TikTok is already considering closing activities in the United States

This week, the President of the United States, Joe Biden, signed a law that could ban TikTok in the country. The rule establishes a nine-month deadline for ByteDance, the Chinese company that controls the platform, to transfer its operations to a “trustworthy” American buyer.

The deadline in the rule expires on January 19, 2025, one day before the end of the current term of the US chief executive. It is still possible to extend this period for another three months if the company needs more time to complete the deal.

According to information from the agency Reutersthe Chinese company plans to go to the ultimate legal consequences and prefers to close its activities in the region rather than sell the application.

Currently, TikTok represents a small part of the company’s total revenue. If the platform is actually blocked in American territory, the financial losses would not be so significant.

Will ByteDance give its hand?

Giving up the short video app’s algorithms would be extremely detrimental to the company’s global operations. For this reason, if the court denies your request, it is very likely that ByteDance will cease to operate in the United States.

Shou Zi Chew, CEO of TikTok, said in a statement this week that he hopes to have the Law overturned in court. Shou highlighted that the decision would negatively impact the 170 million Americans who use the platform daily.

Since the administration of former President Donald Trump, the short video app has received accusations of allegedly sharing data collected from users with Chinese authorities. This, in the view of congressmen, would pose a serious risk to US national security.

Even after experts stated that the terms of use of the social network are very similar to those of American platforms, the siege continued to close. The result was a series of political mobilizations by Democrats and Republicans in Congress to end the Chinese company’s activities in the country.