But the plan seems to have backfired”;
• Some lawmakers say the practice TikTok uses to ask its users for help only highlights the dangers of the platform.

In a statement, the agency said it was “unfortunate” that lawmakers “used the cover of vital foreign and humanitarian aid” to derail a proposed ban that would crush the free speech of 170 million Americans and cripple seven million businesses. Close the site, which contributes US$24 billion annually. [123,16 bilhões] For the American economy.”

In turn, Biden has already signaled that he will sign the plan once it reaches his desk. Byte Dance will need nine months to organize the sale of TikTok, with an additional grace period of three months.

But Allen insisted the deadline was January 2025, when the new US president's term begins. If former President Donald Trump wins the election and takes office, he may also change his tone toward Biden.

“This will become an issue for the next administration,” Allen said. “Looking at the language of the bill, I'm not sure Trump would be obligated to pursue what the Biden administration wants. He could use this as leverage with China.

Possible buyers include Microsoft, Oracle or private equity groups, according to Dan Ives, an analyst at Wedbush Securities. In March, former US Treasury Secretary Steven Mnuchin said: CNBC He was thinking of forming an investment group to make an offer for TikTok.

But Ives thinks ByteDance is unlikely to abandon its flagship product, the linchpin that makes recommendations based on users' key instructions, interests and viewing habits.

TikTok's value would change drastically without algorithms and making the eventual sale/disposal of TikTok a very complex process, with many potential strategic/financial bidders anxiously waiting for the process to begin.

Don Ives, Wedbush Securities analyst

Also, competitors like Meta could benefit from the plan if it becomes law, Ives points out. Wedbush estimates that around 60% of TikTok users will switch to Instagram and Facebook. Also, Google can benefit as well.