By Veronica Chiaravalli
“Sorry, TikTok isn’t available right now. A law banning TikTok has been enacted in the US. Unfortunately, that means you can’t use TikTok right now. We are fortunate that President Trump has indicated that he will work on a solution to reinstate TikTok once he takes office. Please stay tuned!”
On 18 January 2025 the latter message appeared on the screen of 136 million Americans, causing severe worry amongst users for whom the platform represents a significant source of income. The concern over the Chinese platform stems from worries of US national security in relation to the vast amounts of data it collects on its users, together with the threat of it being used for propaganda campaigns. Under the bill passed by the US House of Representatives and Former President Biden in April 2024, ByteDance, the Chinese company owning TikTok, was required to sell the platform to a US-based (or allied country) party within a nine-month period. Despite ByteDance’s attempts to overturn the decision, its refusal to sell ultimately brought the app to shut-down for US users. Still, the ban was short-lived as, after the presidential transition, President Trump issued an executive order granting TikTok a 75-day extension to comply with the law. Interestingly, Trump had been the first advocate against the platform, insisting on a ban during his first presidency. Since then, TikTok has grown exponentially, becoming an invaluable resource for businesses and consumers, such that the current US President had a change of heart. In light of this, could a ban be catastrophic?
TikTok’s most recent evaluation report in collaboration with Oxford Economics revealed the platform’s marketing opportunities for small businesses drove a general 88% increase in sales, contributing to US GDP by $24.2 billion and supporting 224,000 jobs in 2023. The food and beverages industry experienced the highest growth, increasing revenue by $4.1 billion, while other sectors experienced an average increase of $1.5 billion. These outstanding results begin to explain how TikTok has become fundamental for US businesses. The biggest advantage the platform offers is its algorithm, which allows any video to go viral without the need of a large follower base. This distinguishes TikTok from other social media platforms, creating opportunities for small businesses aiming to increase their brand awareness. Another attractive feature is its budget-friendliness which is advantageous to businesses that lack opportunity to invest in large advertisement campaigns. A successful example is the hair-accessory business Enchanted Scrunch founded by Dasha Derkach. After beginning to make video content of her products, Derkach’s business went viral, growing the company into a “six-figure company with over 170k followers”. Finally, the platform also offers TikTok for Business a dedicated space for businesses looking to expand their customer reach. This provides tools such as performance metrics and assistance by a community of experts to optimize businesses’ marketing campaigns. Thus, TikTok is not only creating opportunities for new entrepreneurs, but also providing invaluable resources to existing businesses who learn to navigate in social media markets.
Businesses are not the only revenue earners on the platform as the job of “content creator” has grown substantially through recent years. From current statistics, the creator economy is worth $127.65 billion, with a labor force of 162 million people, nearly half of which working full-time. After YouTube, TikTok is the second highest-paying platform in 2025, given the multiple features creators can use to monetize their content. For example, the platform’s Creator Rewards Program encourages the production of engaging and high-quality content by paying $4.00 to $8.00 per 1,000 video views. This means creators can earn $8,000 per video by reaching 1 million views which, given the platform’s algorithm, is attainable to many creators or influencers with a large following. Moreover, TikTok also leverages popular creators’ influenceability through the Creator Marketplace, a service offered by the platform which links creators and businesses to incentivize and simplify brand-influencer collaborations. This is specifically important as a 2024 survey reveals 66.9% of content creators “earn the most income from sponsored posts and brand deals”. The highest paid TikTok creator is Charli D’Amelio who earned $23.5 million in 2024, charging a minimum of $100,000 for sponsored posts. This demonstrates the outstanding success creators can reach using the platform. Finally, TikTok Live is another way in which creators earn revenue. The platform allows users to purchase “TikTok coins” with which they can send “gifts” to their favorite creator when the latter hosts live streams. Gifts hold a range of prices so that all users have the opportunity to participate, with the most expensive gift paying creators $562. Live streams also carry the option to participate in “TikTok battles” where two creators compete to receive the highest amount of gifts in a given time frame. This allows creators to profit over users’ engagement, earning impressive amounts of revenue. Thus, it is evident how TikTok has created a remarkable system for many creators who have become reliant on the platform as both a secondary or in some cases primary source of income.
Having seen the notable benefits TikTok has brought to businesses and creators, a ban seems potentially catastrophic for individuals who have become increasingly dependent on the platform. This being said, concerns over data privacy are not unwarranted. Like many social media platforms, TikTok collects multiple types of data on its users, including geolocation, personal analytics, and audio-fingerprinting. This gives the platform access to information regarding users’ preferences along with the ability to identify specific users or devices. The worry stems from the potential access of this information by the Chinese Communist Party (CCP) which by law requires Chinese businesses to disclose all data collected if requested by authorities. This is a problem for countries who do not wish their citizens’ data to be accessed by Chinese authorities. Indeed, the TikTok ban is not unique to the US as various governments have expressed concerns over cybersecurity. For example, the UK banned the app’s use on government official devices in 2023 as a “prudent and proportionate step following advice from our cyber security experts” as stated by Former Chancellor Dowden. The EU Commission, Australia and Canada have also taken this precaution. Another reason in support of the ban is worries of content manipulation to promote government-driven ideologies. In December 2024, a study by the Rutgers University group Network Contagion Research Institute concluded there is evidence the platform could be using its algorithm to promote pro-CCP content. TikTok has denied this accusation repeatedly in the past, with CEO Shou Zi Chew asserting that the platform commits to keep “free from any manipulation from any government”. Still, attempts to counter the ban have been unsuccessful, as the risks concerning the platform are deemed too significant to overlook. Regardless of President Trump’s postponement of the ban, if by April 4th ByteDance has failed to defer it, TikTok will officially be unavailable to US users.
While the ban certainly reinforces national security, an article by Thomas Stackpole for Harvard Business Review reveals the implications on global business could be significant. Specifically, Stackpole considers the ban to illustrate how quickly restrictions of foreign platforms or technology are carried out. This is important for business managers operating in foreign markets, serving as a warning to diversify their operations and strategize methods to tackle new legal demands on data governance and privacy. Additionally, the use of internet services such as Google, Apple, Amazon and Microsoft will also have to be monitored, as policies such as the TikTok ban are enforced by sanctioning platforms with heavy fines if found distributing banned material. Indeed, following the TikTok ban, the app became no longer available for download on Google Play or Apple Store, as these services faced fines of $5,000 per user. This shows businesses operating through digital platforms must follow regulations attentively. Finally, the ban may also signal the beginning of a “restricted internet” era. While historically the US has been a committed advocate of internet freedom, imposing the TikTok ban appears contradictory if viewed as an attempt to restrict the circulation of contrasting ideologies. Indeed, debates arguing that the ban violates First Amendment rights have risen significantly. The American Civil Liberties Union argues the ban would “set a disturbing precedent for future government restrictions on online speech”. Importantly, lecturer and researcher Konstantinos Komaitis tells Stackpole the ban will likely encourage more countries to take similar actions given the political influence the US has on the global stage. As mentioned priorly, many countries have already taken actions to regulate TikTok, thus there is no reason to deem the enforcement of more restrictions as impossible.
Currently, the fate of the app, together with that of the 7 million US businesses it supports, remains uncertain. The ban cannot be stopped if not by ByteDance’s compliance with the American law. In the event that the law is not respected, the ban will likely cause significant losses to businesses and creators for whom the platform provides a significant source of income. April 4th, the postponed deadline for the ban, will mark a significant moment which could redefine global business and the internet’s political landscape.
The views expressed in this article are the author’s own, and may not reflect the opinions of The St Andrews Economist.
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