TikTok is in a “fight for survival” in the US, where the Chinese app could be banned if its parent company ByteDance does not divest all of its capital by January 19.

TikTok claims that the divestment is not technologically, commercially or legally feasible and is asking the court to issue a temporary restraining order.

More than 170 million Americans use TikTok. The company’s lawyers argue the ban violates First Amendment rights, while U.S. lawmakers cite the app’s national security risks.

President-elect Donald Trump – who wanted to ban TikTok in 2020 – has now “turned the tables” and filed a request to delay the ban.

If TikTok is still banned on January 19, how will the ban be enforced?

By law, new users cannot download TikTok from app stores like the App Store and Play Store, and existing users cannot update because the law prohibits any legal entity from facilitating the download and maintenance of the app.

In a letter dated December 13, 12, US lawmakers asked Apple and Google to be ready to remove TikTok from their respective markets by January 2024.

The relationship between cloud provider Oracle and TikTok has also been affected. Oracle stores TikTok’s US user data on its servers, reviews the source code and provides apps to marketplaces.

While TikTok is still available to current users, over time, without software and security updates, the app will become useless. Creators who monetize their TikTok followers are preparing for the worst.

According to Nadya Okamoto – an account with 4,1 million followers, the app helps her grow her business naturally through video hot. The TikTok ban could force her and other small business owners to spend more on marketing and increase expenses.

For TikTok’s roughly 7.000 U.S. employees, the situation is grim. One employee said they’re starting to worry about being laid off. Still, TikTok is posting new job openings, leaving some confused and asking for advice on job boards.

TikTok’s U.S. ad revenue is expected to reach $12,3 billion by 2024, according to research firm Emarketer. While that’s a much smaller number than Meta’s, advertisers say TikTok’s user base is quite loyal.

The company’s social commerce feature (buying products directly while watching videos) is unrivaled, making it difficult for advertisers to convert.

Craig Atkinson, CEO of digital marketing firm Code3, said they still have a new contract to build TikTok campaigns through December 12.

Jason Lee, vice president of advertising at Horizon Media, predicted that some advertisers would continue to spend money on TikTok after January 19 and would reassess if they saw a drop in usage or performance.

TikTok has repeatedly said that ByteDance cannot sell the company. However, this has not stopped billionaire entrepreneur Frank McCourt from pursuing a takeover of the app. He said he has received a verbal commitment from a consortium of investors to buy TikTok for $20 billion.

On the Chinese side, ByteDance needs approval by law to sell TikTok. In March 3, Beijing signaled its opposition to a forced sale of the app.

Coupled with the statement that it is impossible to divest from TikTok, China’s approval of the sale is very unlikely. The Guardian identify.

(According to The Guardian)