TikTok on the Edge: U.S. Ban Sparks Global Tensions and Advertising Chaos

The U.S. Supreme Court has upheld a ban on TikTok, based on national security concerns, affecting 170 million American users. The incoming Trump administration aims for a resolution. Advertisers are scrambling to reallocate funds, and U.S.-China trade tensions may rise. TikTok plans to retain its U.S. workforce.

TikTok ceased operations for 170 million U.S. users following the Supreme Court's decision to uphold a ban over national security worries. This follows a 2024 law imposing a shutdown unless its Chinese parent company, ByteDance, sells the app. President-elect Trump has pledged to pursue a political resolution to potentially keep the app active.

As the app vanishes from Apple and Google stores, existing users cannot update it. TikTok continues to pay its U.S. workforce, but users cannot access the app, even through VPNs. Meanwhile, alternatives like Instagram and YouTube are gaining popularity among content creators seeking new platforms.

Faced with a significant shift in advertising dollars, agencies are rapidly planning contingencies. The ban impacts over $11 billion in potential ad revenue, with tech giants like Meta and Snap poised to benefit. The decision could intensify U.S.-China trade tensions, though some see it as a bargaining chip for Trump. Meanwhile, acquisition rumors swirl despite TikTok's firm stance against selling its U.S. operations.

(With inputs from agencies.)