Examining the Implications of the TikTok Ban: Data Security, Monetization Shifts, and User Concerns

On Wednesday, President Joe Biden signed a bill that could potentially lead to the banning of TikTok in the United States unless it is sold to a US company. With over 170 million Americans using TikTok, many rely on the platform for their livelihoods. However, the passage of this legislation signals a significant shift in the app’s future within the US.

Efforts to restrict the Chinese-owned app have been ongoing for years, including initiatives by former President Donald Trump. Finally, with congressional approval, Biden’s signature solidifies the push for ByteDance, TikTok’s parent company based in Beijing, to divest its ownership within nine months to a US entity. There’s a provision for a three-month extension if a sale is in progress or facing regulatory hurdles.

This development underscores the evolving landscape of digital governance and international relations, with implications for millions of users and the tech industry at large.

When will the ban take effect?

Initially, the proposal required ByteDance to divest from its US subsidiary within six months, but negotiations prolonged this period to nine months. If a sale is already in progress, an extra three months will be granted to finalize it.

Nevertheless, the timeline for the ban could face significant extensions due to anticipated court challenges, potentially stretching the process over several years.

If someone has already downloaded TikTok

While TikTok is not expected to disappear immediately from existing users’ devices, it will be delisted from Apple and Google’s app stores. Consequently, users will no longer have access to updates, security patches, or bug fixes, rendering the app gradually unusable over time.

Although some tech-savvy individuals may try to bypass the ban using methods such as VPNs, alternative app stores, or foreign SIM cards, the likelihood of success is minimal. Many users may opt to transition to alternative platforms like Instagram Reels or YouTube, where similar content is available.

Dean Ball from the Mercatus Center at George Mason University underscores the TikTok bill’s reliance on Apple and Google’s control over their smartphone platforms. The primary mechanism of the bill involves directing these companies to cease allowing the TikTok app on their respective app stores. However, Ball suggests that such a mechanism may be less effective in a regulatory environment targeting large tech firms advocated by many antitrust proponents.

Is TikTok’s Demise Accelerating a Shift in Content Monetization?

Andrew Graham, head of digital corporate advisory and partnerships at CAA, highlights that although creators won’t lose immediate access to TikTok, the imminent threat of a U.S. ban “will prompt an immediate shift towards diversifying talent platforms.”

Graham explains that creators are increasingly turning to platforms such as Instagram Reels and YouTube Shorts to address the challenges of monetizing short-form content at lower rates compared to long-form content. He suggests that TikTok’s most significant impact might be catalyzing a decline in long-form content monetization on platforms like YouTube.

Is there cause for concern when using TikTok?

Lawmakers and officials from both sides express worries regarding the possibility of Chinese authorities accessing data on TikTok’s American users.

Chinese national security laws mandate companies like ByteDance to aid in intelligence efforts, sparking concerns within the US government.

Although ByteDance denies being under the influence of the Chinese government and asserts non-disclosure of US user data, skepticism about data security remains prevalent.

Data privacy experts suggest that the Chinese government could acquire information on Americans through alternative channels, such as commercial data brokers.