What Could Happen If the US Bans TikTok on January 19?
The US Supreme Court has shown skepticism about TikTok’s challenge to a law requiring its sale or ban by January 19, 2024, citing national security concerns over the app’s Chinese ownership. If the law is enforced, here’s what could unfold:
What Happens to the App?
TikTok will likely be removed from app stores, with no new downloads or updates allowed. Users can continue using the app if it's already installed, but without updates, the app will eventually become unusable. Cloud provider Oracle’s involvement could also face disruption as it hosts TikTok’s US data.
How Will Users Be Affected?
TikTok’s 170 million US users may struggle without updates and security patches, but some are already using VPNs to bypass restrictions. Content creators, like Nadya Okamoto, who built businesses through TikTok, worry that a ban will force them to spend more on marketing.
What About TikTok’s Employees?
With uncertainty surrounding the company’s future, TikTok’s 7,000 US employees are nervous about potential layoffs. Despite the looming ban, the company continues to make job offers, leading to confusion among staff.
What Will Advertisers Do?
With TikTok’s US ad revenue expected to hit $12.3 billion in 2024, some advertisers plan to continue investing in campaigns despite the uncertainty. TikTok Shop’s unique e-commerce feature may also keep brands interested, though they’ll monitor the app’s performance closely.
Are There Potential Buyers?
Despite TikTok’s insistence it cannot be sold, billionaire Frank McCourt has secured $20 billion in commitments from investors to buy the app. McCourt plans to run TikTok on open-source technology and generate revenue through e-commerce and AI data licensing.
The future of TikTok in the US hangs in the balance, with various stakeholders hoping for a resolution that could preserve its popularity and financial impact.