This weekend, a bizarre situation left users, TikTok’s parent company ByteDance, and major tech firms scrambling.
The U.S. government banned TikTok. On Sunday, TikTok became inaccessible to 170 million U.S. users. The app disappeared from both the Google Play Store and Apple’s App Store after the Protecting Americans from Apps Controlled by Foreign Adversaries Act took effect.
And then allowed it again. Hours later, TikTok announced on X that it was “in the process of restoring service.” The social media platform thanked President Donald Trump for his assistance in making the app available again.
A questionable message. TikTok credited Trump with “providing the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.” However, it’s unclear whether Trump’s assurances can shield companies from fines.
Trump’s proposal sparks controversy. President Trump posted on Truth Social, urging technology companies “not to let TikTok stay dark.” He announced plans for an executive order to extend the ban’s implementation period and proposed creating a joint venture in which the U.S. government would hold a 50% stake alongside any buyer of TikTok’s U.S. operations. However, ByteDance appears unwilling to sell.
A delicate situation for U.S. companies. TikTok relies on U.S. companies like Oracle (for hosting) and Akamai (as its CDN provider) to operate. Despite TikTok’s announcement, the app remains unavailable on the App Store and Google Play. Apple and Google have expressed concerns about violating the law, which imposes heavy fines for noncompliance.
Astronomical fines at stake. The law sets penalties of up to $5,000 per user for companies continuing to provide TikTok’s services. With 170 million U.S. users, companies like Google, Apple, Oracle, and Akamai could face fines as high as $850 billion.
Criticism from Republicans. Trump’s decision has drawn bipartisan criticism. Republican Senators Tom Cotton and Pete Ricketts issued a joint statement calling Trump’s move “legally baseless.” Cotton later warned on X:
“Any company that hosts, distributes, services, or otherwise facilitates communist-controlled TikTok could face hundreds of billions of dollars of ruinous liability... not just from DOJ, but also under securities law, shareholder lawsuits, and state AGs. Think about it.”
A legally murky situation. Trump assured companies they wouldn’t face liability for helping restore TikTok. However, this raises legal questions about whether an executive order can override federal law. Bloomberg Intelligence’s Matt Shettenhelm told The Verge that companies proceeding under Trump’s assurances are entering legally uncertain territory.
Tech giants remain silent. According to The New York Times, Google and Apple declined to comment, with Apple noting on its website that it must “follow the laws of the jurisdictions in which it operates.” Oracle also refused to issue a public statement.
Image | Xataka On with Grok
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