Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
The alarming headlines are getting louder these days – TikTok ban: It's here! Americans Are Loud About TikTok Ban Over Viral Insults! Say goodbye to TikTok!
Content creators and influencers who make a living on TikTok are engaging in a toxic panic, spreading misinformation about what ByteDance and the Chinese government can and cannot actually do.
Neither worried nor freaked out, we decided to do something crazy in this conversation and asked CMI's chief strategy advisor Robert Rose to look at the challenges from a practicality perspective. Watch this video or read on for his opinion:
1. What does the TikTok law say?
Because I love you all, I read US House Resolution 7521 (the TikTok bill) so you don't have to. At just under 2.00 words, it's a short bill, but it's still written in politicians' legalese. It's not the most entertaining read.
Let's look at the summary. To make it more entertaining, I'm calling on my inner Jeff Spicoli (from the movie Fast Times at Ridgemont High) to explain:
“So, dude, check it out. Currently, TikTok is controlled by China – the uncoolest of the five uncool countries. And we don't trust them. Either TikTok has to sell itself to someone the President of the USA thinks is cool, or it becomes a crap city and they get the full slam and are nada in the United States. Oh, and even if they find someone bad to sell to, they have to give every user their cool data. If not, then the attorney general guy can hit them with this $500 per person per user lawsuit.”
OK, now you get it. TikTok must get rid of its Chinese control or the US will ban it. And even if it sells, they now have to give everyone access to their data.
Now let's look at the most likely outcomes:
2. Would a ban even be enforceable?
If you've been using the internet for a while, you might be wondering how the government would even enforce such a ban. How do you block such a big app? Well, the bill doesn't actually ban TikTok. It stipulates that anyone who helps ByteDance distribute TikTok content will be subject to a civil penalty.
So the federal government would not prosecute ByteDance. The Attorney General would sue companies like Oracle (for hosting the data), Apple or Google (for providing the app), or Comcast, Spectrum, Verizon, AT&T, etc. (for transferring the data).
You specifically CANNOT take action against individual users, employees or even the owner of TikTok for using the application. So it is not a violation to USE the app; It is a violation to DISTRIBUTE the app. The penalties are $5,000 per TikTok user. With more than 100 million US users, this penalty could reach $500 billion.
If you think that sounds silly – and relatively unenforceable – then I think so too.
3. Who would buy TikTok?
There are rumors that former politicians are setting up investment groups and big companies like Microsoft, Google or Apple are promoting the new TikTok. However, the law does not require the new TikTok to be owned by a US company. It simply cannot be controlled by a “foreign adversary country,” that is, China (including Hong Kong), Cuba, Iran, North Korea and Russia.
So if a Canadian company came out the winner, maybe that would be okay. Basically, the US President (whoever that is) decides what is okay.
4. What about user data?
If the existing bill passes the Senate and is signed by the President, ByteDance (regardless of divestment) will be required to release a feature to allow anyone to export ALL of their content – images, videos, text, etc. If the company fails to do this, it faces civil liability of $500 per person.
5. When might this happen?
The U.S. Senate has not yet announced plans to take up the House bill. However, if the bill were to become law, TikTok would have six months to find a buyer and conduct a sale. If they couldn't, TikTok would be banned, but after six months they could come back with a buyer the president thinks is “cool.”
6. Is this just about TikTok?
Any social media company controlled by a foreign adversary would be subject to this law. But since North Korea's newest short-video platform hasn't gone viral yet, it stands out in some ways to TikTok. The bill provides an exemption for platforms that provide product reviews and travel information. This is oddly specific, but I haven't figured out who this might protect.
You may see a lot of videos saying that ByteDance is banned from selling itself because Chinese law prohibits the export of technology. The argument seems to be that even if ByteDance wanted to sell TikTok, it couldn't. Some TikTok users even suspect that the bill is a conspiracy by politicians who are aware of Chinese law and want to ban the app entirely.
A ban may be the ultimate goal, but Chinese law is irrelevant. ByteDance is NOT owned by the Chinese government. It is owned by a combination of international investors, including its Chinese co-founders and its employees (including 7,000 Americans). The Chinese government holds a 1% stake and a seat on ByteDance's board.
Furthermore, the said Chinese law does NOT cover social media algorithms.
Now it is fair to say that the Chinese government will not voluntarily allow a sale and may even require some sort of “approval”. It's also plausible that ByteDance is hiding under the government's coattails and claiming, “We're not allowed to sell.” But to say they're banned is incorrect. And to suggest that Congress is carrying out a conspiracy gives too much credit to the intelligence of the current Congress.
7. What is likely to happen in marketing?
The short answer is not very much, especially not in the short term. The Senate hasn't even agreed to bring the bill to trial. They might just delay it, rewrite it, or do nothing. That means waiting for weeks or months.
For marketers, the drama will likely have a bigger impact than the things that happen.
TikTok has become one of the most important marketing channels for many B2C brands. B2B brands also use TikTok for paid advertising, employee advocacy, and influencer marketing. In CMI's latest study, 19% of B2B marketers say they use TikTok, more than double last year.
The key is to be aware of it. If your team is considering or already using TikTok as a platform, it's probably still a great channel for you and almost certainly will continue to be for the foreseeable future. However, if you are considering using the platform for anything other than promoting your other content platforms, be careful. If your brand is considering a significant investment in a comprehensive TikTok editorial strategy, you may want to be a little more cautious.
If you use TikTok as an influencer platform, some of the more influential creators may leave the platform or move to other platforms. This may distract some. It will also lead to more competition on platforms like Meta's Reels and LinkedIn.
Remember: If TikTok disappears tomorrow, the need for attention will not disappear. It will just switch to whatever the new (or old) thing is. If you're ready to refocus your content and marketing, you'll be fine.
As I've been saying for years, the key lesson is not to build your home on leased land. You never know when the ground will move beneath your feet.
Want more content marketing tips, insights, and examples? Subscribe to CMI weekday or weekly emails.
HANDPICKED RELATED CONTENT:
Cover image by Joseph Kalinowski/Content Marketing Institute
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
