Imagine shutting the doors on a shop visited by 170,000 million Americans. That’s essentially what transpired as a result of a rare, unanimous vote by the Supreme Court to uphold legislation requiring TikTok to either divest from Chinese parent ByteDance or be banned in the United States. Under the law, TikTok has 90 days to find a buyer before it’s set to go dark. What’s at stake? The livelihood of many Americans who rely on the platform for their business. The legislation requiring TikTok be banned received bipartisan support from lawmakers concerned that TikTok’s parent company, ByteDance, which has ties to the Chinese government, was collecting information on Americans that could later be used against them. Indeed, lawmakers perceived the legislation as being essential to national security. That, however, means little to the many Americans who see their business being threatened if the app goes dark.
Estimates by Oxford Economics suggest that small business with a TikTok presence contribute nearly a quarter of a billion dollars to the U.S. economy. The app is also important to content creators posting and influencers who generate income through sponsored posts, affiliate marketing, brand partnerships and other programs. TikTok’s CEO claims that the ban violates freedom of speech, a claim that some have scoffed at suggesting that foreign companies, especially those with ties to the Chinese communist party, are not entitled to the same rights as Americans. Some business owners that currently use TikTok have made backup plans to shift their business to competing apps such as YouTube, Instagram, or Chinese rival RedNote. Some claim though, that the algorithm used by TikTok is superior to any of these, and without it, their reach will be more limited.
For now, TikTok is back online after Trump had pledged to restore it. However, the future of TikTok in the United States remains uncertain. Both Donald Trump and the Chinese Foreign Ministry have indicated that a deal could be possible. Shou Chew, TikTok’s CEO presence at Trump’s inauguration suggests that discussions are ongoing.
Discussion Questions:
1. The decision by the Supreme Court to uphold the legislation banning TikTok was unanimous, a rare occurrence in today’s highly politicized environment. In your opinion, did the Supreme Court get it right? Should TikTok be allowed to operate in the United States given the concern that it could be used to spy on Americans? What is the potential economic cost of a ban?
2. Discuss the role of entrepreneurs and content creators in driving the growth of TikTok. Why were they attracted to TikTok rather than rival platforms like Facebook or Instagram? How might a ban on TikTok advance new technologies and new platforms?
Sources| CNN: https://edition.cnn.com/2025/01/14/tech/rednote-china-popularity-us-tiktok-ban-intl-hnk/index.html; YouTube: https://www.youtube.com/watch?v=Z_JFqlY3M6M; https://www.cbsnews.com/news/tik-tok-ban-small-businesses-creators/; WSJ: https://www.wsj.com/tech/a-tiktok-ban-is-imminent-what-are-the-financial-stakes-ef245d19?mod=Searchresults_pos1&page=1;CNBC: https://www.cnbc.com/2024/12/09/tiktok-ban-cost-us-small-businesses-creators-billion-dollars-month.html; NY Times: https://www.nytimes.com/2025/01/09/us/politics/tiktok-supreme-court-national-security-free-speech.html; NPR: https://www.npr.org/2025/01/19/nx-s1-5267568/tiktok-back-online; Unsplash: Photo by Alexander Shatov on Unsplash