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Why Meta and YouTube likely to benefit if US bans TikTok?

Naushad K. Cherrayil
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Why Meta and YouTube likely to benefit if US bans TikTok?
  • A ban could set precedence for other countries to impose the same measures, especially from those countries that raise national security concerns over the ties that ByteDance has with the Chinese government.
  • A ban will create a political dimension in acute tensions between the United States and China.

Facebook’s Meta and Google’s YouTube have the most robust ecosystems for creators, advertisers, and users, making them the likeliest winners if the US happens to enforce the ban on TikTok starting January 19, 2025.

However, smaller platforms like Snap could become much bigger in the coming years, particularly among young Generation Z, those who really value authenticity and closeness in the way they interacted in society.

ByteDance, the owner of TikTok, has been upheld by an Appeals Court on Friday, with the new statute that can compel it to sell its famous short-form video application or having it banned entirely throughout the country. It technically does not ban TikTok; but rather, limits app stores such as Apple’s App Store or even Google Play Store not to distribute it unless ByteDance parts with the social network.

Such a ruling actually knocks TikTok off its feet, but not yet the end of the road. It is expected that the company would move the law to the Supreme Court, which then will seal the final verdict on this matter.

Should the law finally be enforced, the blow will make in terms of TikTok content creators, advertisers, and even the app’s 170 million users. It was in August 2020 that Donald Trump, President, proposed banning TikTok and WeChat, both owned by China.

Courts effectively blocked the action. In June 2021, President Biden rescinded a number of the Trump administration’s orders forbidding new commercial downloads of both WeChat and TikTok. In a turn of events, legislators soon afterwards moved a bill requiring divestiture from ByteDance or else face an outright ban. It was overwhelmingly passed by the US House and then by the Senate.

The president would have to find that TikTok has been rendered to be “deemed a qualified divestiture,” which free it from control of and strictly operate independent from a Chinese entity. When Biden signed the bill in April, a clock began ticking 270 days.

If the President establishes certified pathways to divestiture and demonstrates signs of “significant” advancement toward a potential sale, or binding agreements are reached legally, he may extend the final stage of the deal to an additional 90 days for its finalization.

Should the prohibition, however, take effect, TikTok’s application for the US Apple App Store or Google Play app stores will be removed, making it unavailable for new downloads. Access to the app may be prohibited through ISPs or mobile networks for existing users.

The second scenario involves the US government compelling TikTok’s parent company, ByteDance, to divest its US business operations within an American company. This has been proposed in the past, with companies like Microsoft and Oracle previously expressing interest.

Global ramifications

It’s a big hit in dollars for the Chinese giant as the loss of the US market is among the biggest and the best markets for TikTok. A ban in the United States could set precedence for other countries to impose the same measures, especially from those countries that raise national security concerns over the ties that ByteDance has with the Chinese government.

But one company will not fail to profit from the ban and that is Mark Zuckerberg’s Meta. The technology company has not only that largest competing engine in the world, but also the mainstream social networking application closest to TikTok for user base and feature set.

Meta launched Reels, which Zuckerberg has continually praised on the earnings calls, as a counterproductive measure against TikTok’s rise.

So basically, the company has been going on all out since 2020 to introduce some new Reels feature that provides a great method through which the users can view more content on the photo-sharing and video-sharing apps, and even beyond that.

 Further, since then, we have also seen Meta using AI to modify the recommendation feed, thus making Reels much more addicting so that users not only try it once but enter the never-ending cycle of one video after another as they do on TikTok.

Reels continue to do well, and since these creators of TikTok will eventually migrate to this platform if their chosen app is banned in the US, they will bring along with them their fans as well as their advertisers; this generally boosts Meta’s revenue potential.

Meta is not the only company that would benefit from the ban on TikTok, as other rivals would get a boost from this uplift. It is expected that YouTube would also benefit from the rise of Shorts later. With both advertisements going towards it, a heavy boost would be gained to this much lauded Google owned short-form video service.

This stems from the law of prohibition against TikTok which has been given birth by national security issues relating ByteDance’s ownership of the app and the ties of the company with the Chinese government.

