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Insight of the Day: Who's in Favor of a Potential TikTok Ban?

The legislation signed into law by President Joe Biden regarding TikTok parent ByteDance requires the divestiture of the U.S. arm of TikTok within 270 days or face a ban from operating in the United States. Here is a summary of the key points mentioned in the provided text:

  • Legislation Purpose: The "Protecting Americans from Foreign Adversary Controlled Applications Act" aims to sever any ties between TikTok, its parent company ByteDance, and the Chinese government to prevent potential surveillance and influence operations on the American public that pose national security threats.

  • Divestiture Deadline: ByteDance has 270 days to divest the U.S. arm of TikTok, with a potential 90-day extension if significant progress towards a "qualified divestiture" is made. This timeframe extends beyond the U.S. presidential election.

  • Political Context: The issue of TikTok's divestiture or ban has become a potential election matter, with former President Donald Trump criticizing President Biden for the decision. While young Americans are more likely to oppose legislation against TikTok, a majority of Republican voters support a potential ban.

  • Public Opinion: A YouGov/The Economist survey shows that two-thirds of Republicans approve of the forced divestiture or potential ban of TikTok, while Democratic voters are divided on the issue. Younger respondents are more likely to oppose a TikTok ban due to their higher likelihood of being TikTok users.

  • Potential Consequences: If ByteDance fails to find a suitable buyer within the specified timeframe, it would be illegal for app stores and web hosting companies to distribute TikTok in the U.S. Finding a buyer may be challenging due to potential antitrust scrutiny, and ByteDance is expected to face legal battles to challenge the legislation.

  • ByteDance's Response: TikTok CEO Shou Chew expressed confidence in fighting against the ban, stating that the legislation aims to ban TikTok rather than facilitate its sale. ByteDance is determined to defend its rights in court and continue its operations in the U.S.

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