Without TikTok, small businesses and creators in the U.S. would lose $1.3 billion in a month, according to a report.
TikTok warned in a court filing on Monday that if the app is effectively banned on January 19, 2025, under a national security law targeting ByteDance, small businesses and social media creators in the U.S. could lose up to $1.3 billion in revenue and earnings in a month.
"If the ban were to last beyond a month, that number would go up," said Blake Chandlee, TikTok's global head of business solutions.
The statement was filed as TikTok asked a federal appeals court to temporarily block the law, which would require Apple (AAPL) and Google (GOOG, GOOGL) to stop supporting TikTok on January 19, 2025, if ByteDance doesn't sell the app, and internet service providers would be required to stop supporting TikTok.
TikTok and ByteDance plan to appeal to the U.S. Supreme Court, seeking to overturn a recent ruling by the D.C. Circuit Court of Appeals that upheld the law. The filing said: "Tiktok and ByteDance believe that the Supreme Court, as the only court with jurisdiction to hear the appeal, should have the opportunity to decide whether to review this critical case."
If the appeals court grants the temporary injunction, TikTok can continue to operate until the Supreme Court decides whether to hear the case.
The temporary injunction is particularly important, the filing said, because it would give the new administration that takes office on January 20, 2024, an opportunity to reevaluate whether to enforce the law.
Even if TikTok is banned in the U.S. for just a month, Chandlee said, small businesses in the U.S. would lose more than $1 billion in revenue. "The revenue of nearly 2 million creators in the U.S. would be reduced by nearly $300 million, and TikTok's own global advertising revenue target for 2025 would be reduced by 29%," he said.
As of November 2024, more than 7 million accounts in the U.S. were using TikTok for business activities, according to Chandlee, with 69% of those businesses saying TikTok helped boost sales in the past year, and 39% saying TikTok was critical to their survival.
TikTok's operations also contributed $8.5 billion to the U.S. gross domestic product in 2023, according to a report by the Oxford Economics Institute prepared for TikTok, Chandlee said, adding that these businesses generated $24.2 billion in revenue through TikTok's advertising, marketing and "organic traffic."
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