When I first became aware of TikTok in late 2018, I was shocked at how something that was essentially Vine (RIP) repackaged, was gaining such traction across Gen-Z. But, as 2018 became 2019, and 2020 became the pandemic, it was clear TikTok was here to stay, in a big way. But I must admit, what I didn’t see coming was two global superpowers facing off over an app for silly dance routines. Interesting times we’re living in. Last week President Biden signed the proposed sell-off bill into law, giving TikTok owners ByteDance around 270 days to find a new American owner or face a nationwide ban. With the clock ticking, we ask, what’s next for the platform?
See you in court?
Unsurprisingly, TikTok have come out the gates punching, vowing to fight the bill in the courts, with TikTok CEO Shou Xi Chew branding it an ‘unconstitutional’ attack on the app. According to Chew, the company is confident they can beat this in the courtroom:
“We believe the facts and the law are clearly on our side, and we will ultimately prevail. The fact is, we have invested billions of dollars to keep U.S. data safe and our platform free from outside influence and manipulation.”
But is this just PR posturing? Could a private company take on the White House and win? According to an article in Platformer, national security is the most dangerous weapon in the Government’s arsenal when it comes to defending the ban, and as you can imagine, this is likely to be far more compelling than any technical mitigating measures the platform can impose. In sum, it feels like the safety of the nation, when it comes to data misuse and manipulation, outweighs citizens’ rights to make snack stack challenge videos or do Karaoke underwater. Ergh the injustice.
What if the TikTok runs out of time?
According to the bill, TikTok now has 270 days to divest, but there’s also a provision that could give TikTok an extra three months under certain conditions (such as being in negotiations with buyers and needing more time to finalise the deal).
So basically, TikTok has a year to either find a U.S. owner or face the boot. But don’t worry kids, put your phone torches and pitchfork magazines down. It’s not disappearing overnight. With the platform being one of the highest growth companies in the tech space, finding a buyer ought not to be challenging. However, there’s a big hurdle: the Chinese government has vowed to oppose the sell-off. So even if TikTok finds a potential buyer it likes, it might not be able to seal the deal.
Will other markets follow suit?
As you can imagine, TikTok is worried that other countries will now follow the lead of the U.S. and introduce similar rules.
If TikTok ends up being bought by a U.S. company, most Western nations might be fine with their user data being stored in the U.S., like it is with other social apps. However, there’s growing momentum amongst EU officials to push for European user data to stay in Europe, just like in the U.S.
The closest example is the ban on TikTok use on Government devices, which have spread across Western nations recently. Canada, the UK and now Australia have joined the US in outlawing the app across the executive workforce. With all of these moves driven by a similar pool of security advice, it’s likely that other nations will seek to put controls over TikTok in the near future.
Should marketers reduce their focus on the platform?
This is a tricky question to answer. With over 1 billion monthly active users and over $6bn dollars generated in ad revenue last year, it’s unlikely marketers will up and leave the platform. That being said, it’s crucial to remember the importance of having a diversified digital strategy. This discussion underscores the risk of putting all your eggs in one basket.
Platforms like Instagram Reels and YouTube Shorts stand to benefit the most. They share similarities with TikTok, making them ideal alternatives to explore. Even if it’s just through reposting and establishing a presence, it’s worth considering. Additionally, depending on your audience, Snapchat Spotlight could also be an option worth exploring.
In any case, it’s wise to consider alternatives. Keeping an open mind and exploring new platforms is always a good idea.
For more insights into the changing digital landscape contact the team at info@wearerabbits.co.uk
