TikTok says US businesses will lose billions if its US ban is enforced

1 week ago 3

TikTok is facing a ban in the US over national security concerns
TikTok has warned this may have huge consequences for US small businesses
President-elect Trump may yet reverse the ban, although his position remains unclear

The US’s deadline on the proposed TikTok sell-off is fast approaching, and it looks like there may actually be a possibility the social media giant could disappear from US users' devices in January 2025.

As it stands, TikTok is set to be banned in the US on January 19 2025 - or its Chinese parent company will be forced to sell due to national security concerns. President-elect Trump could reverse the ban, but as his administration doesn't take office until January 20, so there is potential for a pretty disruptive gap.

TikTok insists the US does not face imminent threat of harm in regards to national security, but does point out that many US businesses would be ‘irreparably harmed’ by a loss of audience and advertising opportunities.

De-influenced

With a shocking 12 million full-time ‘influencers’ in the US, many of whom will use TikTok as a large source of income, there could be some massive backlash against the ban.

This could have wider reaching consequences than expected for the US economy. The platform has over 170 million users in the US, and it been estimated that small businesses and content creators could suffer huge losses if the ban is enforced,

"Estimates show that small businesses on TikTok would lose more than $1 billion in revenue and creators would suffer almost $300 million in lost earnings in just one month unless the TikTok Ban is halted," TikTok's spokesperson said.

Previously, Donald Trump has vowed to save the platform in order to ‘preserve competition in a market dominated by Mark Zuckerberg’s Meta’, but with Elon Musk, (owner of rival social media company Twitter), by his side during the campaign trail, this may have shifted his view.

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Via ArsTechnica