Liz Hellsing

WHAT'S IN THE TIKTOK BILL? I've read H.R. 7521 (the "TikTok bill") carefully. Here's a summary of the operative provisions: (1) The bill prohibits "foreign adversary controlled applications" from operating in the U.S. The prohibition applies not just to the app itself but to App Stores and internet hosting providers. Effectively, the bill creates a new kill switch preventing distribution of prohibited apps or websites at the app store or hosting level. (Sec. 2(a)(1)) (2) What is a "foreign adversary controlled application" (or FACA)? First, any website, desktop app, mobile app, or VR app operated by ByteDance or TikTok is a FACA. (Sec. 2(g)(3)) (3) Second, almost ANY social/content-sharing website, desktop app, mobile app, or VR app that has more than 1 million monthly active users can be a FACA if two conditions are met: First, if it is "controlled by a foreign adversary." Second, if the President determines it "to present a significant threat to the national security of the United States." Let's unpack each of these. (Sec. 2(g)(1), 2(g)(2)) (4) The term “controlled by a foreign adversary” means that the company (A) is domiciled in, headquartered in, or organized under the laws of a foreign adversary country (i.e. China, Russia, Iran or N. Korea); OR (B) has a 20% ownership group from one of those countries; OR (C) is "subject to the direction or control of a foreign person or entity" from one of those countries. (Sec. 2(g)(1)) (5) The last part of that provision has rightly gotten a lot of attention because "subject to the direction of a foreign person or entity" is vaguer and broader than merely being "under the control of" that person or entity. In theory, if the Attorney General could make a case that a U.S. company was "subject to the direction of a foreign person or entity" from China or Russia, then the President could declare it a FACA. The company would then have to fight that determination in federal court. (6) To make a determination of a national security threat under the Act, the President must issue a public notice and a report to Congress. (Sec. 2(g)(3)) (7) A FACA has 180 days to divest if its owners want to avoid a total ban. The President gets to determine what qualifies as a proper divestiture. (Sec. 2(g)(3), 2(g)(6)) (8) The Attorney General is empowered to investigate potential violations and can pursue enforcement actions in federal district court. The main penalty is a $5,000 per user fine. Thus, for example, Apple could be on the hook for a $500 BILLION fine if all 100 million American TikTok users illegally accessed the app through Apple's platform. The AG may NOT pursue enforcement against an individual user of a FACA. (Sec. 2(d), 2(f)) I consider these to be the most substantive provisions of the bill. I have not sought to describe every detail. You can read the full text here: congress.gov/bill/118th-cong…