Yahoo Finance Tiktok faces uncertainty in the US, but a UK ban seems unlikely
The United States is in motion to ban Tiktok, pending the sale of the platform to an independent non-Chinese buyer, amid concerns over national security.
Tiktok, in response, has been vigorously lobbying against the ban, contesting allegations of data-sharing with the Chinese government or content manipulation.
Similar fears have already prompted the UK to restrict the app’s usage within government institutions. Last year, it banned Tiktok from parliamentary devices across Whitehall, a move that London City Hall also embraced.
While British defence chiefs recently called to further restrict use of the short video clip platform, even concerned MPs have stopped short of calling for a ban or forced sale in the UK.
Alicia Kearns, chair of the commons foreign affairs committee, recently said she was not convinced the government should follow Congress’s lead, but suggested tougher scrutiny of how it uses data was necessary.
No10 has said Tiktok remains a personal choice for members of the public. It added that government experts “continue to monitor threats to our data and we will not hesitate to take further action if necessary, to protect our national security.”
In the absence of any smoking gun, though, there are few grounds on which to ban the app that is hugely popular with businesses and young people.
According to Tiktok, around 1.5m British businesses have Tiktok accounts. They use it to engage with customers and promote their products and services through the app’s online marketplace.
Many individuals including influencers, chefs and artists make money from creating fan bases on Tiktok. Research from Oxford Economics last year, commissioned by Tiktok, estimated that the app contributed £1.6bn to the UK economy in 2022.
With overwhelming support from almost 200 GOP members, the legislation now awaits US Senate approval, with President Joe Biden committed to signing it into law.
But Tiktok’s fate in the US is far from guaranteed as the new bill faces potential legal challenges.
In 2020, then President Donald Trump issued an executive order to block the app from operation in the US. But the company challenged the order in the courts and the order was eventually blocked.
Neither of the UK political parties would conceivably want to come out openly in favour of a ban that could upset many of Britain’s businesses and general population – especially not this close to a general election.
A UK ban on Tiktok is not entirely inconceivable, however.
Parallels could be drawn to previous instances where the UK has forced out Chinese companies from stakes in Sizewell C nuclear power station and Newport Wafer Fab, as well as the ban on Huawei equipment in telecoms networks.
And relations with Beijing can certainly change quickly, as demonstrated by recent accusations from the UK that China has been conducting a campaign of cyberattacks targeting politicians and voters.
But while concerns over foreign influence over the UK are rife – just look at the Telegraph deal – Tiktok’s role differs.
There is limited scope for a comparison to a Huawei situation, where large amounts of core communications infrastructure with links to China was banned in the UK over national security concerns.
Tiktok though is only delivered over critical networks and so lacks the potential ability to disrupt or intercept them.
Tiktok’s US problem is not a new one nor is it disappearing anytime soon. But, in the short term at least, there appears to be little appetite for an outright ban in the UK.
For now, Tiktok has a more pressing problem, and in some ways potentially just as existential threat, on its hands. Universal Music recently stripped its extensive song library from the app that relies heavily on audio – Tiktok was originally called Musical.ly – as it presses for more money.
Universal has accused the short video clip app of unfair practices, seeking to pay significantly less than other platforms for access to its catalogue.
Tiktok has hit back, saying that Universal made a mistake in choosing “to walk away from the powerful support of a platform with well over a billion users that serves as a free promotional and discovery vehicle for their talent.”
It may have a point. If Tiktok proves it can function without hit songs from artists such as Taylor Swift and Drake, then Universal has just shot itself in the foot and may have to limp away with nothing.
But Tiktok’s days of soaring user growth are starting to fade, with Instagram overtaking its downloads last year. As it loses momentum, it may have less weight to throw around and make demands with.
