The future of TikTok in the United States hangs in the balance after Congress approved a bill that gives the app's Chinese-owned parent company, ByteDance, two options: sell TikTok to an approved U.S. buyer or face a nationwide ban. President Joe Biden signed the legislation into law on Wednesday, setting the stage for a potential legal battle and a period of uncertainty for the millions of Americans who rely on the platform for entertainment, community, and income.
The ban, which was included in a $95 billion foreign aid package, has sparked outrage among TikTok's creator community, many of whom fear for their livelihoods. "This is my livelihood, this is how I am going to feed my child, this is how many people are feeding their children," said Aubrey, a Pennsylvania-based TikTok creator who posts under the handle Makeupfresh.
James Nord, founder of the influencer marketing platform Fohr, warned that TikTok's disappearance would be an "extinction-level event" for many creators. "Most of them do not have sustainable followings on other platforms," he said. "And they're not going to be able to migrate their following to Instagram."
Despite the passage of the bill, it could take years for the TikTok ban to actually go into effect. ByteDance is expected to challenge the statute in court, potentially pushing back the deadline for divestment by several years. Isaac Boltansky, director of policy for the financial services firm BTIG, predicts that ByteDance will file a suit no later than this fall, effectively pausing the "clock" on any ban while the case is under judicial review.
If ByteDance loses in the D.C. Circuit Court of Appeals, it is likely to request a review by the U.S. Supreme Court, further delaying the implementation of the ban until at least 2026, according to Boltansky.
The bill stipulates that TikTok can continue to operate in the U.S. if ByteDance sells the app to a U.S.-approved firm. However, Boltansky believes that ByteDance is unlikely to agree to any kind of sale, as the Chinese government has indicated that it regards TikTok's powerful recommendation algorithm as a national security asset.
The passage of the TikTok ban comes amid growing tensions between the U.S. and China, as well as concerns about the impact of social media on youth. U.S. officials fear that the Chinese government is using TikTok to access data from, and spy on, its American users, spreading disinformation and conspiracy theories.
Despite the potential ban, some analysts believe that the ultimate impact on TikTok users may be limited. According to surveys conducted by Wedbush and Bernstein, a majority of TikTok users would likely migrate to other platforms like Instagram, Facebook, and YouTube in the event of a sale or ban.
