TikTok’s future in the United States is hanging in the balance after Congress passed a bill banning the popular social media app. President Joe Biden signed the legislation into law on Wednesday, giving its Chinese-owned parent company, ByteDance, two stark options: sell TikTok to a U.S.-approved buyer or face a nationwide ban.

Legal Battles Loom

While the ban has been signed into law, it could take years before it fully takes effect. ByteDance is expected to challenge the statute in court, a process that could delay the ban for a significant period.

The president can potentially postpone the ban’s implementation by 90 days. Even after that, ByteDance is likely to file a lawsuit, pausing the countdown while the D.C. Circuit Court of Appeals reviews the case. The losing side could then appeal to the U.S. Supreme Court, further extending the timeline. Industry experts predict that a TikTok ban would not be fully enforced until at least 2026.

TikTok has previously stated its intention to fight the ban, arguing that the legislation is unconstitutional and that the company has already taken numerous steps to safeguard the data of U.S. users. The app has begun an aggressive lobbying campaign, highlighting the stories of small-business owners and influencers who rely on its platform for their livelihood.

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The Search for a Buyer

The bill allows TikTok to continue operating in the U.S. if ByteDance finds a U.S.-approved buyer for the app. While some tech giants might be interested, experts believe that regulators in the Biden administration, as well as critics of Big Tech, would not want to expand the power of such companies.

Other potential buyers could include a group led by former Trump administration Treasury Secretary Steve Mnuchin, who announced plans to form an investor group. Activision Blizzard’s former CEO, Bobby Kotick, has also been mentioned as a potential buyer. Experts note that TikTok would likely sell for a lower price than ByteDance’s full valuation, particularly if it is forced to sell without its coveted recommendation algorithm.

ByteDance is unlikely to agree to a sale as the Chinese government views the TikTok algorithm as a national security asset. This significantly reduces the appeal of a forced sale of TikTok to potential buyers.

The Potential Impact of a Ban

Even if TikTok is ultimately banned in the U.S., the impact might be limited. Most TikTok users are already active on other platforms and could relatively easily migrate their content to Instagram, Facebook, or YouTube. Market analysts anticipate that a TikTok ban would lead to Meta (owner of Instagram and Facebook) and YouTube gaining a significant portion of TikTok’s U.S. advertising revenue.

The Path to the Ban

The TikTok ban reflects a growing concern about Chinese influence and the potential negative impact of social media on young people. Lawmakers and law enforcement officials, including FBI Director Christopher Wray, have repeatedly warned that TikTok is a national security threat due to its potential for the Chinese government to collect user data, spy on Americans, and spread misinformation.

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