2 of Amerikaz most wanted
JF-Expert Member
- Jan 13, 2023
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The house has passed a bill that will force TIKTOK 's Chinese parent company to sell the social media platform or face a ban in the US.
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One potential stumbling block to a TikTok sale is that the market for social media services is highly concentrated, antitrust experts say.
That could make it hard for TikTok to find a buyer that US competition regulators could accept.
All four of those tech giants have come under tremendous antitrust scrutiny in recent years, with the Justice Department or the Federal Trade Commission suing each of them for alleged violations of US competition law.
Both federal agencies have made a point of identifying ways that troves of personal data can give the largest tech platforms an anticompetitive edge.
TikTok could have an easier path selling to a company that hasn't raised red flags with antitrust regulators, Kimmelman added.
With the passage of the TikTok bill in the House on Wednesday, this is the closest the United States has come to banning the social media platform on personal devices.
The next closest thing would be a Montana law that bans TikTok on personal devices within the state. That legislation would have taken effect on Jan. 1, but a federal judge blocked it from taking effect late last year.
The Montana law likely violates the First Amendment, wrote District Judge Donald Malloy at the time. The same decision highlighted a debate about whether Montana was impermissibly engaging in foreign policy, a job that is reserved for the federal government.
In a statement on Wednesday’s vote, TikTok said its attention would now shift to the Senate, where the fate of the legislation is unclear.
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A TikTok sale could raise antitrust concerns
From CNN's Brian FungOne potential stumbling block to a TikTok sale is that the market for social media services is highly concentrated, antitrust experts say.
That could make it hard for TikTok to find a buyer that US competition regulators could accept.
"Who's going to buy it? That's the real question," said Gene Kimmelman, a former Justice Department antitrust official. "If it’s Amazon, Microsoft, Google or Meta, I just think you're going to see substantial antitrust concern."
All four of those tech giants have come under tremendous antitrust scrutiny in recent years, with the Justice Department or the Federal Trade Commission suing each of them for alleged violations of US competition law.
Both federal agencies have made a point of identifying ways that troves of personal data can give the largest tech platforms an anticompetitive edge.
TikTok could have an easier path selling to a company that hasn't raised red flags with antitrust regulators, Kimmelman added.
With the passage of the TikTok bill in the House on Wednesday, this is the closest the United States has come to banning the social media platform on personal devices.
The next closest thing would be a Montana law that bans TikTok on personal devices within the state. That legislation would have taken effect on Jan. 1, but a federal judge blocked it from taking effect late last year.
The Montana law likely violates the First Amendment, wrote District Judge Donald Malloy at the time. The same decision highlighted a debate about whether Montana was impermissibly engaging in foreign policy, a job that is reserved for the federal government.
In a statement on Wednesday’s vote, TikTok said its attention would now shift to the Senate, where the fate of the legislation is unclear.