TikTok has notified employees of its intent to contest any U.S. legislation mandating the app’s ban or divestiture in court, per a report published by Bloomberg on Monday. The video-making app faces a critical juncture in its primary market.
Michael Beckerman, TikTok’s head of public policy for the Americas, informed U.S. staff that they would pursue legal action once the bill is signed, characterising the legislative manoeuvre as an unprecedented collaboration between the Republican Speaker and U.S. President Biden.
The risk of losing its most profitable market looms large for TikTok after years of struggling to convince the U.S. government that its popular social media app poses no national security threat.
Legislation compelling ByteDance Ltd, TikTok’s Chinese parent company, to divest its ownership interest in the app has been fast-tracked by the U.S. House of Representatives, tethered to vital aid packages for Ukraine and Israel. The Senate is poised for imminent deliberation, with Biden committed to swift enactment.
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Beckerman underscored the purported infringement upon the First Amendment rights of TikTok’s 170 million American users and the impact on the platform’s 7 million small businesses.
While a TikTok spokesperson remained unavailable for immediate comment on the memorandum, Chief Executive Officer Shou Chew has orchestrated an extensive lobbying campaign to dispel security concerns.
ByteDance intends to exhaust all legal avenues before contemplating divestiture, contingent upon approval from Beijing, which opposes a forced sale on tech-export grounds.
