The US House of Representatives this week passed a bill that could see TikTok banned in America.
It would give the social media giant’s Chinese parent company, ByteDance, six months to sell its controlling stake or the app would be blocked in the US.
The bill passed overwhelmingly in a bipartisan vote, and now needs to clear the Senate and be signed by President Joe Biden to become law.
It’s a move that would deal a blow to the creator economy, small businesses, and advertisers, and it has all of them scrambling to figure out their commerce strategy in its absence.
Jerry Luk, Co-Founder and President at video engagement platform, Firework, says: “In light of the potential TikTok ban, it’s imperative for brands to recognise the importance of diversifying their digital presence.”
“While the future of TikTok remains uncertain, this situation underscores the necessity of investing in their own digital properties.”
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He adds: “Having a direct relationship with their customers through their own websites or stores that they have full control not only mitigates the risk associated with relying on external platforms but also ensures a more personalised and engaging consumer experience.”
“And those website experiences don’t need to be static – they can incorporate the same community building, even live short-form videos found on TikTok and other platforms.”
Luk concludes: “This is a pivotal moment for brands to reassess their digital strategy and prioritise the development of their own channels to maintain and grow their audience engagement in an ever changing digital landscape.”
TikTok responds
Shortly after the aforementioned vote, TikTok’s Chief Executive, Shou Zi Chew, expressed his disappointment and said that the company would do “all we can” to protect the platform, including “exercising legal rights”.
TikTok has invested to keep data safe and the platform free from outside influences, he claimed.
“This bill gives more power to handful of other social media companies, who will also take billions of dollars out of the pockets of creators and small businesses,” he said.
“It will put more than 300,000 American jobs at risk and will take away your TikTok.”
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