After Biden Signs TikTok Ban Into Law, Top EU Leader Says Not Ruling Out Action Against Chinese Platform: 'We Know Exactly The Danger'
Portfolio Pulse from Ananya Gairola
European Commission President Ursula von der Leyen indicated that a TikTok ban in the EU is possible, following the U.S. where President Biden signed a bill potentially banning TikTok unless ByteDance sells it. The EU has already banned TikTok on corporate phones due to security concerns. This comes as TikTok faces investigations under the EU's Digital Services Act. Observers note that a ban could benefit TikTok's competitors, such as Meta Platforms, Inc. (META) and Snap Inc. (SNAP), which have ties to U.S. Congress members.
April 30, 2024 | 1:39 am
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POSITIVE IMPACT
Meta Platforms, Inc. could potentially benefit from a TikTok ban in the EU, similar to the U.S., due to its competitive position.
Given Meta Platforms, Inc.'s position as a direct competitor to TikTok, any regulatory action against TikTok in the EU, similar to the U.S., could divert users and advertisers to Meta's platforms, potentially boosting its stock price in the short term.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Snap Inc. stands to gain from a TikTok ban in the EU, echoing the situation in the U.S., by attracting users and advertisers.
As TikTok faces regulatory challenges in the EU, Snap Inc. could see a positive impact on its stock price by capturing a portion of TikTok's user base and advertising revenue, similar to potential benefits seen in the U.S. context.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80