US Enacts Legislation to Prohibit TikTok Unless Sold

US President Joe Biden has enacted a comprehensive national security package, which includes a provision compelling ByteDance, a China-based company, to divest its ownership of TikTok or face a ban on the app in the United States. The 'Protecting Americans From Foreign Adversary Controlled Applications Act' stipulates a 270-day deadline for the sale, with the possibility of a 90-day extension at the discretion of the president, provided certain milestones toward a sale have been achieved. Although the law specifically targets ByteDance and TikTok, it may also apply to other entities deemed 'controlled by a foreign adversary' if they exceed 1 million monthly active users and are deemed a significant threat to national security by the president. In response to the legislation, TikTok has announced plans to challenge the law in court, characterizing it as an unconstitutional ban and expressing confidence in the company's position, citing significant investments in safeguarding US user data and maintaining the platform's independence from external influence.