The Energy and Commerce Committee 50-0 vote represents the
most significant momentum for a U.S. crackdown on TikTok, which has about 170
million U.S. users, since then President Donald Trump unsuccessfully tried to
ban the app in 2020.
Prior efforts had stalled over the last year amid heavy
lobbying by the company.
House Majority Leader Steve Scalise said on X lawmakers will
vote next week "to force TikTok to sever their ties with the Chinese
Communist party."
TikTok, which says it has not and would not share U.S. user
data with the Chinese government, argues the bill amounts to a ban and it is
not clear if China would approve any sale, or that it could be divested in six
months.
"This legislation has a predetermined outcome: a total
ban of TikTok in the United States," the company said after the vote.
"The government is attempting to strip 170 million Americans of their
Constitutional right to free expression. This will damage millions of
businesses, deny artists an audience, and destroy the livelihoods of countless
creators across the country."
Before the vote, lawmakers got a closed-door classified
briefing on national security concerns about TikTok's Chinese ownership.
Representative Frank Pallone, the top Democrat on the
committee, on Thursday said his hope was the law "will force divestment of
TikTok and Americans will be able to continue to use this and other similarly
situated platforms without the risk that they are being operated and controlled
by our adversaries."
Representative Mike Gallagher, the Republican chairman of
the House select China committee, and Representative Raja Krishnamoorthi, the
panel's top Democrat, introduced legislation to address national security
concerns posed by Chinese ownership of the app.
"TikTok could live on and people could do whatever they
want on it provided there is that separation," Gallagher said, urging U.S.
ByteDance investors to support a sale. "It is not a ban - think of this as
a surgery designed to remove the tumor and thereby save the patient in the
process."
TikTok app logo is seen in this illustration taken, August
22, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights,
opens new tab
TikTok users were flooding Capitol Hill with phone calls
urging lawmakers not to back the measure after the app warned users it could be
banned.
"Why are Members of Congress complaining about hearing
from their constituents? Respectfully, isn’t that their job?" the company
said on X.
Asked if the bill could impact the U.S. operations of
Tencent's (0700.HK), opens new tab WeChat, which Trump sought to ban in 2020,
Gallagher said he would not speculate but said "going forward we can
debate what companies fall" under the bill.
The bill would give ByteDance 165 days to divest TikTok; if
it did not, app stores operated by Apple (AAPL.O), opens new tab, Google
(GOOGL.O), opens new tab and others could not legally offer TikTok or provide
web hosting services to ByteDance-controlled applications.
White House press secretary Karine Jean-Pierre on Wednesday
praised the proposal, saying the administration wants "to see this bill
get done so it can get to the president's desk."
Commerce Secretary Gina Raimondo told Reuters she favored
"a bipartisan comprehensive legislative effort that would allow us to
resolve the very real national security threats" posed by foreign owned
apps including TikTok but did not endorse the House bill.
The app is popular and getting legislation approved by both
the House and Senate in an election year may be difficult. Last month,
Democratic President Joe Biden's re-election campaign joined TikTok.
Democratic Senator Mark Warner, who proposed a separate bill
last year to give the White House new powers over TikTok, said he had
"some concerns about the constitutionality of an approach that names
specific companies," but will take "a close look at this bill.”
The new bill is aimed at bolstering the legal authority to
address TikTok. Trump tried to ban TikTok in 2020 but was blocked by U.S.
courts.
A U.S. judge in late November also blocked Montana's
first-of-its kind state ban on TikTok, saying it violated the free speech
rights of users.
The Treasury-led Committee on Foreign Investment in the
United States (CFIUS) in March 2023 demanded ByteDance sell their TikTok shares
or face the possibility of the app being banned, Reuters reported, but no
action had been taken.
Reuters