Op-Ed: Is TikTok too big to fail in the US?

The app’s fate could reshape the creator economy—but is it truly irreplaceable?

Image credit: Microsoft Copilot and Canva

TikTok briefly went offline in the United States as a law banning the app on national security grounds took effect but was restored Sunday after then President-elect Donald Trump intervened.

Trump announced plans to delay the ban through an executive order, proposing a deal that would grant the U.S. partial ownership of TikTok, citing its potential value in the "hundreds of billions" and its importance for jobs and cultural influence. ByteDance, TikTok's Chinese owner, has so far refused to sell its U.S. subsidiary despite mounting pressure.

TikTok's massive user base and its role in shaping the digital landscape make it a significant force in the U.S. economy, particularly within the creator economy. While not "too big to fail" in a traditional financial sense like major banks or corporations, banning TikTok would likely have substantial repercussions, especially for industries and individuals reliant on its ecosystem.

TikTok has revolutionized the creator economy by providing a platform for content creators, small businesses, and brands to reach massive audiences with relatively low barriers to entry. Its unique algorithm and emphasis on short-form video have enabled creators to build followings and generate income through brand partnerships, direct payments from the TikTok Creator Fund, and e-commerce integrations like TikTok Shop. If TikTok were banned, creators would lose access to this monetization pipeline, disrupting livelihoods, especially for those who have built entire businesses around the platform. Influencer marketing, a multibillion-dollar industry, would need to adapt quickly to alternative platforms like Instagram Reels, YouTube Shorts, or emerging competitors, but the transition wouldn’t be seamless.

A TikTok ban would also have ripple effects across industries and the broader economy. Advertising revenue streams for brands targeting younger demographics would take a hit, forcing companies to rely more heavily on alternative platforms, which could drive up costs and reduce efficiency. Many small businesses that depend on TikTok’s virality for growth would struggle to replicate that success elsewhere. Additionally, job losses could occur at TikTok’s U.S. offices and among businesses specializing in TikTok-focused services, such as influencer agencies and digital marketing firms.

Culturally, TikTok has become a major driver of trends, influencing everything from music charts to fashion and social activism. Its removal would create a vacuum in how trends are discovered and spread, potentially shifting influence back to platforms like Instagram and YouTube or paving the way for new apps to emerge.

While the U.S. economy would recover over time, the immediate disruption caused by a TikTok ban would be significant. Other platforms, such as YouTube Shorts and Instagram Reels, would likely absorb much of the demand, but creators and brands would need time to adapt their strategies. However, none of these platforms currently replicate TikTok’s exact mix of features, audience engagement, and viral potential.

In summary, TikTok isn't too big to fail, but its loss would leave a noticeable gap in the U.S. economy, particularly in digital advertising and the creator economy. While the broader economy would eventually adapt, the livelihoods of creators and businesses dependent on the platform would face considerable disruption, and it remains uncertain whether an alternative platform could effectively fill TikTok’s unique role.

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