The US officials fear that a Chinese government force could use TikTok as an instrument to spy on American users or the spread of awry pro-China propaganda.

TikTok denied the allegations, while the US has yet to present any direct proofs that the Chinese government is actively using the app to survey its users.

Congress is now acting on behalf of their constituents. The fight over TikTok is within the scope of the Supreme Court now. There is also a tiny possibility that President-elect Trump may throw in his weight for TikTok.

He was the one who started moves to outlaw the social media app in the first place, but now he has mellowed down in that initiative.

China-US relations

The probable deprivation of the US access to TikTok raises real stakes across all levels- economic, social, and political. Most especially, the rumored possibility of banning what is currently the most popular platform in the world, particularly with the younger population, would entail serious outcome consequences.

Mainly, a blanket ban would disturb the entire digital advertising ecosystem. TikTok is a well-to-do territory for the brands that think of making their business with the consumers in new ways.

Now, businesses, especially the small and medium enterprises that have leveraged the unique TikTok algorithm to hit their target audience, will find themselves empty of opportunities to advertise things-as in all possible ways of advertising. And, subsequently, that can cause reduced revenue and consider layoffs in industries relying on that platform for branding.

Socially, it can leave a void in the online expression and creativity. This digital space gives rise to a new community of users sharing culture, social issues, and personal experiences through user-generated content. The ban would limit voices and creativity sustained on the platform, and it would hit the way communities build themselves, as individuals use TikTok to connect over shared interests and experiences.

This ban will create a political dimension in acute tensions between the United States and China. This affects the fact that Tik Tok is owned by ByteDance, a Chinese company. This would be seen as an effort to limit the foreign influence in the American digital spaces; hence, it can also lead to retaliation from China, creating further complications in international relations.

Emerging Apps

• BeReal: Aimed at those who detract from heavily curated apps. BeReal’s major attraction is a philosophy that promotes authenticity.

• Triller: Scope of that particular platform introduction has long since been ignored. But again, it has not performed to warrant its existence.

• Pinterest: There is a possibility that Pinterest’s push for video pins will see higher traffic, with new content creators coming looking for outlets.

No more close calls: AI’s role in workplace safety

Contributor
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No more close calls: AI’s role in workplace safety
  • The tools are already here. Now, it’s about leveraging them to their full potential.
  • True potential of workplace safety is unlocked when there is a perfect synergy between AI-driven safety software and the expertise of EHS teams.

Have you ever wished for a miracle while managing a bustling worksite with cranes swinging overhead, forklifts navigating tight corners, and heavy machinery roaring in the background—all at the same time?

On top of that, imagine being responsible for worker safety when someone unknowingly steps into a restricted zone without wearing proper personal protective equipment (PPE).

In such chaotic environments, even the most vigilant supervisors can miss critical moments.

With AI-powered safety management systems, this scenario unfolds differently. Within seconds, the system identifies the breach, sends real-time alerts to the environment, health and safety (EHS) team, and prompts immediate corrective action—averting a potential accident.

Gary Ng.

According to the 2024 report from McKinsey, while in the past six years, AI adoption by organisations stood at around 50 per cent, this year the jump to 72 per cent has been observed.

The burning question still stands—Can AI for workplace safety offer the same level of assurance as a hands-on EHS manager?

AI-powered EHS monitoring systems collect real-time data, adapting seamlessly to the evolving conditions of a worksite—whether it’s adjusting to rising temperatures in a mining operation or detecting a crane operator distracted by a call on the cell phone.

However, the true potential of workplace safety is unlocked when there is a perfect synergy between AI-driven safety software and the expertise of EHS teams. This collaboration creates a robust safety ecosystem, where technology and human oversight work hand-in-hand to anticipate, detect, and mitigate risks more effectively.

Let’s explore how!

AI as a proactive safety partner

The transformative power of AI for workplace safety lies in its ability to anticipate dangers and act proactively. For instance, the inclusion of computer vision for safety continuously scans worksites, detecting violations like missing PPE, unsafe machinery operation, or workers entering hazardous zones.

