Smiley face
Weather     Live Markets

TikTok and its China-based parent company ByteDance have spent over $7 million this year to prevent Congress from passing legislation that could result in a ban of the social media app in the United States. ByteDance alone spent a record $2.68 million on in-house TikTok lobbyists in the first three months of the year, while TikTok itself spent over $4.5 million on a television and digital ad campaign to push back against potential bans. TikTok officials lobbied Congress and President Joe Biden’s executive office, including the National Security Council and the U.S. Trade Representative, last quarter.

The House recently passed legislation that would give ByteDance about nine months to divest from TikTok or face a ban in the U.S. The Senate is expected to vote on a similar bill on Tuesday. A bill passed in March that would have given ByteDance six months to divest has stalled in the Senate. In addition to in-house lobbying, ByteDance paid veteran lobbyist David Urban $80,000 last quarter to influence Congress on the March bill. Urban’s firm, LGL Advisors, received the highest payment from ByteDance in a single quarter, according to lobbying data. TikTok has also spent over $400,000 on outside lobbying firms in Washington since January 1.

The recent spending on lobbying reflects TikTok’s efforts to educate policymakers about the potential impact of legislation on its 170 million American users. The company has emphasized the importance of maintaining a presence in the U.S. market, given its large user base. TikTok’s lobbying efforts come as lawmakers express concerns about national security risks associated with the app’s ties to China. ByteDance and TikTok spent over $8 million on lobbying in 2023, with the most spending in a first quarter recorded in 2023 at over $1.8 million, according to OpenSecrets data.

It is unclear whether the lobbying efforts will ultimately sway lawmakers in their decision on TikTok-related legislation. The company’s significant spending on lobbying, both in-house and through external consultants, highlights the stakes involved in maintaining its presence in the U.S. market. The outcome of the pending Senate vote on the TikTok bill will determine the next steps for ByteDance and TikTok in complying with potential divestment requirements. The continued scrutiny of TikTok reflects ongoing concerns about the app’s data privacy practices and national security implications, adding to the complexity of the regulatory landscape facing the popular social media platform.

Share.
© 2024 Globe Echo. All Rights Reserved.