auled their marketing strategies, the effects are felt throughout the economy
Supreme Court Upholds TikTok Ban, Deadline Looms for Parent Company to Divest
On January 17, 2025, the United States Supreme Court made a decision that has captured the attention of the nation for the past two weeks. In a unanimous ruling, all nine Justices have upheld the TikTok ban and given the Chinese parent company, ByteDance, until January 19, 2025 to divest from the popular video app. Despite having months to comply, ByteDance has chosen not to do so.
TikTok has become a major player in the digital landscape of the United States, with over 170 million users in the country alone. Additionally, at least 7 million of those users rely on the app’s Creator program as a source of income. However, for those hoping for a last-minute intervention to save the app, time is quickly running out.
The Supreme Court’s decision essentially requires ByteDance to divest all U.S.-based operations or face a complete ban in the country, unless the incoming presidential administration takes urgent action. This ruling is based on national security concerns over data collection practices and the fact that ByteDance is owned by a country considered a foreign adversary.
It is rare for the Supreme Court to reach a unanimous decision, but in this case, all nine Justices agree that the TikTok ban is necessary, despite protests from free speech advocates. They argue that the potential threat to national security outweighs the app’s role in promoting free expression. Furthermore, they point out that there are alternative platforms available, although these lack the reach and unique user base of TikTok.
The ones who will be most affected by the ban are not the casual users, but the creators who generate much of the app’s content. Many of these creators rely on TikTok’s Creator program as their main source of income. While they can migrate to other platforms, these alternatives are not as profitable and do not have the same reach as TikTok.
The music industry, in particular, will feel the impact of the ban, as many emerging artists have used TikTok to launch their careers. Similarly, small businesses that use the app for marketing will lose a valuable advertising avenue. While there are other platforms like Meta and X (formerly Twitter), they are known to suppress unpaid advertising content, making them less appealing. It is estimated that small and medium-sized businesses in the U.S. could collectively lose $1.6 billion within the first month of the ban. When creators and businesses lose revenue or have to quickly change their marketing strategies, the effects are felt throughout the economy.