TikTok Will Suspend its US App by Jan. 19: What Could Happen?

TikTok says that it plans to suspend its app for users in the United States as of Sunday, Jan. 19, if the US Supreme Court does not intervene to block a federal ban, sources familiar with the matter tell Reuters. The move could have significant implications not only for the platform, but for the global digital governance landscape.

 "Fragmentation of the internet along national or jurisdictional lines would be a significant impact of this decision," says Milton Mueller, Professor, Georgia Institute of Technology.

The ban comes as a result of the Protecting Americans from Applications Controlled by Foreign Adversaries Act, signed into law in April 2024, as MBN previously reported. The Act requires ByteDance, parent company of TikTok, to sell its US assets by Jan.  19, 2025 to the local market.

US lawmakers and regulators have previously expressed national security concerns about ByteDance, a Chinese company, controlling US user data. In July 2024, the US Department of Justice (DOJ) accused TikTok of secretly collecting US user data and sharing it with ByteDance, allegedly allowing China to manipulate the app's content to negatively influence national public opinion.

The Department of Justice alleges that TikTok not only collected data, but also manipulated the algorithm that determines the content visible in users' feeds to influence public opinion, as MBN previously reported.

In response to the law, TikTok criticized the secretive nature of the legislative action, arguing that it violates the First Amendment of the US Constitution, which protects freedom of speech. It adds that the ban will severely affect its estimated 170 million users in the United States, as well as businesses and content creators.

Potential Consequences of the Ban

If implemented, the law would block new downloads of TikTok in the Apple and Google app stores, but would allow temporary use of the app for current users, says the BBC. However, TikTok has decided that, rather than operate under these restrictions, it will disable the app in the United States. "Users attempting to log in will see a pop-up message with information about the ban and options to download their personal data," reports the BBC.

In addition, the ban would open up opportunities for competitors such as Instagram Reels, YouTube Shorts, and other platforms, which could capture displaced users, content creators, and advertisers. Kelsey Chickering, Principal Analyst, Forrester, says that ad campaigns targeting TikTok would be redirected to Meta and Google, replicating what happened in India following the TikTok ban in 2020. In economic terms, TikTok generated close to $9.4 billion in revenue in 2022. In addition, Amediasocial data shows that content creators in the United States can generate between US$12,000 and US$23,000 per video.

Despite the planned restrictions, users could attempt to circumvent the ban through virtual private networks (VPNs) or changes to the regional settings of their devices. However, the government also contemplates banning hosting services that facilitate access to the app, BBC reports.

Moreover, as previously reported MBN, Chinese Foreign Ministry spokesman Wang Wenbin has warned about the consequences of such measures for the international economic and trade order, stressing that disrupting normal business activities of companies and damaging the confidence of international investors could have negative repercussions for the United States.

Uncertainty about TikTok's future has led to speculation about a possible sale. Although ByteDance has ruled out this option, interest in acquiring TikTok's assets has been expressed by entrepreneurs such as Frank McCourt, McCourt Global, CEO, and Steven Mnuchin, Former Treasury Secretary. Bloomberg reports that there are rumors that Elon Musk is interested in acquiring the platform, although ByteDance called them unfounded.

The ban would also affect ByteDance's other products, such as Lemon8, and raises questions about the viability of content creators who rely on TikTok Shop, a key function of the platform for online sales, BBC reported.

President-elect Donald Trump has signaled his support to TikTok and opposition to the law. However, his ability to reverse the decision depends on the Supreme Court's stance and the cooperation of technology companies.