Adobe and Canva would be the secret winners of a TikTok ban
One of the biggest stories in tech is President Biden's TikTok ban. In April, Biden signed a law that would ban TikTok unless it's sold to non-Chinese ownership in the next year.
However, TikTok's parent company ByteDance has since sued the federal government, alleging First Amendment free speech violations, and Donald Trump, who sought to ban TikTok in 2020, has also reversed his stance, claiming that a TikTok ban would benefit Meta's social media platforms: Facebook and Instagram.
Meta's gains from a potential TikTok ban are obvious: Instagram Reels and TikTok dominate the short-form video market, and Meta could solidify its position as the market leader if its top competitor disappeared.
However, Meta isn't the only company that could benefit from a TikTok ban. Design platforms such as Canva and Adobe stand to be winners as well.
TikTok is ByteDance's most well-known subsidiary, but the parent company also owns CapCut, which controls 81% of the mobile video editor market. While Adobe and Canva's extensive product suites attract enterprise and professional customers, CapCut's mobile-first design has made it the go-to choice for TikTok and Instagram creators, and its number of monthly active users is now three times higher than its closest competitor, Canva.
Bloomberg reported that Biden's divest-or-ban bill was written to include CapCut, meaning that the tens of millions of Americans who have downloaded the video editing platform might have to find an alternative.
Assuming the ban happens, all eyes will be on Zuckerberg, but it will be interesting to see which design platform replaces CapCut as influencers' preferred editing tool.
Meta's gains from a potential TikTok ban are obvious: Instagram Reels and TikTok dominate the short-form video market, and Meta could solidify its position as the market leader if its top competitor disappeared.
However, Meta isn't the only company that could benefit from a TikTok ban. Design platforms such as Canva and Adobe stand to be winners as well.
TikTok is ByteDance's most well-known subsidiary, but the parent company also owns CapCut, which controls 81% of the mobile video editor market. While Adobe and Canva's extensive product suites attract enterprise and professional customers, CapCut's mobile-first design has made it the go-to choice for TikTok and Instagram creators, and its number of monthly active users is now three times higher than its closest competitor, Canva.
Bloomberg reported that Biden's divest-or-ban bill was written to include CapCut, meaning that the tens of millions of Americans who have downloaded the video editing platform might have to find an alternative.
Assuming the ban happens, all eyes will be on Zuckerberg, but it will be interesting to see which design platform replaces CapCut as influencers' preferred editing tool.
