TikTok Divestment Deadline Set, Legal Challenges Expected

The U.S. Senate has passed legislation giving TikTok’s Chinese owner, ByteDance, nine months to divest the app’s U.S. assets or face a nationwide ban. If ByteDance is close to divestment near the end of the period, the president can authorize an additional 90 days. The bill sets the U.S. Court of Appeals for the D.C. Circuit as the exclusive forum for any legal challenges. TikTok is expected to sue to stop the bill and request a preliminary injunction, halting the forced sale process. The TikTok app is not expected to change for its 170 million U.S. users until the end of the divestment period in early 2025.

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