With the clock ticking ever closer toward the January 19, 2025, deadline for a potential ban on TikTok, the popular social media app currently used by 170 million Americans finds itself at the center of intense scrutiny and legal battles. TikTok, owned by the Chinese company ByteDance, is challenging this proposed ban in the U.S. Supreme Court, arguing it violates its First Amendment rights.
The potential ramifications of such action could be monumental, not just for the app itself but also for countless creators and small businesses across the United States. Jacob Levinrad, a digital entrepreneur, highlights the looming dangers, stating, “The reverberations across the entire economy — particularly the creator economy — will be massive.” This sentiment is echoed by experts and business owners who see the ban as not just the loss of an app, but the collapse of whole business models built on it.
The creator economy, currently valued at over $250 billion globally and expected to reach $480 billion by 2027, could suffer immensely from TikTok's closure. Levinrad warns of staggering loss, stating, “A huge portion of creators on TikTok would instantly become obsolete,” adding, “Losing the U.S. market would make it feel like a really bad bet.” If the ban takes effect, estimates suggest about $1.3 billion could evaporate from U.S. small business and creator revenue within just one month.
Many creators like Kelsey Pierson, who relies on TikTok for income generated from brand collaborations, fear the consequences. Pierson explains, “Most of my income come from brand collaboration. Just being able to find different companies. We can find and communicate through TikTok.” The looming ban has prompted Pierson to seek alternate platforms to share her content.
Marketing professionals warn small business owners to strategize their risk, as TikTok operates under unpredictable circumstances. Carly Benewith, co-owner of Mountain Air Marketing, advises clients to diversify their marketing outreach, saying, “You are utilizing a platform... You are putting yourself at risk of losing those types of clients.” To mitigate potential fallout, she encourages businesses to develop direct channels using tracking tools on their websites.
Another concern is how creators might migrate to other platforms like YouTube Shorts or Instagram Reels, which may take on the influx of users searching for similar functionalities. Marketing professor Stefanie Boyer suggests, “Creators should start migrating their audience to other platforms where they can get similar results.” Often, users who want engaging content will follow where their favorite creators go.
For many small businesses, TikTok serves as a lifeblood. For example, Annya White-Brown, founder of NaturalAnnie Essentials, reveals the impact TikTok has on her candle-making business: “When we do go viral on TikTok, we’re seeing months upon months of inflow of traffic.” White-Brown’s business has witnessed significant gains owing to the app, emphasizing the anxiety around potential market loss.
Besides economic impacts, questions concerning data sovereignty and digital rights have arisen due to the proposed ban. Elle Farrell-Kingsley, a former Big Tech AI designer, points out, “This could accelerate the trend toward more stringent data protection laws,” noting other countries might take the U.S. example and implement similar bans.
Legal experts raise concerns as well. Jamie E. Wright, tech lawyer, posits, “If the ban goes through, it will set a precedent on how social media platforms with foreign ownerships would be treated in the U.S.” This shifts not only the dynamics of American tech policy but may also affect international relationships.
Lack of comprehensive federal data privacy laws enhances vulnerabilities across all social media platforms, according to Star Kashman, tech lawyer. “Banning TikTok does not address the root issues of national security or data privacy,” Kashman asserts. “We need laws akin to the EU’s GDPR framework.”
While the battle against the clock continues, many creators are strategizing ways to adapt regardless of TikTok’s fate. Shama Hyder, CEO of Zen Media, notes, “This isn’t just another tech story—it’s about millions of Americans who’ve built businesses and communities on TikTok.” She emphasizes the importance of flexible strategies amid surging uncertainty.
Meanwhile, musicians like Jackson Gleaves express deep concern over TikTok's potential ban. Gleaves states, “I’m going to have to take a different route when they actually ban it,” reflecting the apprehension felt across creative industries.
Overall, as the debate heightens and potential consequences loom, businesses and creators find themselves at a crossroads. With TikTok’s future hanging by a thread, all eyes are now glued to the legal proceedings. The impact, whether the creators adapt or not, will be felt far and wide, marking significant shifts across digital landscapes and the creator economy.
Right now, the question remains: Can TikTok find footing to prevent the impending storm? While possible alternatives may exist, the path forward for many currently reliant on the app remains rife with unpredictability.
