• Law4Startups
  • Posts
  • ⚖️ TikTok's Legal and Regulatory Challenges

⚖️ TikTok's Legal and Regulatory Challenges

Author

Liam Gill
January 02, 2025

In partnership with

TikTok's Legal and Regulatory Challenges

The European Commission’s intensified scrutiny of TikTok under the Digital Services Act (DSA) and a U.S. court ruling upholding the potential TikTok ban highlight the increasing intersection of technology, geopolitics, and platform accountability. For startups, these developments emphasize the critical importance of understanding and navigating complex regulatory landscapes. In the EU, TikTok’s algorithmic amplification of potentially harmful election content has drawn scrutiny, while in the U.S., concerns over Chinese ownership have escalated into legislative action requiring ByteDance to divest TikTok.

Tackle your credit card debt by paying 0% interest until nearly 2027

If you have outstanding credit card debt, getting a new 0% intro APR credit card could help ease the pressure while you pay down your balances. Our credit card experts identified top credit cards that are perfect for anyone looking to pay down debt and not add to it! Click through to see what all the hype is about.

Dual Regulatory Pressures for Global Platforms

These cases reflect broader trends: governments worldwide are scrutinizing platforms for national security risks, data sovereignty, and compliance with local laws. The U.S. ruling sets a significant precedent for addressing foreign ownership concerns in tech, reaffirming that national security can override free-market principles. The EU’s enforcement of the DSA and its requirements for transparency and data retention signal a push for robust safeguards against systemic risks, including election interference. Startups operating internationally must anticipate and mitigate risks posed by both national security laws and regulatory frameworks like the DSA.

Action Steps for Startups

  • Geopolitical Risk Management: Startups must assess the potential risks of operating in or partnering with entities from regions facing political tensions. Ownership structures and data flows should be transparent and adaptable to regulatory demands.

  • Proactive Compliance: Align with local regulations like the DSA by implementing content moderation policies, algorithmic transparency, and data access mechanisms. In the U.S., ensure compliance with national security laws, particularly for platforms handling sensitive data.

  • Scenario Planning: Prepare for scenarios such as forced divestitures or operational restrictions by developing alternative market strategies and technological contingencies.

For startups, these developments are a reminder that compliance isn’t just about legal obligations—it’s about maintaining trust with users and stakeholders in an increasingly scrutinized digital ecosystem.

In addition to our newsletter we offer 60+ free legal templates for companies in the UK, Canada and the US. These include employment contracts, investment agreements and more

Newsletter supported by:

Pay No Interest Until Nearly 2027 AND Earn 5% Cash Back

Use a 0% intro APR card to pay off debt.
Transfer your balance and avoid interest charges.
This top card offers 0% APR into 2027 + 5% cash back!