The potential security threats posed by TikTok, a hugely popular social media app that is owned and operated by the Chinese company Bytedance, has drawn attention in Washington, D.C. for several years.
Former President Donald Trump tried to force a sale of the U.S.-based app to an American company — Microsoft, Oracle and Walmart were three of the companies interested.
Now it looks like there may be some serious headway on passing regulations to ban TikTok from operating, at least in its current form, in the United States.
Read Also: Plain Jane To Bold Glamor: TikTok Filter Takes Over Social Media, But Not For All The Good Reasons
The U.S. House Foreign Affairs Committee voted last week to grant President Joe Biden the power to ban TikTok in the U.S., according to Reuters. Additionally, Democratic Senator Mark Warner is planning on introducing a bill to “ban or prohibit” foreign technology sometime this week.
Who Benefits From A TikTok Ban?
Tencent Holdings (OTC:TCEHY), which owns a stake in Bytedance, traded down about 1.2% Monday. Conversely, American social media company Snap Inc (NYSE:SNAP), which owns and operates Snapchat, traded up 13%.
If TikTok does indeed get banned, many young users will look for short-form content on other platforms like Snapchat. Alphabet Inc (NASDAQ:GOOGL) and Meta Platforms Inc (NASDAQ:META) would also benefit from a TikTok ban as the companies push their respective responses to TikTok: YouTube Shorts and Instagram reels.
Photo via Shutterstock.
