As the date nears for a possible U.S. ban on the video sharing service TikTok, some small companies are saying such a ban would hurt their business.
The U.S. Justice Department has ordered TikTok’s China-based parent, ByteDance, to sell the social media app by January 19 or face the ban. Lawyers for ByteDance and TikTok have sought legal action to temporarily block the Justice Department’s order.
The Supreme Court is expected to consider the matter in January. President-elect Donald Trump, who takes office January 20, has asked the Supreme Court to delay a ban to permit solving the problem through “political means.”
U.S. officials have long warned that TikTok presents national security concerns. The government accuses ByteDance of sharing user data with China’s government. Critics have said China could also use TikTok to spread misinformation and that material published on the service can harm the mental health of young users.
TikTok has repeatedly denied the accusations. The company has said it sees the app as an important tool to support Americans’ right to free speech.
Industry experts have said a U.S. ban on TikTok could affect millions of small businesses that use the service to grow.
TikTok launched in the United States in 2016. Since then, many small business owners have been using it in different ways. These include marketing and advertising campaigns to introduce new products. Many companies also sell goods directly through the app.
TikTok's own estimates suggest small businesses currently using the service would lose more than $1 billion in revenue in a single month if the ban goes into effect.
One example of how TikTok can be used to quickly grow a business is the experience of Desiree Hill. She is the owner of Crown’s Corner Mechanic in Conyers, Georgia.
She told the Associated Press that sharing videos of her work on TikTok helped spread the word online about her business. As a result, the app made her services so popular she was able to open her own shop with five employees 18 months ago.
“Every day I get at least two to three customers that have seen me on TikTok, watched my videos and wanted to become a customer,” Hill said.
If a ban on TikTok is established, many businesses would likely move to other services to reach customers. Instagram Reels, Snapchat and YouTube Shorts are three possibilities. Many small companies already use those apps. But business experts say it might be harder to get teens who have long used TikTok to start using other apps.
Another way for businesses to reduce the effects of a ban would be for them to build a strong base of customers who are willing to provide their contact emails or phone numbers. That permits owners to reach out directly to users with new offers and other marketing messages.
Hill, of Crown Corner Mechanics, worries that other services would not reach as many possible customers as TikTok. She said she is already using YouTube, Instagram and Facebook, but has not been getting the same results.
“I am worried because there is no preparation for this,” Hill told the AP. She added, “If I lose TikTok, I will lose a large part of my business or I will lose my ability to grow anymore.”
Crystal Lister uses TikTok for her business, called Mommy and Me: The Listers, in Cypress, Texas. The company offers interactive educational training in subjects including technology and science. Now, she is seeking to move her offerings to YouTube and Instagram Reels but says TikTok is easier to use.
“It is going to be a challenge if TikTok is banned because we’re losing kind of all the functionality you want,” Lister said. These could include video creation methods and the ability to spread product details through social media. “So we’ll have to use many other platforms to supplement what TikTok did in one.”
I’m Bryan Lynn.
The Associated Press reported this story. Bryan Lynn adapted the report for VOA Learning English.
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Words in This Story
app – n. a small computer program that can be put onto a mobile phone or other electronic device
customer – n. a person or organization that buys goods or services from a shop or business
interactive – adj. involving communication between people
challenge – n. something difficult that tests one’s ability or determination
functionality – n. the way something works
supplement – v. to add things to make something larger or better
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