TikTok has issued a stark warning in a court filing on Monday, revealing that U.S. small businesses and social media creators would lose an estimated $1.3 billion in revenue and earnings in just one month if the app is effectively shut down in the United States on January 19. This potential shutdown is a result of provisions in a law that raises national security concerns regarding TikTok’s China-based parent company, ByteDance.
Blake Chandlee, TikTok’s president of global business solutions, made the declaration as the company asked a federal appeals court to block the law temporarily. The law would require app stores operated by Apple and Google, as well as internet providers, to stop supporting TikTok unless ByteDance sells the app. Chandlee noted that the $1.3 billion figure would likely increase if the shutdown extends beyond a month.
“Almost two million creators in the United States would suffer almost $300 million in lost earnings,” Chandlee said in the filing. Additionally, TikTok itself would lose 29% of its targeted global advertising revenue for 2025. Chandlee emphasized the significant financial consequences for both individual creators and the company itself, underlining the broader economic impact of a ban.
As of November 2024, TikTok reported that more than 7 million U.S. accounts use the app for business purposes, making it a vital tool for small businesses and content creators across the country. The app has become an essential platform for marketing, brand-building, and monetization, especially for small businesses looking to engage with younger, tech-savvy audiences.
The filing also argued that issuing an injunction would be especially important as it would give the incoming administration of President-elect Donald Trump the opportunity to decide whether or not to enforce the law after his inauguration on January 20. TikTok’s legal team is pushing for this temporary block while the appeals court reviews the case.
The ongoing legal battle over TikTok’s future in the U.S. highlights the growing tension between the American government’s national security concerns and the economic and social influence of the app. If the shutdown proceeds as planned, it would mark a major disruption for millions of U.S. users who rely on the platform for their business and income. TikTok’s ability to navigate this legal challenge may determine its continued presence in the U.S. market, and the financial fallout could extend far beyond the company itself.
