The future of TikTok in the United States: what direction will it take after the approval of the law seeking its ban?

The video platform TikTok announced Wednesday that it will fight a new U.S. law that requires it to cut ties with its Chinese owners or face an outright ban in the United States.

Here’s what could happen next with one of the most downloaded apps in the world:

What does the law say?

The bill signed into law by US President Joe Biden gives TikTok 270 days (approximately nine months) to find a non-Chinese buyer so it can continue operating in the United States. The White House can extend the deadline only once for 90 days.

During that time, the app would continue to work for its approximately 170 million American users.

What will happen in court?

Tiktok has already announced that it will fight the law in US courts, alleging that it seriously violates the right to freedom of expression.

The company has some reasons to believe it will come out on top. In 2020, he survived a similar order from the then president, Republican magnate Donald Trump (2017-2021).

TikTok filed a motion challenging the ban, and a federal judge temporarily blocked Trump’s effort, saying the reasons for banning the app were likely overblown at the time and that the right to free expression was in jeopardy.

Still, the Trump administration attempted to negotiate a deal in which data server company Oracle and supermarket giant Walmart would buy a joint stake in TikTok, but those talks went nowhere.

The new bill enacted by Biden was designed to overcome those same legal headaches, and some experts believe the US Supreme Court may be willing to allow national security considerations to trump free speech protections, although not It’s still safe.

Trump, who will run for president again in the November elections and will face Biden again, changed his position and says he opposes the possible ban because it would benefit Meta, owner of Instagram and Facebook.

Who will buy TikTok?

Finding a buyer for TikTok will not be an easy task given the large resources required.

They could be large technology companies, such as Meta or Google, although they probably will not be able to acquire TikTok because they would run the risk of being accused of a possible monopoly.

Even Microsoft, owner of LinkedIn and now the world’s largest company by market capitalization, would be closely scrutinized by competition regulators.

Oracle might also be interested in a new attempt.

What happens if no one buys it?

Barring any court decision, the deadline to sell Tiktok would be approximately one year from April 24 if a 90-day extension is made.

Then, TikTok would no longer be available in the Apple or Android app stores in the United States, in addition to no more software updates or bug fixes.

In other words, Tiktok would slowly disappear and Bytedance would not be able to update the app, although it could decide to close it completely.

What does China say?

In this battle, China has come to the defense of TikTok.

Beijing does not want a precedent to be set in which a Chinese company is forced in the future to sell one of its most valuable assets, including an algorithm that is the envy of its competitors.

This dispute was even discussed by phone between Biden and Chinese President Xi Jinping at the beginning of the month.

Who will benefit?

The clear winners of an eventual TikTok ban would be Meta and Google, which have launched their own TikTok imitators: Meta’s Reels and YourTube Shorts.

Both alternatives have been gaining ground in the US market, just when Tiktok seems to stagnate.