Even with potential assurances from Donald Trump, tech giants like Apple, Google, and Oracle face significant risks if they disregard the TikTok ban.
Legal Background and Financial Implications
The Supreme Court recently upheld a law requiring TikTok’s parent company, ByteDance, to sell its U.S. operations. This measure aims to prevent Chinese government access to sensitive American data and information manipulation. The law, effective Sunday, imposes severe penalties for non-compliance.
Ignoring the ban could result in hefty fines for companies facilitating TikTok’s operation. Apple, Google, and Oracle may face $5,000 fines per user accessing or downloading the app through their services. For Oracle, the costs could escalate quickly as fines accrue for all users accessing TikTok through its hosting services.
“These companies must decide whether to risk violating the law despite any assurances from President Trump,” said Wayne Unger, a Quinnipiac University law professor. He emphasized that presidential promises do not hold legal weight.
Trump’s Role and Limitations
President Trump has expressed interest in resolving the issue to keep TikTok operational while addressing national security concerns. On Friday, he hinted at a decision soon, stating on Truth Social, “Stay tuned!” However, legal experts argue that any executive order or promise from Trump lacks the authority to override the law passed by Congress and signed by President Biden.
Justin Hurwitz, a senior fellow at the University of Pennsylvania, explained, “Trump’s assurances might comfort some, but they cannot legally prevent enforcement of the ban. Companies would still risk enormous fines.”
How the Ban Operates
The ban works by compelling service providers to sever ties with TikTok in the U.S. Apple and Google would need to stop offering app updates or downloads. Oracle, as a hosting provider, must block user access to TikTok through its servers. Companies failing to comply could face legal action, with fines retroactively enforced for up to five years.
“This law essentially shuts TikTok down by requiring service providers to disable access,” said Unger. Alan Rozenshtein, a University of Minnesota law professor, noted that the fines for Apple and Google might accumulate slower than for Oracle but still pose substantial risks.
Possibility of a Resolution
The law allows for a 90-day extension if ByteDance moves toward selling its U.S. assets. However, no such progress has been reported. Legal experts believe the ban might pressure ByteDance to accelerate divestiture efforts. U.S. Solicitor General Elizabeth Prelogar recently suggested that the law could compel ByteDance to act, creating opportunities for a sale and resumption of TikTok operations.
Future of Enforcement
The Justice Department could decide to delay enforcement, but this offers little comfort to companies. The law’s five-year enforcement window ensures that penalties could be imposed even after Trump’s presidency. Deputy Attorney General Lisa Monaco indicated compliance would “play out over time.”
Ultimately, tech companies must weigh the risks of non-compliance against the uncertain assurances from Trump. For now, the legal landscape remains fraught with potential liabilities and complexities.