Unlike periodic human checks, AI operates 24/7, ensuring nothing slips through the cracks.

Analysing data for safety insights

Data is a goldmine for improving safety outcomes. Every near-miss, incident, or equipment failure holds lessons. Through AI video analytics, companies can uncover patterns and gain actionable insights.

For example, let’s say a particular area on the factory floor or construction site sees a higher frequency of slips or falls.

The AI video analytics integrated into the system doesn’t just identify the incident; it goes a step further by analyzing the environment. It may be noted that poor lighting or slippery flooring is a contributing factor and can automatically suggest changes—such as installing better lighting or upgrading flooring materials.

The true value of this analytical power lies in its ability to guide EHS teams toward data-driven decisions that continuously refine and improve safety protocols. Instead of relying on anecdotal evidence or reactive measures, AI allows for a more precise, evidence-backed approach to safety management.

GenAI enhancing safety solutions

In high-risk and labour-intensive industries, standard safety guidelines often aren’t enough to tackle the unique challenges that arise on-site. This is where Generative AI steps in, offering the ability to craft bespoke safety solutions tailored to specific site conditions.

By simulating various scenarios, Generative AI can develop customized safety plans, including evacuation routes, risk assessments, and training modules that mirror real-life challenges. This adaptability ensures that safety measures evolve as conditions change, helping organisations stay one step ahead in managing risks.

Virtual assistants boosting communication

Conversational AI chatbots act as virtual assistants to EHS managers on site. From providing updates on project schedules to summarising the day’s compliance report in a click, the communication flow gathers substantial pace.

Suppose a worker is having severe back pain issues on a busy day at work. Unable to understand the reason, he types in a prompt on the safety chatbot – “I’ve been working on a construction site for the past six hours, constantly bending and lifting heavy materials. Now, my back hurts severely. Can you look into my posture analysis?”

Using ergonomic assessments through computer vision technology, the AI can summarise the worker’s movements during the tasks for the day and suggest – “It seems that your posture is strained due to prolonged bending and heavy lifting. I recommend adjusting your stance to keep your back straight and knees slightly bent when lifting. Take a 10-minute break, stretch, and hydrate. If the pain persists, report to the onsite health team for a check-up.”

It does sound futuristic but conversational AI chatbots like viGent are already implementing such communicative processes for workplace safety in the real world.

Managing safety involves more than just monitoring—it requires audits, compliance checks, and meticulous record-keeping. From generating digital checklists to sending automated alerts, AI ensures no detail is overlooked.

AI is reshaping workplace safety, not by replacing human oversight, but by enhancing it. The tools are already here. Now, it’s about leveraging them to their full potential!

  • Gary Ng is the CEO and Co-Founder of viAct, one of Asia’s top Sustainability-focused AI company that provides “Scenario-based Vision Intelligence” solutions for risk prone workplaces.

Baidu AI compatibility issues slow Apple’s progress in China

Ana Mary Joseph
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Baidu AI compatibility issues slow Apple’s progress in China
  • Absence of robust AI functionality could diminish the appeal of Apple’s latest offerings.
  • Resolution of these challenges will be crucial for Apple to regain and maintain its market share in this increasingly critical region.
  • Apple’s commitment to stringent data privacy policies complicates matters.

As the global technology landscape shifts towards artificial intelligence (AI), Apple is striving to incorporate AI capabilities into its products in China, in collaboration with Baidu.

Despite these efforts, recent reports indicate that both companies are encountering significant hurdles that could adversely affect Apple’s sales in the country, which is a key market for the tech giant.

One of the primary challenges involves the adaptation of Baidu’s large language models (LLMs) for use on Apple devices. Issues such as the models’ comprehension of user prompts and their reliability in delivering accurate responses are critical to the success of this integration.

The reported inefficiencies in these LLMs raise questions about their ability to enhance the user experience, a factor that is increasingly important in a competitive smartphone market.

