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TikTok ban: a shot against China or a shot in the arm?

TikTok ban: a shot against China or a shot in the arm?
TikTok ban: a shot against China or a shot in the arm?
5:57

Opportunities and challenges of a possible TikTok ban in the USA

The debate about a possible TikTok ban in the USA has reached a new dimension. The US Supreme Court is apparently leaning towards clearing the way for a law that would force either the sale of the platform by its Chinese parent company ByteDance or a complete shutdown. The decision has far-reaching consequences for users, companies and the entire digital landscape. But what opportunities and risks does this development entail? Translated with www.DeepL.com/Translator (free version)

 
 

Political and legal background

englischTikTok has been at the center of geopolitical tensions for years. The Biden administration has put the issue of "national security" at the center of the debate and accused ByteDance of sharing user data with the Chinese government - an accusation that the company has always denied (BBC, NBC News).

According to CNN, the question of whether the law violates freedom of speech under the First Amendment has been the subject of intense debate. Despite concerns, the Supreme Court seems inclined to uphold the ban (CNN).

 
 
 

 

A new player in the debate: Elon Musk as a potential buyer

The discussion surrounding TikTok has taken a surprising turn with reports of a possible takeover of the US business by Elon Musk (Bloomberg). According to US media, the Chinese government is considering selling TikTok US to Musk to avert the threat of a shutdown in the US. According to reports, Musk's platform X, formerly Twitter, could take control of TikTok US and operate the services jointly.

According to Bloomberg, this option has already been discussed in Beijing. Musk, who is known for his close business relations with Beijing, could represent a strategically favorable solution for ByteDance.

Such a move would fundamentally change the geopolitical and economic dynamics of the platform. A takeover by Musk could save TikTok US from a ban and at the same time defuse the US government's security concerns by placing data control under a US company. However, questions remain: Would users accept Elon Musk as the custodian of their data? And how would such a takeover affect the market structure?

 

Voices from the American population

A survey by the Pew Research Center shows that the opinions of American users on the TikTok ban are strongly divided. According to the survey published in March 2023, half of Americans are in favor of the US government banning TikTok, while 22% oppose the idea and 28% are unsure. These results were collected shortly before and after TikTok CEO Shou Chew testified before Congress, underscoring the challenges the company faces in convincing the public.

olivier-bergeron-sDwhXKJijyE-unsplashThe differences between age groups are interesting: While 46% of 18- to 29-year-olds reject a ban, this figure is only 15% for 50- to 64-year-olds and as low as 4% for those over 65. The use of the platform also plays a role: 56% of TikTok users are against a ban, compared to only 11% of those who do not use TikTok. Remarkably, 19% of TikTok users support a ban despite their use.

Another important factor is knowledge of TikTok's connection to China. People who are aware of this connection are twice as likely to support a ban (60%) as those who are not aware of this connection (27%).

Source: CNN Business

 

Chances of a TikTok ban

  1. Strengthening national security: Proponents argue that a ban improves control over user data and minimizes potential security risks from foreign influence (Mobile World Live).

  2. Promotion of national alternatives: A ban could lead to greater use of US platforms such as Instagram Reels or YouTube Shorts. This would not only strengthen the domestic economy, but also create new opportunities for developers and companies (Variety).

  3. Ensuring fair competitive conditions: Critics of TikTok argue that the platform enjoys competitive advantages not available to other providers due to its connection to ByteDance. A ban could create a level playing field.

Risks and challenges
  1. Restriction of freedom of expression: Many users see TikTok as an important platform for distributing content and participating in social discussions. A ban would deprive millions of people of their voice (The Guardian).

  2. Economic losses: Companies and influencers who use TikTok as a central platform for marketing and distribution would suffer massive financial losses. TikTok has become a key tool for digital advertising.

  3. Technological isolation: A ban could lead to the USA becoming more technologically isolated, which could have long-term disadvantages for the country's innovative strength (Law.com).

Conclusion: Impact on influencer marketing

TikTok has established itself as one of the most influential platforms for influencer marketing in recent years. A ban would not only affect influencers' sources of income, but would also force companies to fundamentally rethink their marketing strategies. Platforms such as Instagram and YouTube could gain in importance, while smaller providers would try to fill the gap. This would fundamentally change the landscape of digital marketing.

A TikTok ban in the US would have far-reaching consequences. While it could address security concerns and promote domestic alternatives, it poses significant risks to freedom of expression, the economy and technology. The future of influencer marketing would be particularly affected and would create new challenges for everyone involved.

In this rapidly changing environment, it is crucial that companies have access to a flexible and effective solution to adapt their influencer marketing strategies. Our IROIN® Influencer Marketing Suite offers just that: a comprehensive platform that allows brands to search and find not only national, but also American influencers. With powerful search capabilities and a diverse network of influencers covering all major platforms, companies are able to target the right influencers for their campaigns. The Supreme Court's decision will have a lasting impact not only on TikTok, but on the entire digital world - and with our IROIN® Influencer Marketing Suite, brands are well equipped to operate successfully in this new reality.

 

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