Weekly Column: TikTok, the Next Chapter

California Sports Lawyer® Founder and Managing Attorney Jeremy Evans has written a column about the future of the social media platform, TikTok.

You can read the full column below. (Past columns can be found, here).

Unless your name is God Almighty, predicting the future is a fools errand. However, every year there is seemingly a host of predictions about markets and what will happen in the coming year. Humans even seek to make New Year’s Resolutions to help implement their goals and aspirations.

The beginning of 2025 will see a new President being sworn-in and a host of challenges to solve and prepare for, while looking for opportunities in investment and development. The future of TikTok is on everyone’s mind in entertainment, media, and sports industries, including politicians and investors. At stake is whether the application will exist in the United States after Monday, January 20, 2025.

First, it is apparent that President Donald J. Trump will sign an Executive Order on Monday, January 20, 2025, delaying the enforcement of the law passed by Congress to outlaw the TikTok platform because it is breaching the privacy rights of millions of Americans through a Chinese-owner with ties to Beijing and the Communist led government. Beijing is in direct competition with the United States for not only economic growth, but also military strength. The Supreme Court of the United States decision to upload the law demonstrates the perfect balance of power through checks and balances. Congress passes laws, courts interpret the law, and the President enforces the law.

Second, it is interesting that it has taken four years to come to this moment in time. TikTok was facing issues of cancellation going back to 2020. It would seem like a mutually beneficial agreement to have American ownership (even if partial) and control of at least oversight into an application that has national security and privacy concerns in America. Common sense even. Financially, yes a great opportunity, but more importantly China does not offer protection for privacy laws in its own country let alone the United States and its citizens. The equivalent would be allowing Russia to run a stock exchange in the United States. It does not mean that diplomacy is dead, it means that statesmanship and deal making is needed now more than ever. Rhetorically, when is it ever not needed. A deal will be done swiftly to have a joint venture. The question always remains, making sure our own politicians are securing our rights and protections. This has been an on-going issue in the United Stated and has led to state legislatures like in California that strengthen privacy protections for its citizens.

Thirdly, there is competition. Competition from platforms that now exist or will later be invented. No company exists in dominance forever. If TikTok falters, it only means another similar platform or service on an existing platform will be created. If the Chinese fail to close a deal in an “Art of the Deal”, it will only be because their value is not in advertising revenue on the platform, but in collecting data on Americans. It could also be for reason of principle.

The third President of the United States, Thomas Jefferson once said, “In matters of style, swim with the current; in matters of principle, stand like a rock.” It is also true that “It is easier to fight for one’s principles than live up to them”, demonstrating the hypocrisy of self-righteousness and ignorance. The point being that principle is often a tricky thing. It can either make one stand the test of time or one fall to its pressures.

All businesses have to adhere to the local laws and regulations. American businesses often have to change their corporate structure, ownership, or policies to start and/or survive on a foreign country. American and foreign companies often have to compromise in a deal to move or exist in one state or or another. The question will be whether China wants to follow that same advice or principle in this circumstance.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.