** The ban will harm the company irreversibly by first stagnating and then declining its user base. TikTok's interim head Vanessa Pappas said the app, which was earlier adding about 424,000 new US users daily, saw a drop of over 500,000 daily active users following Secretary of State Mike Pompeo's announcement that Trump was considering a ban.
** Pappas estimated that if the ban is in place for six months, 80 per cent to 90 per cent of its daily users would not return, citing TikTok's previous experience of a two-week ban by the Indian government in 2019. If the ban is lifted after two months, 40-50% of daily active users would not return.
** The ban would also have a major impact on TikTok's global growth as content made in the United States
is highly exportable to other English-speaking markets like the United Kingdom, Canada and Australia, Pappas said. US content can comprise as much as 60 per cent of the content in TikTok's non-US markets. It will result in a massive decrease in content available globally, where TikTok
has more than 689 million active users, as of July.
** The blow to TikTok's reputation in the United States
also affects relationships with its advertisers. US advertisers are often the most successful at generating revenue for TikTok
because they typically pay better rates for views of their ads than advertisers in other markets, Pappas said in the filing.
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