American legislature could see TikTok banned in the U.S

The U.S. House of Representatives has greenlit a bill that could spell trouble for TikTok's American presence. The legislation mandates ByteDance, TikTok's parent company, to relinquish its majority ownership within six months, failure of which could result in the app being banned in the U.S.. The bill now awaits Senate approval and subsequent presidential sanction to materialise into law, reported the BBC.

Some politicians are worried that TikTok being owned by a Chinese company could be a security risk for the U.S. They think it's not safe for a Chinese-owned company to control a popular app used by so many Americans. Others are concerned about what might happen to American jobs if TikTok has to leave. Apprehensions regarding the bill's ramifications on American businesses and employment, particularly among TikTok content creators, many of whom are fashion and lifestyle creators, have also been vocalised. Nonetheless, Senate leadership remains resolute in advancing the legislation, citing the imperative to address potential risks stemming from TikTok's Chinese affiliations.

TikTok's burgeoning advertising revenue attests to its ongoing strength as a key social media channel, with projections indicating a substantial uptick in earnings in recent years. ByteDance’s valuation of the app is thought to be around 268 billion dollars, but due to all the regulations may find it difficult to sell.