👉 Background: Late last month, after much speculation, Joe Biden signed a new law that would force Bytedance, TikTok’s Chinese owner, to either sell its US business in the next 12 months or otherwise face a ban.
👉 What happened: This law would mean 170 million US TikTok users would miss out on the latest Met Gala outfits and other TikTok-y dance trends. Now, TikTok has issued a 66 page legal complaint against the US Government to defend the ban in court.
👉 What else: TikTok claim that the new law infringes on Americans’ right to free expression under the First Amendment. Given the value of its US users, it's likely that TikTok will take this matter all the way to the Supreme Court.
💡When it comes to consumer facing tech companies, American users are often the golden ticket to success.
💡The US has one of the highest per capita incomes in the world. And that translates into greater spending power among its consumers. Only 17% of all global TikTok users are based in the US, but 40% of TikTok's revenue is generated from the US.
💡 The US has a disproportionately large impact on TikTok's financials, so it’s not surprising that TikTok is trying to push past Congress and Presidents to stay there.
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