ByteDance, the parent company of TikTok, finds itself on the verge of confronting new challenges in both the US and the EU as each region addresses respective concerns regarding the popular social media platform.

In the US, a recent bill mandates ByteDance to either divest TikTok to an American company, thereby severing its ties to the Chinese government, or face a nationwide ban. The current owner has a nine-month window to comply and sell the short-form video app, with the sale requiring approval from Chinese officials. However, Beijing has expressed opposition to TikTok's sale in the US, indicating a potentially lengthy process ahead.

Meanwhile, in the EU, TikTok faces a different issue. Although its existence is not under threat, its Lite rewards program is at risk of being banned as soon as April 25th.

The US House of Representatives passed the bill, which has now gained overwhelming support in the Senate. The primary concern driving the push for a TikTok ban or sale in the US is the security of user data, particularly given fears that it could be accessed by the Chinese government. President Joe Biden's administration is expected to take a strong stance on this issue.

Despite being founded by a Chinese entrepreneur and headquartered in Beijing, ByteDance argues that it is not a Chinese firm, as 60% of its shares are owned by global investment firms. TikTok contends that the bill infringes on the free speech rights of millions of Americans and could have significant economic repercussions.

In the EU, concerns center around TikTok's addictive nature, particularly among children. Commissioner Thierry Breton of the European Commission has labeled TikTok "toxic and addictive," criticizing its new rewards program for incentivizing user engagement without proper age verification measures.

As TikTok and ByteDance navigate these challenges, their response strategies remain to be seen.

Source: adapted from an article by Aaron Astle, News Editor for PocketGamer.biz.