In addition to technological challenges, market dynamics also present a pressing concern. Recent sales data from IDC indicates that iPhone sales in China have declined by 0.3 per cent, while rival Huawei has experienced a remarkable 42 per cent increase in sales in the third quarter.

The sharp contrast highlights the intensifying competition within the world’s largest smartphone market, suggesting that Apple must innovate rapidly to maintain its market position.

Data collection

The recent launch of the iPhone 16 has drawn criticism within China, primarily due to its perceived inadequacy regarding AI features. This feedback reflects a growing expectation among consumers for advanced technology, particularly in a region where competitors are quick to adapt and innovate.

As such, the absence of robust AI functionality could diminish the appeal of Apple’s latest offerings.

Furthermore, Apple’s commitment to stringent privacy policies complicates matters. By prohibiting the collection of data from users who engage with AI services, Apple restricts its ability to refine and enhance these features based on user interactions.

In contrast, Baidu has expressed a desire to collect and analyse user data to improve its models, creating a potential conflict in collaboration that could hinder progress.

The integration of Baidu’s Ernie 4.0 model into Apple’s generative AI capabilities for its devices represents a pivotal partnership.

Additionally, enhancements to Apple’s Siri using Baidu’s AI technologies could potentially position Apple favorably in the market. However, unless these issues are addressed effectively, the potential for success remains in jeopardy.

CIOs in MENA to boost spending on data centre systems in 2025

Mohammed Fahad
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CIOs in MENA to boost spending on data centre systems in 2025
  • IT spending is projected to total $230.7b in 2025, an increase of 7.4% from 2024.
  • Governments and private sector enterprises in MENA are investing heavily to position the region as a world-leading AI innovation hub.
  • CIOs will take a more focused approach toward GenAI projects next year, leveraging the experience gained from their pilots.

Chief Information Officers (CIOs) in the Middle East and North Africa (MENA) are expected to increase their investment in data centre technologies in 2025, reflecting a significant shift towards modern technological infrastructure.

According to Gartner analysts, the strategic direction aligns with the growing adoption of artificial intelligence (AI) and cloud services, as well as a burgeoning demand for data storage and processing capabilities.

Mim Burt, Managing Vice President Analyst at Gartner, said that both governmental bodies and private enterprises are heavily investing in the region to position MENA as a preeminent hub for AI innovation.

The data centre segment is poised for considerable growth, with a projected annual increase of 14.9 per cent in 2025.

The remarkable growth could be attributed to local organisations escalating their research and development expenditures, aimed at fostering new business models and enhancing customer experiences.

GenAI investments on the rise

“Such initiatives not only enhance the competitiveness of these organisations on a global scale but also serve to bolster overall IT spending across the region. Prominently, major hyper-scalers are also committing resources to data centre systems, enhancing the sustainability and scalability of AI-embedded cloud infrastructures,” Burt said.

In parallel, software spending in MENA is expected to rise by 13.7 per cent in 2025, driven largely by heightened CIO investments in generative AI (GenAI) applications.

Burt noted that MENA CIOs are increasingly allocating their budgets towards GenAI, cloud services, and cybersecurity software. This investment aims to enhance digital workplaces and customer experiences, ultimately leading to improved product quality and service delivery.

Moreover, as CIOs embark on more focused approaches to their GenAI projects starting 2025, they will rely on the insights gained from initial pilot programs.

Eyad Tachwali, Sr. Director Advisory at Gartner, said that while the initial hype surrounding GenAI has diminished, a more nuanced understanding of its complexities is developing.

“CIOs are now recognising the need to align their use cases with business priorities and invest in both AI literacy and practical application to derive tangible value from their GenAI initiatives.”

China surpasses Germany to rank third in industrial robot density

Ana Mary Joseph
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China surpasses Germany to rank third in industrial robot density
  • China’s aggressive investments in automation technology, raises concerns about Germany’s competitive edge in the global marketplace.
  • Germany must reassess its approach to automation and innovation to maintain its relevance in an increasingly competitive global economy.

China has overtaken Germany, now ranking third globally in robot density, as of 2023, with 470 industrial robots per 10,000 employees—indicative of more than double its density in 2019, according to International Federation of Robotics (IFR) report.

