A potential ban on TikTok in the United States has sent shockwaves across the Atlantic, with UK businesses heavily reliant on the platform for reaching American customers fearing “devastating” consequences. The concern stems from a recent bill signed by President Biden, which gives TikTok’s Chinese parent company, ByteDance, nine months to divest its ownership of the app in the US or face a complete block. Unsurprisingly, TikTok has vowed to challenge the legislation in court.
The potential impact on UK businesses is significant. According to TikTok itself, roughly 1.5 million UK businesses are active on the platform. Many, like London-based Perl Cosmetics founder Isobel Perl, have seen substantial growth through the app, with a quarter of their sales now coming from the US market. “A TikTok ban in the US could be potentially devastating to businesses in the UK,” Perl stated, highlighting the platform’s unique ability to connect with customers.
Similar anxieties are shared by Kyle Frank, founder of Franks Remedies, another UK company selling skincare products on TikTok. Frank has meticulously built a customer base on the app, with the US now representing a major portion of its sales. “America is a big market for us,” he explained to BBC World Service’s Marketplace program, “a ban would hurt our business. Certain months, 60-70% of our monthly sales have come from the US.”
The potential blow extends beyond established businesses. For many UK entrepreneurs, TikTok has become a launchpad for reaching a global audience, particularly younger demographics. The app’s focus on short-form video content aligns perfectly with current consumer trends, making it an ideal platform for building brand awareness and driving sales. A US ban would effectively cut them off from a massive and lucrative market.
The reasoning behind the potential ban centers on national security concerns. US officials have expressed anxieties about the Chinese government potentially accessing user data through TikTok. ByteDance has vehemently denied these claims, insisting that US user data is stored outside of China and is not subject to any government influence.
The looming legal battle between TikTok and the US government adds another layer of uncertainty. The outcome could have significant ramifications not just for UK businesses but for the global social media landscape as a whole. A US ban on TikTok could set a precedent for other countries with similar security concerns, potentially leading to a domino effect of restrictions.
While the situation remains fluid, the potential consequences for UK businesses are undeniable. The US market represents a significant growth opportunity for many, and a ban on TikTok would severely hamper their ability to reach American customers. The coming months will be crucial, with the legal battle between TikTok and the US government determining the fate of the platform and the livelihoods of many UK businesses.
