Here’s which Big Tech rivals would benefit from a crackdown on TikTok

Google, Facebook, and other Big Tech rivals stand to make billions of dollars if there is a national ban on TikTok.

The US government has pressured TikTok to eliminate its connections to China and reduce the risk of American user data being leaked overseas, resulting in possible bans on the app. This would place TikTok’s competitors in a better position to fill in the gap.

Social media platforms such as Instagram, Snapchat, and YouTube have alternative venues to host similar content, which could allow them to earn the advertising dollars that are left in TikTok’s wake.

“The impact of banning TikTok should be positive for YouTube and Instagram,” stated Emile El Nems, a senior executive at Moody’s Investors Service. “Having a competitor like TikTok banned should result in higher revenue share of the total digital advertising wallet.”

TikTok generated $11 billion in revenue, meaning that a ban on the app would split the revenue across all the other platforms.

TikTok has experienced significant growth in recent years. The app has gained 50 million new US users, according to TikTok CEO Shou Zi Chew, bringing the total US user count to 150 million by 2022. At least two-thirds of American teenagers use TikTok on a regular basis, according to a survey by Pew Research.

TikTok’s short-video format and algorithm-based recommendations have been replicated by its competitors, including Instagram Reels and YouTube Shorts. These platforms would stand to gain from having their top rival taken off the market.

However, TikTok’s competitors have reason to fear a regulatory crackdown on the platform. A TikTok ban could undermine their First Amendment protections as speech intermediaries, setting a precedent that would make it easier for the US government to ban them or limit their activities in the future based on purported privacy or national security concerns.

The Committee on Foreign Investment in the United States has demanded that China’s ByteDance sell its stake in TikTok, or risk being banned. Members of Congress have proposed various bills that either restrict or ban TikTok within the US.

TikTok CEO Shou Zi Chew is set to speak before the House Energy and Commerce Committee on Thursday.