After Ban Approval, What’s Next for TikTok in the US?

TikTok, a popular video platform, recently announced its intention to challenge a new U.S. law that requires it to sever ties with its Chinese owners or potentially face a ban in the country. The law signed by President Joe Biden gives TikTok approximately nine months to find a non-Chinese buyer in order to continue its operations in the United States. The app currently has around 170 million American users and will continue to function during this transition period.

TikTok has stated that it will fight this law in U.S. courts, arguing that it infringes on the right to freedom of expression. The company has previously encountered a similar situation under the Trump administration, where a federal judge temporarily blocked efforts to ban the app, citing concerns over free speech rights. Despite this, finding a buyer for TikTok may prove challenging due to the significant resources required and potential regulatory scrutiny from competition authorities.

If TikTok fails to find a buyer within the specified timeframe, it may face removal from app stores and cease receiving software updates and bug fixes in the United States. This could ultimately lead to the app’s gradual disappearance and potential closure by its parent company, Bytedance. The implications of a TikTok ban extend beyond the app itself, with competitors like Meta and Google poised to benefit from its potential exit from the market.

China has voiced support for TikTok in this dispute, fearing the precedent it may set for Chinese companies being forced to sell valuable assets. The impact of a TikTok ban extends globally, with discussions between President Biden and Chinese President Xi Jinping highlighting the tensions surrounding this issue. Ultimately, the future of TikTok in the United States remains uncertain, with various stakeholders closely monitoring developments in this ongoing legal battle.