
What’s happening with the TikTok ban?
Rita McGonigle - 27 January 2025
If you’re as obsessed with TikTok as we are here at Chambers Student, you’ll already know that the platform went dark in the US for almost half a day last week due to concerns over national security. President Trump swooped in to ‘save’ the day, signing an executive order granting the app a 75-day extension to comply with the law that will uphold the ban if it is not sold. The executive order stems from concerns that the Chinese government is capturing the data of US TikTok users through its parent company ByteDance. Therefore, Trump has suggested that TikTok become a 50-50 joint venture with an American company.
The matter presents various commercial issues, one of which is competition law. Who would engage in this joint venture with TikTok and what would the regulators say? Billionaire X owner Elon Musk has expressed his desire to purchase the platform and has the green light from Trump, but the Federal Trade Commission may not share the same enthusiasm. IP is another key concern here. The TikTok algorithm has encouraged such high usage of the app as users enjoy a personalised experience which even results in them making purchases through the TikTok shop. A joint venture may expose the trade secrets of TikTok’s algorithm.
Employees are also at risk, as TikTok employs 7,000 people in the US. They have been reassured their jobs are safe, but this may not be the case if the platform fails to secure a sale in 75 days. Aside from official employees, there are thousands of TikTok influencers in the US who have brand partnerships and contracts which require them to post on the app.
Ultimately, it’s safe to say the potential ban will create a lot of work for lawyers, whether that’s renegotiating contracts, protecting TikTok’s IP, or advising on a potential merger.