With the election looming, many have overlooked the materializing threat of a nationwide TikTok ban. In April 2024, President Biden signed a bipartisan bill that requires TikTok’s divestiture from ByteDance, its parent company, or face closure by January 19, 2025. As of now, TikTok has yet to divest, and ByteDance has shown no intention of complying with the mandate.
Currently, 7 million U.S. businesses utilize TikTok, and the platform reported driving $15 billion in revenue for small businesses in 2023. Moreover, 39% of small businesses claim the platform is critical to their operations. TikTok also employs 7,000 Americans and contributes to the income of many of its 170 million monthly active users nationwide. This demonstrates that the platform is far more than a hub for dance videos—it is a vital economic tool for countless individuals and businesses.
U.S. Supreme Court Justice Brett Kavanaugh has raised concerns about the platform's potential risks, particularly for teenage users. He warns of future blackmail and espionage threats, explaining that today’s TikTok users could be tomorrow’s FBI or CIA operatives, which he deems a serious concern for national security.
While businesses could pivot to other short-form video platforms, TikTok’s unique reach and popularity set it apart. With 1.67 billion users worldwide and 2.7 billion monthly users, it ranks fifth globally, behind Meta’s “big three” (Facebook, Instagram, and WhatsApp) and YouTube.
A TikTok ban could lead to reduced traffic for small businesses, diminishing revenue and potentially triggering layoffs. The resulting ripple effect could impact the broader economy, compounding challenges during a period of political transition. Unless the Supreme Court intervenes to block the law, TikTok will “go dark” on January 19, 2025, according to the platform's attorney, Noel Francisco. “On January 19th, as I understand it, we shut down,” he stated.
Americans are watching closely as the Supreme Court deliberates on a decision that could significantly affect their beloved small businesses and the broader economy.
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