TikTok ban in US govt phones advances, threatening company’s ad revenue

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The ban will lop off just a small portion of the 130 million American users of the app, but the reputational damage will be long lasting, experts say. Read more at straitstimes.com.

WASHINGTON – A proposal to bar federal employees from using Chinese app TikTok on government devices appeared set to become law, threatening to deal a blow to the company’s reputation and scare off advertisers even if it will not affect many users, experts say.

While the new federal ban is not expected to put a significant dent in TikTok’s estimated 130 million American users, experts consulted by Reuters said the measure could damage the company’s reputation that could, in turn, scare away valuable advertisers. TikTok said in a statement it was “disappointed that Congress has moved to ban TikTok on government devices - a political gesture that will do nothing to advance national security interests - rather than encouraging the Administration to conclude its national security review”.

Many federal agencies, including the White House and the Defense, Homeland Security and State departments, already ban TikTok from government-owned devices.

 

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