Cybersecurity Policy Report, TikTok Divestiture Bill Clears Hurdle in House, (Apr 19, 2024)
Legislation that would ban the TikTok app in the U.S. unless TikTok severs its ties with China today cleared a procedural hurdle in the House and is set for a vote tomorrow.
The Protecting Americans from Foreign Adversary Controlled Applications Act (HR 7521), has already cleared the House once (CPR, March 13). But House leadership included a revised version of the legislation in the 21st Century Peace Through Strength Act (HR 8038), which would impose sanctions on Iran, China, and Russia.
HR 8038 is part of a package of foreign aid bills that would provide funding to Israel and Ukraine, and the Senate has already adopted similar legislation. Adding the TikTok legislation to the foreign aid package improves the odds that the TikTok bill will clear the Senate and become law.
The House today voted 316-94 for a resolution from the House Rules Committee that sets the debate rules for the foreign aid package. It will meet tomorrow to separately consider the four bills that make up the package, including HR 8038.
The version of HR 7521 included in HR 8038 contains slight differences from the version passed by the House. For example, it would give ByteDance slightly longer to consummate a sale of TikTok—270 days with a possible one-time extension of 90 days rather than the 180 days in the original bill.
If ByteDance is unable to find a suitable buyer for TikTok—one that is certified as free from influence by a foreign adversary—U.S.-based app stores and providers of Internet infrastructure services would be prohibited from helping TikTok continue operations in the U.S.
Because the revised legislation would give ByteDance more time to arrange a sale, Sen. Maria Cantwell (D., Wash.), chair of the Senate Commerce, Science, and Transportation Committee, announced she would support it. Sen. Cantwell had been viewed as a potential roadblock to Senate passage.
“I’m very happy that Speaker [Mike] Johnson [R., La.] and House leaders incorporated my recommendation to extend the ByteDance divestment period from six months to a year. As I’ve said, extending the divestment period is necessary to ensure there is enough time for a new buyer to get a deal done. I support this updated legislation,” Sen. Cantwell said in a statement.
But TikTok reiterated its opposition to the legislation in a post on social platform X. “It is unfortunate that the House of Representatives is using the cover of important foreign and humanitarian assistance to once again jam through a ban bill that would trample the free speech rights of 170 million Americans, devastate 7 million businesses, and shutter a platform that contributes $24 billion to the U.S. economy, annually,” TikTok said.
TD Cowen’s Washington Research Group said House leaders’ decision to include the TikTok bill in the foreign aid package helped increase the odds of the bill’s passage to 80%.
Adding TikTok legislation to the foreign aid package “makes the House and Senate votes mostly about that funding, not about TikTok,” TD Cowen analysts said in a policy note. “Importantly, we believe TikTok is unlikely to get stripped from the larger package. House passage on Saturday would force the Senate to vote up or down on the whole package—no revisions are possible.”
They noted that the bill had support from Senate Majority Leader Chuck Schumer (D., N.Y.) and President Biden. “If the House passes the bill, the Senate would take it up in the next 1-2 weeks. A filibuster would require a few days of Senate floor time to overcome. But given Schumer's support, Senate passage appears likely,” they said.
TikTok could present a “reasonable case” in court that the law violates the First Amendment but would be unlikely to prevail, they assessed.
News: DataPrivacy DataSecurity FederalLegislation