Biden signs bill potentially banning TikTok in U.S.

TikTok

The law gives TikTok’s China-based owner ByteDance 12 months to sell its stake in the firm or risk the platform being shut down

U.S. President Joe Biden has signed a law banning TikTok unless it is sold within a year.

The law is the biggest threat so far to the popular social media platform in the U.S., though it will likely not immediately disrupt its business, due to pending legal challenges and other delays, as NPR noted in its report Wednesday.

The law gives TikTok’s China-based owner ByteDance 12 months to sell its stake in the firm or risk the platform being shut down.

Biden signed the bill after its passage by the House and Senate over the last few days, with supporters arguing the threat of a ban is necessary for national security concerns. The ban was part of a bigger piece of legislation that also included aid to Israel and Ukraine.

Congress is not acting to punish ByteDance, TikTok, or any other individual firm, Sen. Maria Cantwell, chair of the Senate Commerce Committee, said in remarks on the Senate floor Tuesday.

She added: Congress is acting to prevent foreign adversaries from conducting espionage, surveillance, maligned operations, harming vulnerable Americans, our servicemen and women, and U.S. government personnel.

As noted earlier, the possibility of a ban has not stopped brands from levering TikTok’s massive audience of younger consumers to generate engagement and sales.

TikTok users tend to be highly engaged with the platform, spending considerable amounts of time watching and interacting with content, that report stated. This high level of engagement can increase the visibility of branded content and help brands connect with their target audience in a more meaningful way.

Beyond that, TikTok has a thriving influencer community, many of whom have big, loyal followings. Teaming with those influencers can help brands put their products in front of their target audience more effectively and give them greater credibility with potential customers.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Scommerce. The information provided on Scommerce is intended for informational purposes only. Scommerce is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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