The TikTok ban is set to cause major havoc to Georgia’s economy. What you need to know
If you are one of the 3 million Georgia residents who use TikTok, you may have to find another platform on which to waste hours and hours of your life.
Come Jan. 25, 2025, if TikTok’s owners don’t sell the whole platform to an American-owned entity, many of us will have a lot more time on our hands.
What do I need to know?
In April 2024, President Joe Biden signed the bill, “Protecting Americans From Foreign Adversary Controlled Applications Act” (PAFACA) which requires ByteDance to sell TikTok a non-Chinese entity by Sunday, Jan. 19, 2025. As of Friday, Dec. 6, a federal appeals court upheld the law that could potentially lead to a ban of the social media platform.
One of the major catalysts for the app’s ban is national security threats concerning TikTok’s Chinese parenting company, ByteDance. Lawmakers are worried the company could be forced by the Chinese government to share user data, posing a risk to American users’ personal data.
The law makes it illegal for companies to:
Distribute, maintain or update foreign adversary-controlled applications; and
Host internet services that provide services that enable the distribution, maintenance, or updating of such applications.
The primary goal of the bill is to prevent foreign adversaries from “targeting, surveilling and manipulating Americans through the use of online applications.” However, some critics feel the ban is a threat to free speech and creative expression.
TikTok and ByteDance have filed a lawsuit challenging the constitutionality of the PAFACA, arguing that it violates the First Amendment’s Free Speech Clause, the Bill of Attainder Clause, the Takings Clause, and the equal protection component of the Fifth Amendment’s Due Process Clause.
However, the situation is far from resolved and remains uncertain due to potential appeals to the Supreme Court and shifting political stances, including President-elect Donald Trump’s recent opposition to the ban.
What are the implications for Georgians?
Georgia ranks among the top five states most obsessed with TikTok, with an average of 4,890 monthly searches per 100,000 residents, averaging nearly 3.43 hours per day on social media apps like TikTok. Approximately 300,000 businesses in Georgia use TikTok, and 90% of these small businesses reported increased sales and sold out products due to their presence on the platform
Economic — Georgia’s economy will suffer a significant drop in the generated TikTok revenue of $750 million. Small businesses that rely on it for customer engagement and marketing will suffer the most.
For state employees and students — This is an extension of an existing state law that reinforces a ban on foreign-controlled social media platforms for state employees and public school K-12 students, making access more difficult.
Community impact — Many entrepreneurs and creators, particularly minority-owned businesses, will lose financial and networking opportunities and brand deals, further contributing to the financial losses. The ban would disproportionately affect marginalized communities and would probably exacerbate existing inequalities which will, in turn, limit economic and social mobility.
User inconvenience — Once the app goes away, users will need to export their data before the bans take effect, which is likely to be a laborious and cumbersome process. The transition will also contribute to a loss of followers and engagement, which are the major revenue drivers for many creators.
A TikTok ban is not just bad for teenagers and influencers, it will likely have a much more significant impact on Georgia’s economic success as a whole. It will certainly be detrimental to smaller creators and influencers, and in this economy, everyone needs all the help they can get.
This story was originally published December 9, 2024 at 3:32 PM with the headline "The TikTok ban is set to cause major havoc to Georgia’s economy. What you need to know."
