Bill requiring TikTok sale or ban becomes law in U.S.
President Joe Biden today signed a bill into law that requires TikTok to either separate from its Chinese parent company ByteDance or face a complete ban in the U.S.
What it means. ByteDance has nine months to sell TikTok. If necessary to finalize a sale, that timeline can be extended by an additional 90 days.
- Should ByteDance fail to divest, app stores will no longer be legally permitted to offer TikTok for download.
- Notably, 270 days from now lands on January 19, 2025—just one day before the planned inauguration of the next U.S. President.
What TikTok is saying. CEO Chew Shou Zi released a video addressing the issue, stating the company intends to contest the ban in court, calling it unconstitutional. He added, “We aren’t going anywhere.”
- According to TikTok’s economic impact report released earlier this month, the platform brought in $14.7 billion for U.S. small businesses in 2023.
Why we care. TikTok claims to have 170 million users in the U.S. Brands and businesses could suffer as they would lose access to this audience if the ban takes effect in 2025. Marketing efforts currently on TikTok may then need to shift to platforms like YouTube or Meta-owned properties.
Search and advertising impact. Among younger audiences, particularly Gen Z, TikTok has increasingly become the go-to platform for search and discovery. The platform launched Search Ads in August and introduced Search Insights in March.
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