Whatever happens, it's probably going to be a recipe on how to force all foreign providers to act the way the local government wants. These days the theme is forcing on the ant-gay stance, they managed to force Netflix a show that had a gay character in it. Besides that charade, they passed laws to control the social media in the name of national security and citizens rights. This comes after Twitter exposed and deleted a pro government troll army.
Anyway, if this happens Facebook, Google, Twitter etc. can start looking into the future of Instagram for Iran, Twitter for Turkey, Google for EU - all forced to partner with a local company and the global versions inaccessible.
I am sure that the US ban of TikTok would be well rationalised but the US could have chosen the EU approach of enforcing US data being kept on US soil. Sad that US choose the Chinese approach of right our of banning(because somehow becoming like China is the way of topping the authoritarian Chinese order). Something tells me that this is not about national security.
Welcome to the world of partitioned internet in the name of national security. A boring dystopia where the less fre world no longer has a role model.
I hope you enjoy the life where the government is telling you what you can and can't use so that the country stays safe. Brilliant system that served all kind of authoritarian regimes.
Good luck to the start-ups, from now on you are looking to a future where you will have to strike a deal with each country you want to operate.
"Your app just crossed the TOP100 mark in the AppStore, would be shame if something happens to it because of national security. Maybe you should sell it to our crony while it's still worth something"