4:04 p.m. ET, March 13, 2024
The TikTok bill provides a "totally reasonable" window for divestment, former FTC chair says
From CNN's Brian Fung
It is "totally reasonable" to think that TikTok could complete a sale within six months if the bill were to pass in the Senate and is signed into law, according to a former top US antitrust regulator.
"Six months is a perfectly reasonable timeframe for a divestiture or forced sale. It happens all the time in the antitrust agencies," Jon Leibowitz, a former chairman of the Federal Trade Commission, told CNN.
It is possible the Chinese government could try to block a TikTok sale; officials
said last year the country "firmly opposes" any forced sale of the company. In 2022, the country proposed new regulations governing the sale of social media algorithms to foreign buyers, a move that could give China an effective veto over a potential TikTok deal.
That could complicate and delay a TikTok divestiture, Leibowitz added.
"There are a lot of unanswered questions at the core of this divestiture legislation," he said, "but I actually think the six months is pretty reasonable. Most antitrust attorneys or corporate attorneys who work on divestiture think it’s a pretty fair timeframe."
Remember: The bill that passed in the House Wednesday would prohibit TikTok from US app stores unless the social media platform — used by roughly 170 million Americans — is spun off from its Chinese parent company, ByteDance.
The bill would give ByteDance roughly five months to sell TikTok. If not divested by that time, it would be illegal for app store operators such as Apple and Google to make it available for download.