TikTok ban: What happens if the popular app disappears in the US?

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Today on Power FM’s Power Lunch, Pabi Moloi and I tackled a tricky topic: The TikTok ban, its looming deadline, and the app’s future in the United States.

With the January 19 deadline fast approaching, TikTok’s Chinese parent company ByteDance faces a tough decision:

  • Sell its US operations, or
  • Risk a nationwide ban in the US.

More than 170 million US users are bracing for impact, and the debate is now about more than just an app. It’s about privacy, geopolitics, and tech regulation.

Let’s break it down.

Why the U.S. wants to ban TikTok

The US’s biggest beef with TikTok (seemingly) revolves around data privacy and national security.

ByteDance is based in China, where the government could legally compel companies to share user data. The US government sees this as a threat, even describing TikTok as a surveillance tool.

TikTok is being accused of collecting biometric data, user location, and ‘other sensitive information’ which could include browsing habits and contact lists.

However, many have pointed out the double standard.

As I said during the interview, “Facebook and Instagram also collect extensive user data, if not to a larger extent. Those companies are governed by US privacy laws, for whatever that’s worth.”

What happens if TikTok is banned?

If ByteDance doesn’t divest by January 19, TikTok will ‘go dark’ in the US. Existing users will lose access to the app, though their data will likely remain on TikTok’s servers.

TikTok planned for this, urging users in the US to download their data from a dedicated website.

Could VPNs help users bypass the ban?

In theory, yes.

But VPNs often slow down connection speeds. TikTok is such a video-heavy app and it might not be practical for most everyday users.

Is this really about national security?

National security concerns are genuine, but there’s a bigger battle at play: the ongoing tech rivalry between the US and China.

Remember the 2019 Huawei ban? This feels similar.

“It’s […] more about the US just protecting US-based tech companies from foreign competition.”

I am by no means a political expert, but a TikTok ban could strain US-China relations, perhaps even triggering retaliatory actions against American companies operating in China. (Tesla, you good, boo? 👀)

So is this just about data? Or is it about global tech dominance?

The economic impact on users

TikTok isn’t just a social media app; it’s an economic powerhouse. I’ve written extensively about the impact it might have on content creators and influencers, many of whom make a living from TikTok.

An Oxford Economics report shows TikTok contributed $24 billion (R451 billion) to the US GDP in 2023. That’s not small change!

A ban would devastate content creators, influencers, and the 7 million businesses on TikTok.

Larger businesses might have the budget to pivot to other platforms, but smaller creators and companies could struggle to recover.

In April 2024, TikTok’s CEO, Shou Chew, summed it up perfectly:

“Make no mistake, this is a ban. A ban on TikTok and a ban on you and your voice. Politicians may say otherwise but don’t get confused. Many who sponsor the bill admit a TikTok ban is the ultimate goal.”

TikTok ban and the future of social media

If the US pulls the trigger on banning TikTok, it could set a precedent for stricter regulation of foreign-owned social media platforms.

This might lead to:

  • Tougher data privacy standards.
  • Hesitancy, as non-US-based platforms think twice about expanding
    • This could stifle innovation.
  • Companies might adopt stricter practices to avoid similar bans.

At the same time, a TikTok ban might also spark important conversations about data collection and user privacy – conversations that are long overdue.

With the deadline looming, everyone’s playing a waiting game.

As reported by the Washington Post, President-elect Donald Trump (who supported the idea of a TikTok ban in 2020) is now considering delaying the ban.

As of the time of publishing, ByteDance hasn’t announced any plans to sell TikTok.

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Cheryl Kahla Founder and Editor
Cheryl Kahla explores the intersections of tech and society. She covers emerging tech trends, AI, science, and gaming. Outside of writing, Cheryl indulges in martial arts and debating the merits of AI with her cat, Gotham. He is indifferent to the subject.

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