The House of Representatives passed a bill that would require the TikTok owner, Chinese-based, ByteDance to sell the social media platform or face a total ban in the United States. Many House legislators have argued that the app could allow the Chinese government to access user data and influence Americans.
The deadline for a sale was set for January 19, 2025, but after TikTok's legal challenges failed, President Trump extended it to allow negotiations.
A deal has now been struck. On September 25th, Trump signed an executive order approving the transfer of U.S. operations to a group of investors including Oracle, Silver Lake, MGX, Michael Dell, and Rupert Murdoch. U.S. stakeholders will oversee data, security, and content moderation, while ByteDance retains a minority share and licenses its algorithm. A new U.S.-controlled board will govern TikTok going forward.
Legally, the ban only requires that existing users could no longer update the app, and no new users can download the app. But TikTok reportedly planned to shut down services for all 170 million US users if the ban went ahead.
- TikTok will keep operating outside the U.S. under ByteDance, so international campaigns remain unaffected.
- Because the U.S. algorithm will be separately licensed and retrained, the platform’s feed in America is likely to drift from global trends. Over time, what performs in the U.S. may look quite different from other markets. U.S. marketers will need to test and adapt content to the new algorithm. Marketers outside of the US should focus on local trends, as content that performs in the U.S. may not always carry over to other markets.
- Outside the U.S., TikTok’s future looks more stable. Some countries restrict the app on government devices, but few show signs of broader bans. Australia’s Prime Minister Anthony Albanese has ruled out following the U.S. with a national ban. Even so, the spotlight on TikTok signals wider scrutiny of Chinese-owned platforms, and other governments could still tighten data or ownership rules.
- For most countries this isn't a reason to shy away from using TikTok. It's a channel with a highly engaged user base and flourishing health conversations. However, do check in on your government's stance on the issue to assess the risks and calculate the investment you want to make in the channel.
- TikTok is still relatively uncrowded, with few healthcare companies leveraging the platform. Take advantage of this opportunity to connect with your audience.
