U.S. Supreme Court to Hear Case on TikTok Ban in January

What Happened?

The U.S. Supreme Court has announced it will hear an appeal of the law that could ban TikTok in the United States.

ByteDance, the parent company of TikTok, has appealed a lower court ruling which upheld the Protecting Americans from Foreign Adversary Controlled Applications Act. That would ban the popular video streaming application TikTok in the United States unless the application is sold to a non-Chinese owner.

Oral arguments for the appeal are set to begin on January 10^th, 2025. The Supreme Court’s decision to hear the case leaves open the possibility that TikTok could continue to be used in the United States despite a Congressional attempt to ban it.

Why it Matters

One third of American adults along with 63% of American teenagers use TikTok. Half of those between ages 13 and 17 use the app on a daily basis.

Because there are so many TikTok users in the United States, if a ban went into effect many businesses and advertisers would have to find new ways to connect with clients and customers.

Currently, advertising on TikTok represents an estimated 3.4% of the total ad market in the United States. That’s according to Megan Reschke of Basis Technologies. 

Online platforms come and go due to a number of factors, such as changing technologies, changes in user preferences, and new regulatory guidance. For its own part, TikTok claims that if a ban goes into effect, small businesses in the United States will lose a billion dollars in the first month. Content creators stand to lose another three hundred million a month due to the loss of the popular platform.

Advertisers and businesses would likely adapt to a ban, but such a shift would take time. The losses estimated by TikTok would be felt across a number of different industries in the short term.

How it Affects You

If the Supreme Court upholds the Foreign Adversary Controlled Applications Act and a TikTok ban does go into force, advertisers who relied on the application would have no choice but to switch to other platforms.

TikTok rivals such as YouTube, Instagram, Snapchat, and Facebook stand to gain the most from a ban, since they would likely see an increase in users and advertisers.

In particular, online advertising aimed at the thirteen to seventeen year old demographic would likely see the biggest changes, since teenagers are the heaviest users of TikTok in the United States.

Should the ban be struck down, then the incoming Trump administration would be let off the hook politically since the decision would be made for it. Mr. Trump has previously indicated he would not support a ban of TikTok.