The shift underscores not only the rapid modernisation of China’s industrial capabilities but also the mounting challenges faced by Germany, Europe’s largest economy.

South Korea continues to lead the world with a remarkable density of 1,012 robots per 10,000 employees, followed by Singapore with 770 robots per 10,000 employees.

Intensified competition

Contrastingly, Germany’s robot density, now at 429 per 10,000 workers, demonstrates a more modest growth rate of 5 per cent since 2018. The stagnation, coupled with China’s aggressive investments in automation technology, raises concerns about Germany’s competitive edge in the global marketplace.

Germany has traditionally depended on its robust industrial base and strong export performance to drive economic growth. However, the effects of intensified competition from countries such as China are becoming increasingly pronounced.

The anticipated economic contraction for Germany in 2024, which marks the second consecutive year of downturn, positions it unfavourably among the Group of Seven wealthy democracies, further amplifying the urgency for strategic adaptations.

According to the report, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2 per cent, with Germany, Sweden, Denmark and Slovenia in the global top ten.

North America´s robot density is 197 units per 10,000 employees – up 4.2 per cent. The United States ranks eleventh in the world among the most automated countries in the manufacturing industry.

Asia has a robot density of 182 units per 10,000 persons employed in manufacturing – an increase of 7.6 per cent. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.

Buyouts and mergers propel data centre boom in Asia Pacific

Mohammed Fahad
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Buyouts and mergers propel data centre boom in Asia Pacific
  • APAC market remains appealing for investment, exhibiting significant growth potential despite being relatively nascent compared to its American and European counterparts.
  • Urgency for localised data centres due to data localisation laws are driving unprecedented demand, particularly in Southeast Asia.

The Asia Pacific (APAC) data centre market is currently experiencing a remarkable surge in mergers and acquisitions (M&A), propelled by strong consumer demand and a constrained asset landscape.

With significant deals capturing headlines, such as Blackstone’s historic AU$24 billion (approximately $16 billion) acquisition of Australian data centre platform AirTrunk, the momentum of M&A activity is indicative of the broader trends reshaping the industry.

The acquisition, recognised as the largest of its kind in data centre history, alongside DigitalBridge’s acquisition of Yondr Group—a global developer of hyperscale data centres—highlights the aggressive consolidation strategies employed by major players in this burgeoning sector.

Moreover, the third quarter of 2024 showcased a remarkable year-on-year increase of 114 per cent in investment, reaching $2.8 billion, as reported by JLL’s Capital Tracker. This statistic underscores not only the appeal of large-scale mergers but also the rising prevalence of asset-level transactions.

Evolving investment landscape

One notable example includes the 734 billion South Korean Won sale of Hanam Data Centre by IGIS Asset Management—the first sale of a fully operational and pre-committed data centre in South Korea.

The shift towards asset-level deals, formerly uncommon due to operators’ preference for owning their facilities, reflects the evolving investment landscape in markets such as Japan and Korea, where savvy investors are successfully acquiring critical resources like land and power.

The driving forces behind this M&A frenzy include robust demand from consumers, cloud service providers, and the burgeoning need for artificial intelligence infrastructure. As articulated by industry experts, limited asset availability, coupled with favourable market conditions, exacerbates this demand surge.

Maximising value

Bob Tan, Executive Director of Capital Markets Transactions at JLL, said the critical juncture the sector faces, with many data centres in APAC nearing operational status.

Thus, operators and investors are confronted with strategic decisions regarding asset management, which may lead to further M&A activities or joint ventures in pursuit of maximising value.

According to Celina Chua, Director of Data Centre Client Solutions at JLL, the APAC market remains appealing for investment, exhibiting significant growth potential despite being relatively nascent compared to its American and European counterparts.

Factors such as increasing mobile penetration and the urgency for localised data centres due to data localisation laws are driving unprecedented demand, particularly in Southeast Asia. In more mature markets like Japan and Australia, government initiatives aimed at digital transformation intensify this momentum.

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