H.R. 391: Extend the TikTok Deadline Act

This bill is titled the Extend the TikTok Deadline Act. Its primary purpose is to modify an existing law that governs foreign applications considered to pose a risk to American users. Specifically, the bill seeks to extend the period in which TikTok must be sold to avoid a ban in the United States.

Key Provisions

• The bill proposes to amend the Protecting Americans from Foreign Adversary Controlled Applications Act.
• Currently, TikTok is required to be sold or face a ban within 270 days of a certain process being initiated.
• This bill extends that deadline to 540 days instead.

Context

The existing law was put in place to address concerns about data privacy and national security regarding foreign-owned applications. TikTok, owned by the Chinese company ByteDance, has been under scrutiny for its data handling practices and potential connections to the Chinese government. The intention behind the new bill is to provide TikTok with additional time to either comply with U.S. regulations or to complete an acquisition deal that would transfer ownership to an American company.

Impact of the Bill

If this bill is passed, it would effectively give TikTok more than double the time to meet the requirements outlined in previous legislation before facing a ban. This change could influence ongoing discussions regarding the sale of TikTok as well as the implications for its user base and operations in the U.S.

Relevant Companies

• BDN - If TikTok's potential sale or its ongoing operations are affected by this bill, companies interested in acquiring TikTok or investing in its operations could be impacted by the new extended deadline.
• CVNA - As a tech company that may look to engage with platforms like TikTok for advertising, any changes in TikTok's operational status could affect its marketing strategies and budgets.