Cover The impact of the TikTok ban is set to affect small businesses that are reliant on the short-form video platform to reach their audience (Photo: Getty Images)
The impact of the TikTok ban is set to affect small businesses that are reliant on the short-form video platform to reach their audience (Photo: Getty Images)
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Social media platform TikTok is up against a new law in the United States that is forcing its Chinese parent company, ByteDance, to divest or face a nationwide ban within the next year
Popular short-form video-sharing app TikTok faces legal challenges in the United States. The US Congress recently passed a law that could ban TikTok in the country if its Beijing-based parent company, ByteDance, does not sell its ownership stake in the platform within the next nine to 12 months.
The main concern raised by US officials is that TikTok could allow the Chinese government, which has been at odds with the US government, to access data on American users or spread propaganda.
TikTok has consistently maintained that it operates independently and protects US data through an alliance with software company Oracle, which protects the data from overseas access.
Chew Shou Zi, TikTok’s CEO, stated that the company plans to fight the potential ban in court, arguing that it violates the freedom of expression rights guaranteed by the US Constitution.
Read more: 5 quotes by TikTok CEO Chew Shou Zi at his latest US Senate appearance
Caitlin Chin-Rothmann, a fellow at the Center for Strategic and International Studies, a think tank affiliated with Georgetown University in the US, said TikTok’s litigation process is expected to be lengthy and could potentially reach the Supreme Court. “Considering that TikTok will mount its legal challenge, the ban would be delayed until after the lawsuit is resolved, which could take about six to eight years. This is not going to be quick.”
An unprecedented ban with extensive challenges and potential loopholes
Above TikTok CEO Chew Shou Zi responding to the ban bill (Video: TikTok)
According to Chin-Rothmann, the passage of this new law is highly unusual and surprising for many reasons, particularly since it is the biggest action the US has taken to block an entire online communications platform with this many users.
While US officials cite national security risks, some question whether banning TikTok is a proportionate response given the lack of publicly available evidence. Neither the US Congress nor the White House have publicly detailed the decision to Americans or held public hearings with third-party experts, aside from a single hearing with TikTok’s CEO in March 2023.
Read more: TikTok CEO Chew Shou Zi is acquiring a $86 Million GCB: All you need to know
Implementing the ban on TikTok could be challenging as US internet users can use a Virtual Private Network (VPN), an internet connection redirected through private servers, to circumvent censors to access the platform. This is similar to how Chinese users access Google or Facebook.
Other reasons that could hinder Bytedance’s divestiture include:
- Finding a buyer with sufficient resources and risk tolerance
- The possibility of Chinese export control laws blocking the sale
- The scrutiny of US antitrust enforcers towards a massive acquisition
- The technical and logistical difficulties of divesting a large platform
- Changes in corporate ownership affecting user experience, rendering TikTok unusable, similar to how Elon Musk’s takeover of Twitter drastically altered its platform
What can users expect next?
Above TikTok could be banned in the US if its parent company ByteDance does not sell its ownership stake within nine to 12 months (Photo: Getty Images)
TikTok could be banned in the US if its parent company ByteDance does not sell its ownership stake within nine to 12 months (Photo: Getty Images)
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“The lawsuit’s outcome remains uncertain,” said Chin-Rothmann. “This case poses intriguing legal questions about the government’s power to limit a widely-used communications app for nearly half the US population because of concerns due to theoretical national security issues. TikTok will likely contend that the law essentially constitutes a ban, making a sale not feasible and that such a ban infringes upon the First Amendment and affects the free speech rights of its estimated 170 million American users.”
In the short term, Facebook and X (formerly Twitter) will benefit if TikTok is indeed banned. But in the long term, it could hurt these companies as it suggests that the US government may start cracking down harder on all social media companies.
Musk has expressed his opposition to the TikTok ban and asserted that such a prohibition is at odds with the principles of free speech and expression. He emphasised his stance on the matter while acknowledging that the move is potentially advantageous to X.
“The US has spent such a long time criticising China’s Great Firewall because it was used as a censorship tool against Facebook and Google,” said Chin-Rothmann. “However, if the US engages in a very similar action today, it does open the door for US-based apps to be banned as well.”
Analysts have estimated that TikTok could be worth as much as $100 billion. Potential buyers for TikTok’s US operations include companies such as Microsoft, Walmart and Oracle.
