The bill signed by President Joe Biden gives TikTok 270 days (roughly nine months) to find a non-Chinese buyer or face a ban in the United States.
During that time, the app would continue to operate for its roughly 170 million US users.
What will happen in the courts?
The new effort signed by Biden was designed to overcome the same legal headaches and some experts believe the US Supreme Court could be open to allowing national security considerations to outweigh free speech protection, though this is hardly certain.
Who will buy TikTok?
Even Microsoft, owner of the more niche LinkedIn and now the world’s biggest company by market capitalisation, would face a hard look by competition regulators.
Since its first attempt during the Trump administration, the company controlled by Larry Ellison helped TikTok devise a way to satisfy US national security concerns in a scheme called Project Texas, which essentially carves out US data into a stand-alone company while the company remains owned by ByteDance.
What if no one buys it?
Starting around that time, TikTok would no longer be available on the US Apple or Android app stores and, crucially, software updates and bug fixes would no longer take place.
In other words, Tiktok would slowly wither away, with Bytedance unable to update the app, though it could decide to shutter it completely.
What does China say?
Fears are also rife that an alarming precedent is being set and that other Chinese companies will face a similar fate in the future.
The TikTok ban was discussed in a phone call between US President Joe Biden and Chinese President Xi Jinping earlier this month. Source: Getty / Joe Raedle
Who benefits from a TikTok ban?
Both alternatives have been gaining ground in the US market, just as Tiktok appears to be stalling, perhaps affected by doubts about its future.
I believe TikTok has a good chance to win the legal battle in the US courts as they successfully navigated a similar situation under the previous administration. It will be interesting to see how national security concerns will be weighed against free speech rights in this case.
It’s interesting to see how TikTok is willing to take on the US government in court over the ownership issue. The legal battle ahead will definitely be a high-stakes one, and it’s crucial for the future of the app. Let’s hope for a fair resolution that considers both national security and free speech rights.