For the past few months, TikTok has received significant scrutiny from the United States government due to its ownership by the Chinese company ByteDance. On Apr. 24, 2024, former President Joe Biden signed a law requiring ByteDance to sell TikTok by Jan. 19, 2025. If the company failed to comply by the deadline, the app was to be removed from all download platforms, and Internet providers were to be legally required to block access to TikTok on U.S. browsers.
As the deadline approached, TikTok temporarily suspended its services in the U.S. on Jan. 18, 2025. However, the day after statements from President Donald Trump indicating his intention to grant an extension, services were restored. Before taking office on Jan. 20, President Trump issued an executive order giving a 75-day period of non-enforcement of the ban, allowing TikTok to continue operations while ByteDance finds U.S. ownership.
Trump’s role in the TikTok situation has been important, not just because of his decision to extend the deadline, but also because of his history with the app. In 2020, he tried to force TikTok’s sale, saying it was a national security risk because of its ties to the Chinese government. However, his actions could have also been political, since TikTok users had organized campaigns to disrupt his rallies. Now, this extension has raised questions about whether he’s focused on security or if he’s trying to help U.S. companies buy TikTok or win over young users who rely on the app.
Although there is an extension, the potential ban will create significant challenges for creators and businesses that depend on the platform for income and engagement. Many creators have built careers making videos that earn millions of views, bringing sponsorships, attention and ad revenue. According to a report by Forbes, top creators earn millions annually from brand partnerships and collaborations directly tied to their TikTok presence. A ban could remove creators’ central platform, forcing them to rebuild their audiences on other apps.
TikTok’s algorithm is made for helping unknown users become famous overnight, giving them more exposure than from platforms like Instagram or YouTube. This has made a considerable difference for smaller creators. For example, many smaller creators use TikTok to share different and unique content or personal stories that resonate with various audiences, building a strong following. Without TikTok’s algorithm, which is made for each user differently, these creators might struggle to find similar success on other platforms, which often prioritize more known influencers or larger accounts with big followings.
Businesses now use TikTok as a key marketing tool. The platform has over a billion active users, with many in the U.S. being younger. Companies ranging from Fortune 500 brands to small coffee shops use TikTok’s trends and features to reach customers. Business of Apps reported that TikTok’s general revenue hit $16.1 billion in 2023. For small businesses with smaller advertising budgets, TikTok offers a more effortless and cheaper way to reach thousands, if not millions, of potential customers.
TikTok’s unique features allow different creators and companies to interact directly with their fans. They can create collaborative content with other creators and their fans. They can also respond to comments through videos and do different trends, drawing more views and attention to the brand. This content can help people feel more connected to where they buy things from, which is harder to do on other platforms. These interactions are very direct and useful for the companies.
A potential ban could also have more significant economic consequences. TikTok has created a whole system of jobs, from social media managers and content creators to marketing consultants specializing in TikTok trends. Banning the platform would disrupt this, leaving many without any source of income or professional opportunities in the future. For small businesses, which mostly rely on social media managers to create content, the loss of TikTok could be a tremendous burden, forcing them to rethink ways to avoid quickly losing income and customers.
Potential buyers of TikTok have already been speculated, with names like Elon Musk and Kevin O’Leary circulating in discussions. Elon Musk, who purchased X and has a conglomerate of businesses, reportedly expressed interest in adding TikTok as one of his companies. Kevin O’Leary, a businessman and TV personality, has also shown interest, suggesting TikTok’s value as a key player in the social media market. Major corporations like Microsoft and Oracle have similarly explored opportunities in the past.
The TikTok ban is not only about losing a popular, widely-used app. It is also about the app’s impact on people making a living. As the 75-day extension period progresses, the future of TikTok remains uncertain, but it will still affect many people.
