The Washington Post commented, Meta’s tactics to scare opponents are unusual in Silicon Valley, where companies often try to crush each other in business rather than in politics.
It’s unclear what role the tactics Meta used played in the bill to ban TikTok. However, Meta is ready to reap the rewards if TikTok disappears. And they won’t be the only beneficiaries.
A few months after Meta launched Reels, Google’s YouTube also introduced its own short-format video feature, YouTube Shorts. If TikTok is eliminated, what Google gets will be almost the same as Facebook.
Analyst firm eMarketer predicts that Meta could account for about 22.5 to 27.5% of TikTok’s advertising revenue in the US, adding more than $2 billion in profits by 2025. Meanwhile, Google could account for about 15% of TikTok’s advertising revenue. to 20%.
“Instagram Reels and YouTube Shorts are where most TikTok users will migrate,” said Jasmine Enberg, principal social media analyst at eMarketer. While neither is a perfect replacement for TikTok, still “they are the most suitable” for both users and advertisers.
That’s what happened when India banned TikTok.
“When TikTok was banned in India, creators turned to Instagram Reels and YouTube Shorts,” said Bhaskar Chakravorti, dean of the School of Global Business at Tufts University’s Fletcher School. “Of course, they had to rebuild their audience and some of TikTok’s attractive features were lost, but life goes on. Meta and Google are the beneficiaries – their products are sufficient alternatives well. You can expect the same in America, until a new, smarter social network comes along.”
According to Enberg, several other US technology companies also see benefits. For example, Amazon can “breathe a sigh of relief if TikTok Shop disappears”, she said.
In addition, there are other “profitable” online search and advertising businesses. Damian Rollison, director of market intelligence at marketing platform SOCi, notes TikTok and Instagram recently overtook Google as the go-to site for young people searching for businesses online.
Theo The Washington Post, The US government’s first major legislative crackdown on social media is essentially a gift to domestic Big Tech. Ironically, this move took place at the same time that the Biden administration was suing Meta, Google, Amazon and Apple for market monopoly. In particular, Meta is defensive by pointing out competition from TikTok.
Evan Greer, director of the nonprofit Fight for the Future, argued that Congressional efforts should be directed toward privacy and antitrust laws rather than a bill targeting a single company. “Banning TikTok without real technology regulation will only further strengthen monopolies like Meta and Google,” he said. Greer said.
