MOSCOW, March 16 – TikTok’s revenues in the United States spiralled up to a record US$16 billion last year as the social media giant braces for the possibility of being banned in US territory this year, reported Sputnik quoting a Financial Times report on Friday, citing people familiar with the matter.
On Wednesday, the US House of Representatives passed legislation that requires TikTok either to be sold to a non-Chinese company within 180 days or face a ban in the US, amid concerns about user privacy and foreign influence ahead of the November presidential election.
The bill, however, still needs to be approved by the Senate and signed into law by US President Joe Biden.
The China-based owner of the platform, ByteDance, generated as much as US$120 billion in 2023, which is a 40 per cent increase compared with the year before, mostly driven by TikTok’s sales even though most of it comes from the Chinese market, the newspaper reported, adding, however, that it could not obtain a confirmation comment from ByteDance.
A ban in the US would cause serious consequences for both TikTok and its parent company, as numerous US influencers leaving the platform could decrease its attractiveness for users in other countries as well, the Financial Times said.
China, for its part, has repeatedly opposed the forced sale of TikTok, while TikTok head Shou Zi Chew has made it clear that should the legislation be passed, the platform would be banned, according to the report.
The United States has long banned TikTok on all US government devices and some state government devices. The social media platform has been thoroughly studied by the US authorities, concerned that the application may be used by the Chinese government to collect information on users and to spread propaganda.
