Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

TikTok would be tough to ban in the US without a new law, experts say

Published 03/22/2023, 07:02 AM
Updated 03/22/2023, 01:16 PM
© Reuters. FILE PHOTO: A person holds a smartphone as Tik Tok logo is displayed behind in this picture illustration taken November 7, 2019. Picture taken November 7, 2019. REUTERS/Dado Ruvic/File Photo

By Alexandra Alper and David Shepardson

WASHINGTON (Reuters) - The Biden administration is under pressure to ban popular Chinese-owned social media app TikTok, but any such move likely hinges on passage of a new law that bolsters the government's authority to regulate speech, experts said.

Pressure is mounting from lawmakers and national security hawks to ban TikTok, which is owned by China's ByteDance, over fears the app could censure content, influence users, and pass Americans' personal data to Beijing, allegations the company denies.

Courts blocked a prior bid by the Trump administration to ban the app in part on the grounds that such a move violated free speech protections.

That means any move to block the app likely depends on passage of legislation like the RESTRICT ACT, a bipartisan bill introduced by Senators this month granting the Commerce Department new power to ban foreign technology that poses a national security risk. That would circumvent the speech protections embedded in existing law, lawyers and China watchers said.

"RESTRICT is really helpful because it gives this completely new, from scratch, legal authority that doesn’t have any of those complications" under other laws, said Emily Kilcrease, a senior fellow at the Center for a New American Security and former deputy assistant U.S. Trade Representative. "It’s a much stronger, cleaner legal authority."

TikTok previously criticized the RESTRICT act, saying "the Biden Administration does not need additional authority from Congress to address national security concerns about TikTok: it can approve the deal negotiated with (the Biden administration) over two years that it has spent the last six months reviewing."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

TikTok chief executive officer, Shou Zi Chew, will testify Thursday before the House Energy and Commerce Committee and face tough questions from those lawmakers who want to ban the app.

TikTok, which FBI director Christopher Wray said in November could be used to "control software on millions of devices," has been in the crosshairs of the U.S. government for years, since powerful Republican Senator Marco Rubio called for its review in 2019.

Courts struck down former President Donald Trump's bid to block TikTok in 2020 with an executive order that granted the Commerce Department similar authorities as the RESTRICT act.

In that instance, the executive order relied on by Trump had a major hurdle: it derived its power from the International Emergency Economic Powers Act, which carves out the import or export of "informational materials," and "personal communication" through the Berman amendment, which sought to protect speech.

Meanwhile, a move by the Committee on Foreign Investment in the United States, a powerful body that scrutinizes foreign investments for national security risks, to force Bytedance to divest its U.S. TikTok business remains mired in negotiations two and a half years later.

White House national security adviser Jake Sullivan endorsed the RESTRICT Act on March 7 saying it "would strengthen our ability to address discrete risks posed by individual transactions, and systemic risks posed by certain classes of transactions involving countries of concern in sensitive technology sectors."

But the bill will likely provide no immediate solutions for those calling for a ban on the app. While the legislation enjoys bipartisan support, no companion bill has yet been introduced in the House. It's also not yet clear when Congress might take it up -- and some think it might be attached to a year-end defense measure.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Some experts said using the new legal tools to ban TikTok could still invite First Amendment challenges.

"Realistically, I don't see this tool coming into play until 2024," said CFIUS lawyer Nicholas Klein with DLA Piper. "And there will most likely be a legal challenge if its used to ban TikTok."  

Latest comments

Giving the government the power to censor and cancel what we see and hear.  Sounds like the alphabet agencies want to legitimize what they did at twitter and probably doing on a lot of platforms.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.