The TikTok Sell or Ban Bill has officially been enacted into law by President Joe Biden, and it has significant implications for both TikTok and its users. Under this law, TikTok’s parent company, ByteDance, is required to divest from the Chinese company or face a complete ban in the United States. The deadline for divestment is set at nine months, with a possible extension of 90 days if needed.
If ByteDance fails to comply with the divestment requirement, app stores will no longer be legally allowed to distribute TikTok. This means that TikTok will essentially be inaccessible to users in the U.S. This move could have a profound impact on the 170 million U.S. users of TikTok, as well as brands and businesses that rely on the platform for marketing and reaching their target audience.
In response to the ban, TikTok’s CEO Chew Shou Zi posted a video challenging the constitutionality of the ban and stating that they are not going anywhere. It remains to be seen how TikTok will navigate this situation and whether they will take legal action against the ban.
The potential ban of TikTok in 2025 will require brands and businesses to rethink their marketing strategies. With a large user base and significant engagement, TikTok has become an important platform for reaching younger audiences, particularly Gen Z. If the ban goes into effect, marketing investments that were previously focused on TikTok may need to be redirected to platforms like YouTube or Meta properties.
Furthermore, the impact of this ban extends beyond just marketing. TikTok has become a popular starting point for search and discovery among younger users. The platform introduced Search Ads in August and added Search Insights in March, indicating its growing importance as a search engine for its users.
Overall, the enactment of the TikTok Sell or Ban Bill is a significant development in the ongoing debate surrounding the popular social media platform. The consequences of this ban will be felt by TikTok users, brands, and businesses alike. It remains to be seen how TikTok will respond and whether they will be able to challenge the ban in court successfully. In the meantime, marketers will need to adjust their strategies and explore alternative platforms to reach their desired audience.
