April 25, 2024
WASHINGTON, D.C. – After the Senate approved a measure this week to force TikTok owners to sell the company or face a ban in the United States, President Biden made good on his promise and signed it into law. The TikTok-related legislation was part of a $95 billion foreign aid package.
“The legislation will give TikTok’s Beijing-based parent company, ByteDance, up to a year to sell the app,” wrote Jesse Guynn, a reporter for USA Today in an April 23 article. “If they don’t, it would be banned from U.S. app stores and web hosting companies.”
TikTok Shop had a significant presence at Prosper Show 2024, with presenters such as Mandeep Kaur describing how she uses it to educate and inspire.
“As a Canadian business content creator, the potential ban of TikTok is very worrisome,” said Kaur, a full-time Amazon FBA seller based in Vancouver, BC. “As traditional forms of media are disappearing, people have found knowledge, education, and community on TikTok. A majority of my followers are women, and women make up a small percentage of e-commerce entrepreneurs. The best part of TikTok for me has been the ability to use my platform to inspire female entrepreneurs who would traditionally not be able to start an e-commerce business due to lack of support, motivation, and inspiration.”
If the ban does eventually happen, Marcus Gverzdys, a sales team lead at Prosper Show exhibitor Perpetua, speculated that budgets allocated for TikTok might move to a different platform such as Instagram. If not Instagram, Gverzdys believes those budgets may be invested into Amazon DSP (Delivery Service Partner) programs, or perhaps to sponsored ads, which could drive up the cost per clicks.
“TikTok has been known to compensate creators very well versus Meta platform,” he said. “My first thought is to think about those who have created a following and thus, a living off of the platform. They’re in a difficult spot if the ban goes through.”
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