Other than it's yet another hit piece (YAHP at this point) against TikTok, not really. Are they doing shady shit? Probably. Is there a social media site who isn't doing shady shit? Probably not. As such, will this kill TikTok? Probably not.
TikTok, even with this change, is still primarily connecting users to users, and not users to brands. This makes them more valuable than any other social media site to those users. Even when TikTok makes missteps.
I honestly believe US Entrepreneurs want TikTok's word-of-mouth success with Facebook's profit margins. But they miss what makes TikTok good - what it connects users to.
Instagram, Snap, even YouTube have the video format down well enough - it's the community they can't just re-create (without changing how they do monetization). A vast majority of creators I follow on TT are on IG and YT, yet I'm never shown their videos. I am, however, shown about a billion ads and repeated videos for every novel video I see.
TikTok, even with this change, is still primarily connecting users to users, and not users to brands. This makes them more valuable than any other social media site to those users. Even when TikTok makes missteps.