It’s the news that TikTok fans would dread to hear but the US Congress has just approved the new full TikTok ban across the nation.
President Joe Biden signed the controversial bill that forces the popular social media app to separate from its Chinese parent firm ByteDance and if not, face a complete ban across the US.
As one can expect, the news has shaken America as the fear that lawmakers once had is now turned into a new reality. This means the app must scramble to step away from its Chinese roots and achieve a sale or face the aftermath that not a lot of people wish to witness.
A timeframe of nine months was provided and if required, an extension period of three months could also be given, provided the circumstances need be.
In case that’s not the root that TikTok wishes to follow, their app stores found in different locations around the country will cease to exist in regards to the app’s distribution.
What many find interesting is how the decision has come close to the US Election period which is when the elections for the upcoming new US President are scheduled to take place.
The news has not gone down well with the company’s CEO who chose to respond via a bold video message. This is where Chew Shou Zi sheds light on thoughts regarding how he’d like to challenge the ban that he deems to be unconstitutional while confirming how his app is not going anywhere.
The platform ended up producing close to $14 billion in revenue for small-scale businesses just last year so as per the company’s own economic report, it’s doing a pretty fine job in the US market and any such decision would severely impact the firm.
Today, TikTok confirms that there are close to 170 million users in the country who use the app regularly. So that also means plenty of businesses are bound to be impacted as the ban wouldn’t allow them to reach their desired market if the ban follows through next year.
In the same way, any marketing or investment options would be redirected toward other leading platforms such as those belonging to Meta or YouTube.
Furthermore, the impact seen across several platforms including search and advertising would also need to be considered as the app is said to be a great start for places that initiate search and discovery in the youth such as Gen Z.
Image: DIW-Aigen
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