Thanks to the sponsorship of the National Bank which allows us to offer the HEC Montreal Digital Marketing Simulator to our BAA students for free!

Logo digital HECEN
S'abonner à l'infolettre


How TikTok’s potential ban could harm companies in the United States

On March 13, 2024, the US House of Representatives voted 352-65 in favour of a bipartisan piece of legislation for a TikTok, the popular China-based app, ban. It was for fears of national security concerns, with Democrats and Republicans issuing statements warning of a possible data harvesting campaign. Speaker Mike Johnson (R-LA.) says that TikTok could be used to spread “harmful” information to Americans, which TikTok denies. This ban could mean potential disruption for companies and brands that have shaped their whole strategy around the social-media app.

In a 2024 Hootsuite survey on social trends, brands place TikTok in 7th place for most trusted social media apps. It is not the best, but when you consider that it is ahead of Snapchat and X, you see the impact and the view people and companies alike have of the platform. In fact, TikTok is a trusted media for many small businesses with ByteDance’s application driving US$14.7 billion in revenue for them. It contributed US$24.2 billion to the GDP of the United States in 2023.

TikTok’s users spend a lot of time on the app: on average, users spend over 1.5 hours on it everyday. This gives more advertising opportunities. 35% of users have purchased an item advertised on the app.

Banning TikTok will hurt companies in the United States, and users and content creators are complaining. The app is increasingly popular everyday, and millions in revenue are at risk. It is time for the Senate to decide on the fate of TikTok. ByteDance needs to sell the platform for it to survive. If not, Congress’ upper chamber will most likely ban it.

Image of the United States capitol building


Picture of achkarnoahlalani


Leave a Reply

Your email address will not be published. Required fields are marked *

Découvrir d'autres articles


Avez-vous finis votre lecture de l'article?

Vous pourriez tester vos connaissances numérique

25 questions pour déterminer si vos lectures sur le blogue ont fait de vous un expert du numérique