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              Congressional                                                     ____
          ~ Research Service






TikTok: Proposed Legislation and

Implications



March 15, 2024

On March  13, 2024, the House of Representatives passed the Protecting Americans from Foreign
Adversary Controlled Applications Act (H.R. 7521). This bill would make it unlawful for any entity to
distribute, maintain, or update a foreign adversary controlled application (hereinafter referred to as a
covered app) within U.S. jurisdiction, unless a qualifying divesture takes place within 180 days of the
bill's enactment. The bill specifically identifies those operated by ByteDance, Ltd., and TikTok as foreign
controlled applications. As of March 15, 2024, the bill is not scheduled for a Senate floor vote.


Background on TikTok

The People's Republic of China (PRC) government holds an equity stake and a board seat in the entity
that conducts ByteDance's core business in China. Due to this, TikTok has faced scrutiny from
policymakers for potential privacy and national security risks. Critics allege the
PRC  influences ByteDance's content policy or may compel it to turn over user data in accordance with
PRC  laws that codify the government's ability to compel data access and require data localization in
China. TikTok has denied these allegations.
TikTok is banned on federal executive agency devices under the Consolidated Appropriations Act,
2023 (P.L. 117-328). Many states have banned the app on some or all state-owned devices. In May 2023,
Montana passed a state-wide ban on Tik Tok, but the ban was blocked by a district court in November
2023.
First Amendment and other legal issues associated with a forced divestiture or ban of TikTok and similar
platforms are discussed in other CRS products.


Overview of H.R. 7521


Forced   Divestiture

H.R. 7521 would subject any entity that distributes, maintains, or updates a covered app to civil penalties
unless a qualifying divestiture takes place within 180 days of the bill's enactment. For TikTok to
                                                               Congressional Research Service
                                                               https://crsreports.congress.gov
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