Policy analyst Ed Mills from Raymond James believes that TikTok may cease operations in the U.S. next year, citing a bill that could force the popular social media platform to divest its U.S. operations.
Speaking on CNBC’s “Last Call” on Monday, Mills said, “Once this was added on to the bills last week, this [became] inevitable,” referring to the TikTok crackdown bill that was included in a larger package aimed at providing aid and bolstering national security measures in support of Ukraine, Israel, and Taiwan.
Mills explained that the bill aims to prevent TikTok from seeking a favorable judge and instead places the case in the DC Circuit Court of Appeal, a court likely to side with Congress and the President. This would allow the forced divestiture to proceed.
The bill has sparked controversy, with TikTok expressing concerns about the potential infringement on the free speech rights of American users. Notable figures such as Edward Snowden and Elon Musk have also expressed their opposition to the proposed TikTok ban.
If the bill passes the Senate, TikTok would have a year to sell its U.S. operations to an American company or face a ban from U.S. app stores.
