President Biden signed a bill that would ban TikTok if its Chinese parent company ByteDance fails to sell it within a year. The bill, which includes aid to Ukraine and Israel, passed the U.S. Senate by a 79-18 vote late Tuesday, after overwhelmingly passing the House of Representatives over the weekend.
The bill gives ByteDance nine months to sell TikTok, with a 90-day extension to complete the deal. If ByteDance does not sell TikTok, it will be illegal for app stores to distribute the app in the US.
In a statement emailed to TechCrunch, TikTok said it would challenge the “unconstitutionality” in court.
“The facts and the law are clearly on our side and we believe that in the end we will prevail,” the statement read. “The fact is, we have invested billions of dollars to keep America's data safe and protect our platforms from outside influence and manipulation. It will devastate and silence 170 million Americans. We will continue to challenge this unconstitutional ban while ensuring that TikTok allows Americans from all walks of life to safely share their experiences and celebrate. We will continue to invest and innovate to ensure we remain a space where people can discover and be inspired.”
TikTok CEO Shou Zi Chew shared his thoughts video response On Wednesday, he called the news an “unfortunate moment” and said TikTok “will continue to fight.”
Back in March, the House passed a similar standalone bill that would have banned TikTok or forced a divestment within six months, but the Senate did not take up the bill. This time, the House packaged foreign aid for U.S. allies into the TikTok bill, effectively forcing the Senate to act.
TikTok has argued in recent months that its platform is essential to American creators and small businesses. A few weeks ago, the company released an economic impact report revealing that TikTok generated $14.7 billion for small businesses in the United States.