Financial disclosures show that members of Congress who voted for the so-called “TikTok ban” last week may own between $29 million and $126 million worth of stock in rival technology companies, according to financial disclosures from Quiver Quantitative, a firm that tracks investments in Congress.Among the 352 members of the House of Representatives Who voted “yes” to the bill44 people reported holding shares in companies including Amazon, Google, Meta, Microsoft and Snap — all of which could benefit if TikTok is forced to sell or is banned outright.
Details of these investments have been difficult to obtain because Congress failed to make their financial disclosures searchable. Quiver Quantitative can only parse online applications. Some members manually submitted financial disclosure information that was not present in the data set. There are some other considerations to consider. Members of Congress must report stock transactions within 45 days and disclose their overall stock holdings annually. Since there is a grace period in both cases, the latest information dates back to earlier this year, before the TikTok vote. Officials also don’t have to report the exact value of those investments, but must disclose a range (for example, $15,001 to $50,000 in Microsoft stock). The stock’s value has also changed since the report was filed.
Still, the data provide a useful indication of Congress’ financial health. “Even if members of Congress were able to make completely impartial decisions without regard to personal interests, I think even the mere possibility of a conflict of interest would be enough,” said Christopher Kardatzke, co-founder of Quiver Quantitative It’s harmful.”
The list of tech investment representatives who voted for the bill includes 21 Democrats and 23 Republicans, including Speaker Nancy Pelosi (D-Calif.) and Rep. Dan Crenshaw (R-Texas) people) and other big shots.
Pelosi tops the list with disclosed technology investments worth $15 million to $76 million. Other top congressional tech investors include Rep. Josh Gottheimer (D-N.J.), who holds $6 million to $31 million in tech stocks, and Rep. Daniel Goldman (D-N.Y.), The latter holds between $2 million and $8 million. Top Republican investors include Rep. Kevin Hearn (R-Okla.), who disclosed more than $500,000 to $1 million worth of tech stocks; Rep. David Kustoff (R-Tenn.) ), disclosed technology stocks valued at approximately $300,000 to $800,000. share.
“Your insinuations are completely ridiculous and lack basic research. In October 2022, Rep. Crenshaw purchased 20 shares of Google stock for as much as $2,082 and for as much as $1,349,” said Corry Schiermeyer, spokesman for Rep. Crenshaw. Purchased 10 shares of META stock at a price of $1,807 and 15 shares of Amazon stock at a price as high as $1,807. “. “He has not traded any of those stocks since then. Suggesting that he engages in insider trading borders on defamation because you are accusing him of a crime without any facts to back it up. ” It’s worth noting that Crenshaw’s self-reported stock holdings are relatively small compared to some of his colleagues.
Other members of Congress named in this article did not immediately respond to requests for comment.
The fact that members of Congress own tech stocks is not proof of corruption or bias. The problem, said Debra Palin, policy director at the advocacy group Citizens for Responsibility and Ethics in Washington, is that Americans even have to first ask whether politicians’ financial interests influence their decisions.
“Today’s news that members of Congress who voted to ban TikTok own millions of dollars in company stock that stand to benefit financially if TikTok is forced to sell or leave the United States builds on a pattern of conduct across industries, That includes the pharmaceutical industry, the airline industry and the defense industry,” Palin said. “Voters want to know if the representatives they elect are voting in the best interest of their constituents, or in the best interest of their financial bottom line.”
Since 2020, politicians from both parties have campaigned hard against TikTok, accusing the company of stealing user data from the Chinese Communist Party. The government also accuses TikTok of manipulating its algorithm to advance China’s geopolitical agenda.
A TikTok spokesperson declined to comment for this article.
“The reality is that TikTok’s parent company, ByteDance, is directly connected to and controlled by the Chinese Communist Party, which obtains data from the American people and can use that data against us,” Schiermeier said. “TikTok being owned and operated by China is a complete national security threat.”
Like most large Chinese companies, TikTok parent company ByteDance has ties to the Chinese Communist Party. However, the public has never been provided with any concrete evidence that TikTok shared data with the Chinese government, nor that China interfered with the content of the U.S. version of the TikTok app.
Some elected officials, e.g. Sen. Rand Paul (R-Ky.) said that’s because the concerns are hypothetical, and this evidence does not exist.Reports also show that U.S. apps such as Facebook, Instagram, Snapchat, X/Twitter, and YouTube are all partnering with Chinese advertising technology companies, which means They have sent US user data to servers in China. This means that US-based apps expose sensitive information to similar risks.
If the government succeeds in cracking down on TikTok, it would be a huge boon for Meta and Snap, but experts and analysts agree that other major players in the tech industry could also benefit.
TikTok doesn’t just make money from ads.It also has a growing e-commerce business that sells products directly to consumers and is the primary place where consumers discover products first
“Meta and Snap will be the obvious beneficiaries, people have been looking for products to buy on TikTok. If this stops, the likelihood that they will find the products on Amazon will go up.” RBC Capital ) said stock analyst Brad Ericson. “TikTok’s volume may not have a significant impact on Amazon’s business, but it helps directionally. YouTube will definitely benefit as well.”
TikTok is the only real threat to Google YouTube, and recent reports indicate that more and more Young people use TikTok as a search engine instead of Google. Amazon, TikTok and Google are also competitors in the digital advertising market, particularly in retail advertising, although Google is the clear leader. Overall, Microsoft and TikTok are not direct competitors. However, when former President Trump tried to force a sale of TikTok in 2020, Microsoft was the top contender to acquire TikTok. If the app comes back to the market, Microsoft could become an acquirer.
Amazon, Google, Meta, Microsoft and Snap did not immediately respond to requests for comment.
The bill does not directly call for a ban on TikTok. Instead, it would force TikTok’s Chinese parent company ByteDance to sell the app.There are countless companies and Investors willing to seize the opportunity to buy TikTok. TikTok, however, insists the bill is a thinly veiled ban. The sale took only six months, which was far too short a timeframe for such a large and complex business transaction.
However, there is no guarantee that the bill will pass.House of Representatives mobilize TikTok legislation was introduced quickly, introduced and passed overwhelmingly in just 8 days. But opposition to interference in TikTok’s business has been much louder in the Senate, where Democratic Majority Leader Chuck Schumer said he was unsure whether to bring the bill to a vote.However, several prominent senators Call on the government to declassify information Information about TikTok’s reach and reach was shared during a recent intelligence briefing.