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Since its launch 5 years ago, the TikTok app has amassed around 150 million users in the US alone, giving small businesses a new way to reach potential customers, while also raising concern among national security experts and US lawmakers.
The future of the application is now in game there, especially since President Joe Biden’s administration is calling on its Chinese owners to sell their stock or face bans, according to a Wall Street Journal report.
TikTok officials revealed the sale won’t solve security woes and instead proposed a $1.5 billion plan to the Biden administration that it says would isolate its US operations from China.
Negotiations with US regulators about a way to protect application data have been going on for more than two years, and the Biden administration could face a long and bumpy road in trying to implement its threats, while momentum against the application is still in increase, but who are the beneficiaries and other losers in the case in whose application is banned in the United States?
beneficiaries of the ban
And let’s start with the beneficiaries of the TikTok ban, e in At the top of the list are competitors and any company that has tried to copy the application or provide a similar service, such as Instagram through the “Rails” service.
So are parents, as teens across the country struggle to curb their use of social media.
TikTok is among the most popular apps for teenagers and those parents who are worried about their kids using the app will rejoice at the ban.
In parallel, lawmakers on both sides who have opposed the Chinese implementation will benefit.
In addition to politicians opposing the app, a group of Silicon Valley executives recently joined the group of people concerned about the Chinese parent company.
The losers of the ban
As for the list of losers from this ban, they are US and Chinese technology companies and telecommunications companies, especially since Beijing and Washington entered in a technological cold war for at least the last five years.
And the TikTok ban is likely to exacerbate matters further, as some lawmakers fear Beijing will retaliate against an American company doing business in China.
Additionally, users, creators and businesses will be among the biggest victims of the ban, as creators or influencers rely on the app to sell everything from exercise programs to books and vitamins, sometimes raking in hundreds of thousands of dollars a year. year by sponsors.
Banning TikTok would be bad news for investors in its Chinese parent company, ByteDance, which is 20% owned by its founders, 20% by employees and 60% by global investors.
While Oracle will be one of the biggest losers, especially since TikTok hired the company to store data from its American users, as well as monitor its video recommendation algorithm for interfering signals from China.
The US survival app relies so heavily on Oracle that it has dubbed its plans to spin off its US operations “Project Texas,” a reference to Oracle’s Austin headquarters. And if TikTok is banned, Oracle will lose a major customer.
TikTok CEO Xu Zi Qiu was reported to have undergone a grilling session of Congress on Thursday as the Biden administration faces mounting pressure from lawmakers to ban the app in the country on national security grounds.
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