Congress Votes to Ban TikTok Amid Growing Security Concerns and Economic Impact

Congress Votes to Ban TikTok Amid Growing Security Concerns

In a landmark decision, Congress voted in favor of banning the popular social media app TikTok on Wednesday, following its passage last week by the House Energy Committee. The bill requires any company controlled by a “foreign adversary” to be divested within 180 days.

Pressure against the app, owned by Chinese parent company ByteDance, has been mounting for years. Security concerns have focused on the app’s capacity to spread misinformation and ByteDance’s data management practices.

The bill proposes divesting TikTok to a US-based company. If ByteDance refuses to sell, US-based app stores and Web hosting services would be barred from offering the app, with companies facing fines for non-compliance.

While the House overwhelmingly supported the bill, Senate consideration remains uncertain. If passed, it would mark the first legislative attempt to effectively ban a major social media platform like TikTok, which counts approximately 170 million American users.

Issues with TikTok concerning data privacy and data storage extend beyond the US, raising concerns in the UK — where TikTok had to pay a massive fine last year for disregarding data protection for children — and across the EU.

TikTok has already invested $1.5 billion in a restructuring plan, creating a US subsidiary with 1,500 employees amid mounting scrutiny of its Chinese ties.

Adam Marrè, CISO at Arctic Wolf, says TikTok represents a heightened threat operating beyond US regulatory safeguards.

“This lack of oversight means they can use all the data they collect and manipulate their algorithm, subtly shaping public opinion, particularly among the youth, with complete impunity,” he explains.

Narayana Pappu, CEO at Zendata, says TikTok has in the past confirmed that user data is stored in China.

“This ban and potential divestment might change where the US user data is stored,” he says.

Oxford Economics reported last week that TikTok drove $14.7 billion in small business revenue in 2023, contributing $24.2 billion to US GDP along with 224,000 jobs, with significant impact in California, Texas, Florida, New York, and Illinois.

Chris Olson, president at The Media Trust, says that even while the ban is not yet a sure thing, brands that depend on TikTok for most of their revenue should obviously rethink that dependency, noting uncertainty is a business risk.

In conclusion, the decision to ban TikTok reflects the growing concerns over data privacy and national security, with implications for both the app’s users and the broader digital landscape. The debate over the app’s future is far from over, as stakeholders grapple with the complex issues at hand.