TikTok will fight US bill forcing it to divest from China, removes executive tasked with restricting ban

TikTok is prepared to take up a legal battle if the US House bill which forces them to face a ban or divestiture of the Chinese-owned app becomes law. In a memo to TikTok’s US staff, Michael Beckerman, TikTok’s head of public policy for the Americas, characterised the proposed legislation as an “unprecedented deal” brokered between the Republican Speaker and President Biden.

He affirmed TikTok’s intention to challenge the bill in court once it is signed into law.

Expressing disappointment, TikTok criticised the House of Representatives for leveraging important foreign and humanitarian assistance to push through a ban bill. “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,” TikTok said in a statement.

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TikTok had previously voiced its opposition about similar bills, arguing that they would censor millions of Americans and violate the First Amendment. The company had also contested a state ban on TikTok in Montana, asserting that it infringed upon free speech rights.

The American Civil Liberties Union echoed TikTok’s concerns, opposing the House bill on the grounds of free speech.

As tensions escalate, TikTok is preparing to defend its interests in court, signalling its determination to protect its presence in the US market amidst regulatory challenges.

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TikTok faces the prospect of losing its most lucrative market as the US House of Representatives advances legislation requiring its Chinese parent company, ByteDance Ltd., to divest its ownership stake in the app.

The bill has been fast-tracked and tied to a critical aid package for Ukraine and Israel, with the Senate expected to vote on it soon. President Joe Biden has pledged to swiftly sign the legislation into law.

Michael Beckerman, TikTok’s executive, criticized the proposed divest-or-ban law, labelling it a violation of the First Amendment rights of the app’s 170 million American users and warning of dire consequences for the platform’s 7 million small businesses.

He emphasized TikTok’s commitment to fighting against the legislation, signalling that the company sees this as just the beginning of a lengthy legal battle.

In response to the escalating regulatory pressure, TikTok is reportedly planning to remove a key executive responsible for addressing US government concerns about the app’s ties to China. This move suggests that TikTok is reassessing its approach to navigating national security issues in the US market.

Erich Andersen, serving as the US-based general counsel for both TikTok and its parent company ByteDance Ltd., has been deeply involved in prolonged discussions with the American government. These talks aimed to demonstrate that TikTok has implemented sufficient measures to safeguard US users’ data and prevent any undue influence from China on their content consumption.

TikTok refrained from immediate comment on Andersen’s potential removal, which was first reported by The Information. CEO Shou Chew has been actively leading efforts to convince lawmakers of the company’s commitment to national security.

Reports indicate that ByteDance plans to contest any US ban through legal avenues before considering divestiture. Additionally, any potential deal involving TikTok would require approval from Beijing, which has reaffirmed its stance against coerced sales of tech companies.

(With inputs from agencies)