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Countdown to TikTok ban has local businesses worried
Businesses that have relied on social media app TikTok are worried as a deadline looms for its parent company to either sell or face a U.S. ban. Fox 10's Lauren Clark has more.
PHOENIX - Time is ticking for social media app TikTok.
Following a law passed last year, the app faces a U.S. ban if its Chinese parent company does not sell to a U.S. company by January 19th.
However, if the law is upheld, TikTok won’t disappear overnight.
It will be removed from app stores so no more people could download it.
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Existing users would still have the app, but without updates or technical support, it would eventually be useless.
It would have consequences for several Valley businesses that rely on the app for marketing.
The power of TikTok is something Jewel’s Bakery and Cafe owner Julie Moreno experienced firsthand.
Customers packed into her restaurant after food blogger Keith Lee reviewed the spot back in March.
"We had lines out the door. We had people calling. We stayed busy for a few months after that!" said Moreno.
"We definitely see the momentum carrying over. We still have people—even last week, who came in and said that they saw us on Keith Lee’s TikTok."
But that could soon be changing as time is running out for social media app juggernaut TikTok.
Last spring, President Biden signed legislation forcing Beijing-based company Byte Dance to sell TikTok by Jan. 19 or face a U.S. ban.
The impending law is fueled by national security concerns surrounding China, including data collection on the 170 million American app users and manipulation of what content to see.
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As the clock is ticking, not everyone agrees this is the right step.
"That’s something that is going to be taken away from so many people - especially small businesses. It’s huge," said Chelsey Hauston, an Arizona Influencer who goes by Letthemeatthis on TikTok.
Her account reaches well over half a million people across Instagram, YouTube and TikTok.
She says the solution isn’t as simple as TikTok users just moving to a different platform.
TikTok’s algorithm is location-based, promoting spots to both locals and visiting tourists.
Unlike other social media sites, those without many followers can still reach thousands.
"On TikTok, anyone can go viral. Anybody can have that moment," said Hauston.
A moment that Adriana Zapata, owner of Cocina Adamex, experienced back in 2022 when several influencers shared videos of the restaurant’s giant chonchas and coffee.
"That was a Saturday. By Monday, we had a line out the door, waiting to come in," Zapata says.
She says months later, people still come in to experience the now iconic treat.
With the risk of TikTok going away, she’s looking at other options to reach customers.
"It might be time to switch gears a little bit, look at some of the platforms we had not invested so much in, and learn how, what do we need to do to boost those videos on those other platforms," she said.
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Jan. 19th might not be the end for TikTok.
President Biden could extend the deadline by 90 days if Byte Dance makes significant progress with the sale.
Other lawmakers are critical, saying this ban would suppress free expression.
Sen. Ed Markey (D-MA) said on Monday he would introduce legislation to extend the deadline by an additional 270 days.