Silke Mayr Tech Companies Face High Stakes Despite Assurances
Even with promises from Donald Trump, Apple, Google, and Oracle risk severe penalties by ignoring the TikTok ban.
WASHINGTON — The TikTok ban, taking effect Sunday, poses significant risks for tech giants, even if President-elect Donald Trump offers reassurances. Apple, Google, and Oracle face legal and financial consequences for non-compliance, including steep fines.
The law, upheld by the Supreme Court on Friday, mandates ByteDance, TikTok’s Chinese parent, to divest its U.S. assets to continue operating domestically. Congress passed the law to address concerns about national security, including fears of Chinese government access to sensitive data and the spread of disinformation.
Trump, who assumes office Monday, has indicated a willingness to find solutions preserving TikTok’s availability while addressing security concerns. On Truth Social, he stated, “My decision on TikTok will be made in the not too distant future, but I must have time to review the situation. Stay tuned!”
Despite his remarks, legal experts warn that maintaining TikTok’s operations would still be a high-risk decision for U.S. companies.
Wayne Unger, a law professor at Quinnipiac University, explained, “Companies like Apple and Google must decide whether to risk violating the law, even with Trump’s assurances. His promises only provide limited protection.”
Apple, Google, and Oracle have not commented on their plans regarding the ban. TikTok’s CEO, Shou Zi Chew, expressed hope for a resolution, thanking Trump for his commitment to keeping the app available in the U.S.
After publication, TikTok stated it might “go dark” on January 19 unless the Biden administration guarantees service providers won’t face enforcement action.
How the Ban Works
The ban targets U.S.-based companies providing services to TikTok, including app hosting and updates. Companies such as Apple, Google, and Oracle risk $5,000 fines per user if they continue supporting the app.
For example, Apple and Google could face fines for each app download or update, while Oracle might be fined for enabling user access via its hosting services. Alan Rozenshtein, a University of Minnesota law professor, said fines could escalate quickly for companies like Oracle.
“TikTok’s shutdown would occur through third parties being forced to stop supporting the app,” Unger explained.
The law allows the U.S. attorney general to impose fines retroactively for up to five years. A president can extend the divestiture deadline by 90 days, but only if TikTok demonstrates progress toward selling its U.S. assets and formal agreements exist.
Rozenshtein noted, “Without concrete action, the 90-day extension is moot.”
Trump’s Limited Options and Legal Challenges
Reports suggest Trump might issue an executive order to delay the ban, allowing time for negotiations. However, Rozenshtein clarified that an executive order cannot override the law passed by Congress and signed by President Biden.
“A presidential declaration or tweet lacks the legal authority to halt the law,” Rozenshtein said. Executive orders, he added, are akin to “press releases with nicer stationary.”
Trump’s assurances might offer companies some legal leverage if fines are imposed later. However, Rozenshtein cautioned, “The argument’s success in court remains uncertain. For companies like Apple, this doesn’t provide sufficient comfort.”
The Justice Department may choose not to enforce the law immediately. Biden’s deputy attorney general, Lisa Monaco, stated that compliance enforcement “will be a process that plays out over time.” However, the five-year enforcement window makes this a temporary reprieve.
Justin Hurwitz, a senior fellow at the University of Pennsylvania law school, believes tech companies are unlikely to gamble on non-compliance. “The penalties are too severe, and Trump has limited power to prevent the law’s implementation,” he said.
Could TikTok Return if Banned?
Even if TikTok shuts down, it could quickly resume operations after a qualified sale of its U.S. assets. Solicitor General Elizabeth Prelogar noted earlier this month that Congress anticipated ByteDance might resist divestiture until the ban forced its hand.
Prelogar explained, “When these restrictions take effect, it could change ByteDance’s stance, creating the urgency Congress intended to advance the divestiture process.”