The U.S. House of Representatives approved a bill to ban ByteDance-owned TikTok unless the company opts to divest. Despite ongoing national security concerns regarding Chinese ownership of TikTok, the bill’s prospects in the Senate are currently uncertain.
Is TikTok Getting Banned in 2024?
According to Bloomberg, some Senate members have opposed the bill, and Chuck Schumer, the majority leader, is yet to endorse it. In contrast, President Biden has already indicated his willingness to sign the bill. Former U.S. President Donald Trump had earlier sought a ban on TikTok. However, he noted to CNBC that a ban on TikTok could mean, “too much power to Meta Platform’s (NASDAQ:META) Facebook.”
TikTok, though, is ready for a possibly lengthy legal battle before considering parting ways with ByteDance. The popular short-content platform has maintained that it does not divulge the personal data of users to Chinese authorities and plans to lobby against the bill in the Senate.
Which Social Media Stock is Best?
Meanwhile, top social-media names such as Meta, and Spotify (NYSE:SPOT) have rallied by around 40% so far this year. Following this rally, the TipRanks Comparison Tool indicates a modest potential upside in both stocks over the next 12 months.
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