
An internal memo sent Saturday from Michael Beckerman, TikTok’s head of public policy in the Americas, assured workers it would fight the bill, deeming it “the beginning, not the end.”
The ban isn’t the only concern for the app. Some Gen Zers feel TikTok has already committed the cardinal sin of internet apps: selling out. At a time when people struggle to get by, TikTok is inundating users with creators hawking products, writes BI’s Lindsay Dodgson.
But don’t expect TikTok to back off. TikTok Shop has proved to be a big success in retaining customers, outperforming Shein and Temu when it came to repeat purchases, according to one report.
Building out its e-commerce business will likely remain a key focus as it looks to reach profitability. Despite about $20 billion in revenue last year, TikTok is still in its cash-burn era, according to The Information.
A TikTok ban would benefit one familiar face in social media, though, writes BI’s Katie Notopoulos. Instagram’s Reels, the short-form video player, would be a natural landing spot for TikTokers looking for a new home. Plus, it’s already pulled ahead of TikTok in certain categories.
YouTube Shorts, too, stand to grab more attention after a TikTok ban.
But the demise of a rival might be a short-term benefit. The government successfully shutting down a popular app is not the precedent Big Tech wants to set.
