TikTok divest-or-ban law signed

April 24, 2024

President Joe Biden signed the Protecting Americans from Foreign Adversary Controlled Applications Act as part of a wider national security supplemental package. The law gives ByteDance 270 days to divest TikTok’s U.S. operations or face a nationwide prohibition from U.S. app stores and hosting services.

Key provisions

• Requires the President to designate foreign adversary-controlled applications that pose national security risks.
• Orders divestment of TikTok’s U.S. assets from ByteDance unless the company wins an extension by demonstrating substantial progress toward a sale.
• Authorizes enforcement through app store and web hosting bans should divestment fail.

Political and legal reactions

• TikTok CEO Shou Zi Chew said the company would challenge the law in court, arguing it violates the First Amendment rights of creators and users.
• Lawmakers who backed the package framed the measure as necessary to prevent Chinese government influence over Americans’ data and content feeds.
• Digital rights and civil liberties groups warned the law could set a precedent for banning social media platforms and urged Congress to pursue broader data privacy legislation instead.

Next steps

• The law sets a February 2025 deadline for ByteDance to finalize a sale, with an optional 90-day extension if the President certifies progress.
• Federal courts are expected to hear constitutional challenges from TikTok and impacted creators in the months following the law’s enactment.
• The administration must craft implementing regulations that outline enforcement mechanisms and potential exceptions for commercial or security partners.