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In brief: News that TikTok could escape the US ban that will be introduced on Sunday has brought joy to the millions of people who use the app in the US. But it's unlikely that rival platforms, especially Meta, will be celebrating. It's estimated that Mark Zuckerberg's firm would bring in up to $3.38 billion from freed up ad revenue should TikTok disappear from app stores.
On January 19, the day before Donald Trump is inaugurated, TikTok will be banned in the US as it has failed to divest its US operations. The ban is the result of a bill introduced last year designed to "protect the national security of the United States from the threat posed by foreign adversary controlled applications."
If the ban does come into effect and TikTok is removed from the Google Play and Apple App stores, its updates stop being rolled out for US users, or the US app is shut down altogether, one of the biggest beneficiaries will be Meta's social networks.
According to eMarketer (via Business Insider), TikTok generated $12.34 billion in US ad revenue in 2024. If the ban leads to the company losing 50% to 70% of said ad revenue, that leaves $6.17 billion to $8.64 billion worth of ads looking for a new platform.
The analysts forecast that Meta could see its ad revenue increase anywhere between $2.46 billion and $3.38 billion as a result of a TikTok ban. It could also give Meta's earnings per share a boost of up to 9%. YouTube and Snapchat would also benefit financially.
Their opinions on banning TikTok likely differ
US TikTok users are preparing for the worst. Many are jumping over to another Chinese social media app, RedNote, which you can download safely and securely right here. There's also been a 216% increase in the number of people learning Mandarin on the Duolingo language-learning app.
There is some good news for the TikTok faithful. While the Supreme Court is expected to uphold the ban, Trump recently said he is "considering" signing an executive order shortly after he takes office that would suspend enforcement of the law for 60 to 90 days.
Another piece of news that should cheer up TikTok users comes from NBC. It claims that the outgoing Biden administration does not plan to levy billions of dollars in fines against companies that allow access to TikTok in the US, deferring implementation of the law to the Trump administration.
Senators Ed Markey, Cory Booker, and Ron Wyden, all of whom voted for the Protecting Americans from Foreign Adversary Controlled Applications Act last year, are also pushing for an extension to the ban's deadline. That would give TikTok time to find a way to keep its US operations afloat – assuming Trump doesn't convince Congress to repeal the law – even if it means selling its US business to Elon Musk.
Possibly the most telling sign that there's hope for TikTok is Meta's and Snap's share prices, which fell yesterday amid reports of the app potentially being saved.