US Lawmakers Consider Changes to Bill That Could Give Government New Powers to Ban TikTok

TikTok says it has spent more than $1.5 billion (roughly Rs. 12,400 crore) on rigorous data security efforts and rejects spying allegations.

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By Reuters | Updated: 11 July 2023 12:11 IST
Highlights
  • TikTok has been actively lobbying against the Restrict Act
  • The act was introduced earlier this year in March
  • TikTok is used by more than 150 million Americans

US government in March demanded TikTok's Chinese owners divest their stakes

Photo Credit: Reuters

U.S. lawmakers are considering changes to address concerns about a bill that would give the Biden administration new powers to ban Chinese-owned TikTok, the chair of the Senate Intelligence Committee who has cosponsored the legislation said on Monday.

Democratic Senator Mark Warner told Reuters that aggressive lobbying by the ByteDance-owned short video app TikTok against the Restrict Act "slowed a bit of our momentum" after it was introduced in March.

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Warner said lawmakers have "a proposal on a series of amendments to make it explicitly clear" and address criticisms, including that individual Americans could be impacted or that the bill represents a broad expansion of government power.

"We can take care of those concerns in a fair way," Warner said.

The legislation endorsed by the White House would grant the Commerce Department new authority to review, block, and address a range of transactions involving foreign information and communications technology that pose national security risks.

"I will grant TikTok this - they spent $100 million  (roughly Rs. 820 crore) in lobbying and slowed a bit of our momentum," Warner said, adding that initially it seemed it would be almost "too easy" to get the bill approved.

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TikTok did not immediately respond to a request for comment on Warner's assessment of its lobbying.

In March, Republican Senator Rand Paul blocked a bid to fast-track a separate bill to ban TikTok introduced by Senator Josh Hawley, who said the Restrict Act "doesn't ban TikTok. It gives the president a whole bunch of new authority."

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The Biden administration in March demanded TikTok's Chinese owners divest their stakes or face a U.S. ban. Attempts in 2020 by then President Donald Trump to ban TikTok were blocked by U.S. courts.

Warner said there are a lot of conversations about the bill, adding it could be attached to an annual defense bill or could be part of a China-related bill that Senate Democratic Leader Chuck Schumer wants.

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The need for legislation is clear, he said.

"There have been another three or four apps that have come out that are Chinese controlled so we need a fair rules-based process to deal with this rather than kind of a one-off basis," Warner said.

TikTok, which is used by more than 150 million Americans, says it has spent more than $1.5 billion (roughly Rs. 12,400 crore) on rigorous data security efforts and rejects spying allegations.

The company is fighting a ban by the state of Montana set to take effect on January 1. A judge has scheduled an October 12 hearing on TikTok's request.

© Thomson Reuters 2023


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