TikTok warned in a court filing that a U.S. ban on the app could cost small businesses and creators $1.3 billion in lost revenue and earnings within the first month. Blake Chandlee, TikTok’s president of global business solutions, stated that the impact would worsen if the ban extends beyond January.

The ban, set to take effect on Jan. 19, would require Apple, Google, and internet providers to halt support for TikTok unless ByteDance, its China-based parent company, divests ownership. TikTok and ByteDance are requesting a temporary injunction to block the law while appealing to the Supreme Court.

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Blake Chandlee, Tiktok’s President of Global Business Solutions.

Chandlee emphasized the law’s economic consequences, noting that small businesses alone could lose over $1 billion in revenue, with creators losing nearly $300 million. TikTok estimates that 7 million U.S. accounts use the platform for business, with 69% reporting increased sales and 39% calling TikTok essential to their operations. The platform contributed $24.2 billion to U.S. GDP in 2023 through advertising and organic reach, with its operations adding $8.5 billion.

The law, signed by President Biden, cites national security concerns over ByteDance’s alleged ties to the Chinese government. A federal appeals court recently upheld the law, rejecting claims that it violates the First Amendment or other constitutional rights. The ruling highlighted the government’s evidence that the measure is narrowly focused on protecting national security.