TikTok CEO Shou Zi Chew responds to proposed U.S. ban, hints at lawsuit

TikTok CEO Shou Zi Chew has responded to Wednesday's vote on the proposed U.S. TikTok ban, calling it "disappointing" and indicating that the company may take legal action. It seems as though TikTok isn't ready to disappear without a fight.

The U.S. House of Representatives passed the Protecting Americans From Foreign Adversary Controlled Applications Act on Wednesday, voting 352 to 65 in favour of the proposed legislation banning TikTok. The bill will now be voted on by the Senate, and if approved, then be sent to President Joe Biden to be signed into law.

TikTok users inundated Congress with calls prior to the vote, asking representatives not to pass the bill after an in-app popup informed them of the situation. Now CEO Chew has directly urged users to continue sharing their stories with their senators and "protect your constitutional rights."

"This legislation, if signed into law, will lead to a ban of TikTok in the United States," said Chew in a video uploaded to TikTok's official account and on Twitter/X. "Even the bill sponsors admit that that's their goal. This bill gives more power to a handful of other social media companies. It will also take billions of dollars out of the pockets of creators and small businesses. It will put more than 300,000 American jobs at risk and it will take away your TikTok."

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TikTok's CEO emphasised the good the app has done in promoting small American businesses, establishing content creators, and contributing to the U.S. economy. A study commissioned by TikTok found that the app contributed $24.2 billion to U.S. GDP in 2023, as well as supported 224,000 jobs. TikTok itself also has approximately 7,000 U.S. employees, many of whom are probably feeling a little nervous right now.

Of course, any research funded by the company it's studying must be considered with a few grains of salt. Even so, it's undeniable that numerous small U.S. businesses have received significant boosts thanks to TikTok. Content creators such as popular food reviewer Keith Lee have revitalised some struggling businesses, while going viral on TikTok has helped set others up for success.

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"This process was secret and the bill was jammed through for one reason: it's a ban," TikTok said in a statement after Wednesday's vote. "We are hopeful that the Senate will consider the facts, listen to their constituents, and realize the impact on the economy, 7 million small businesses, and the 170 million Americans who use our service."

Chew stated that TikTok would continue to fight for its survival in the U.S., "including exercising [its] legal rights." Fortunately, the platform already has some case law to rely on should it eventually file a lawsuit. A previous attempt to ban TikTok in Montana was blocked last December after a judge found it unconstitutional, ruling that the legislation blocked free speech and punished the company without a trial.

Why U.S. legislators claim the TikTok ban isn't a ban

Though the legislation would not allow TikTok to continue operating in the U.S. as it has been, the bill does provide an out. TikTok could stay in America if its Chinese parent company ByteDance sold the platform to another corporation, specifically one that the U.S. government doesn't think is "controlled by a foreign adversary."

Chew didn't directly comment on this provision, however it would no doubt be a last resort — if it were even considered at all. 

ByteDance would take a significant hit if TikTok was no longer able to operate in the U.S., and the social media platform would fetch a hefty price if it were put on the market. However, it isn't completely inconceivable that ByteDance might choose to simply shut down TikTok's operations in the U.S. and focus on other countries, rather than set up a thriving rival and furnish it with trade secrets. Withdrawing instead of selling may be a drastic move, but then again so is a TikTok ban.

Few seem to believe ByteDance wouldn't sell if it came down to it, though. The vultures are already circling, with former Activision Blizzard CEO Bobby Kotick having reportedly expressed interest in acquiring TikTok should the legislation pass. He even said as much directly to ByteDance co-founder Zhang Yiming.

On one hand, you don't want to miss out on a deal like this because you weren't quick enough. On the other hand, it feels a little like offering to buy someone's house while they're still trying to put out a raging kitchen fire.

Legislators who voted to ban TikTok are still on TikTok

As reported by Gizmodo, several politicians who voted for the TikTok ban actually have their own accounts, with North Carolina Congressman Jeff Jackson even posting a video less than 24 hours ago. In it, Jackson attempted to justify his apparently hypocritical vote by claiming that TikTok wouldn't really get banned if the bill became law, since Bytedance would just sell the social media platform to a company in a country the U.S. approves of.

"The bill that just passed the House was about telling TikTok they have to sell to another company," said Jackson. "It hasn't passed the Senate, and I don't know if it will. If it does, TikTok will be sold for billions of dollars and will continue to operate."

That seems like a rather big assumption, especially considering ByteDance has given absolutely no indication it would be prepared to sell. 

Also, saying that this bill isn't a ban because TikTok could just sell is a bit like saying you didn't technically murder someone — you just chased them with a knife until you'd cornered them on a cliff, and it was up to them whether to jump.

Unsurprisingly, the comments on Jackson's video have been scathing.

"We’re gonna remember that you voted yes on the Tik tok [sic] ban," popular TikToker Noah Glenn Carter wrote in one of the video's most liked comments. As of writing, it has received over 57 thousand likes.

A ban on Chinese apps

Though the legislation specifically names TikTok and its parent company ByteDance, it would also impact other Chinese apps such as WeChat. U.S. lawmakers have expressed concern about the Chinese government potentially accessing American users' information through such apps, or manipulating algorithms to show content sympathetic to China. 

They have shown much less concern for U.S. authorities behaving in a similar manner, even where there have been proven cases of this occurring. There have not yet been any proven cases of TikTok providing U.S. users' information to China.

"Over the last few years, we have invested to keep your data safe and our platform free from outside manipulation," said Chew. "We have committed that we will continue to do so."

In response to such legislator's concerns, TikTok has invested $1.5 billion and 2,000 employees into walling off U.S. users' data, storing it in the U.S. with U.S. company Oracle. Unfortunately, as evidenced by this latest attempt to ban TikTok, Project Texas appears to have done little to assuage their fears.