Congress' concern with TikTok is that it is owned by a Chinese company and, like many social media platforms, collects information about users to create algorithms that can be manipulative. The app and company will be allowed to continue if it is sold to a US government-approved company. — Reuters
The US TikTok ban is set to take effect on Jan 19, 2025, unless the Chinese company is sold to one approved by the US government.
If the ban takes effect, an economic network of American social media influencers and businesses that sell on the platform would be left without one of the main tools they use to make money.
Since its inception, TikTok says they have fostered a billion-dollar industry of social media marketing, where anyone can become an influencer.
One of the first stars to rise on the platform is Norwalk native Charli D'Amelio, whose dancing and lifestyle videos captured the attention of millions. Since her rise to fame, the entire D'Amelio family has launched several business ventures both on and off the platform and moved to Los Angeles. With 155.7 million followers, D'Amelio remains one of the most followed influencers on the platform.
TikTok and the economy
Posting on social media has become a full-time job for people like D'Amelio.
TikTok has created 224,000 jobs both directly and indirectly, according to a commissioned Oxford Economics report on TikTok. In all, the platform contributed US$24.2bil (RM107.79bil) to the US GDP in 2023.
The TikTok ban could impact several industries. First is for creators who use the platform's Creator Fund to make money off posting videos. Creators who meet the criteria, including having at least 10,000 followers, can choose to be a part of the fund that pays them based on views and interaction with their content.
While people are able to make money simply by posting on the app, the real industry is in the marketing opportunities.
Brands will contract creators to promote their products for a fee. The popular and effective marketing tactic has created the adjacent industry of social media marketing agents who help manage brand deals for influencers.
Another way TikTok has contributed economically is through its in-app ecommerce platform, TikTok Shop. From major brands like Stamford-based Conair to small businesses, companies can sell on the app.
The ban would block the 170 million Americans on TikTok from having access to the app.
Why was TikTok banned?
Congress' concern with TikTok is that it is owned by a Chinese company and, like many social media platforms, collects information about users to create algorithms that can be manipulative. The app and company will be allowed to continue if it is sold to a US government-approved company.
Though the law was signed by President Biden in April, TikTok and parent company ByteDance appealed the law based on the First Amendment's protection of free speech. Last Friday, the US Court of Appeals upheld the law.
"In my opinion, the court properly upheld the Act," said Wayne Unger, assistant professor at the Quinnipiac University School of Law. "We must note that there is likely significant intelligence to support the federal government's assertions about the risk that TikTok poses to national security – intelligence that is almost certainly top secret."
On Monday, TikTok appealed its first amendment case to the Supreme Court and has requested the ban be postponed until the case is heard. It's up to the justices to decide if they will hear the case or not.
"The Supreme Court has an established historical record of protecting Americans' right to free speech, and we expect they will do just that on this important constitutional issue," TikTok spokesperson Michael Hughes said in a statement.
TikTokers in Connecticut
A newcomer to Connecticut, TikToker Nara Smith is one of the more recent sensations on the app going viral for her cooking-from-scratch videos, creating dishes like bubble gum or Froot Loops in her kitchen.
Smith and her husband, Lucky Blue, recently bought an 8-acre property in Ridgefield. As models, the Smiths have other careers off the platform but have collected 11 million followers on the platform.
Many creators have prepared for the ban since the Protecting Americans from Foreign Adversary Controlled Applications Act was passed in April, explained Stamford-based creator Samantha Ramsdell, who has 3.8 million followers on TikTok.
"Most content creators have seen the writing on the wall for a while now, so I've diversified my content to multiple platforms: Instagram, Facebook, YouTube, etc," Ramsdell said.
A comedian known as the woman with the world's largest mouth according to Guinness World Record, Ramsdell said she would be OK if TikTok were to go away because she has established several lines of income off the platform.
"TikTok is such a large platform it's hard to believe it would actually be banned," Ramsdell said. "Either way, though, I am not worried about it!"
While larger creators like D'Amelio, Smith and Ramsdell will likely have other streams of income away from TikTok, smaller creators and businesses who use the platform could be less prepared.
"Many Americans will struggle with the outcome of this case, but TikTok has until Jan 19, 2025, to divest from ByteDance," Unger said. – The Middletown Press, Conn./Tribune News Service
