TikTok Prohibition Hits Apple and Google Hard
A TikTok ban on Sunday could have significant repercussions for major tech companies such as Google, Apple, and Oracle, which would face substantial fines if they continue to allow the app to operate.
TroibNews 
Apple, Google, and Oracle—three of the largest tech companies globally—are navigating a complex situation following the U.S. Supreme Court's decision to uphold a law that compels TikTok to be sold by its parent company, Beijing-based ByteDance, or face a ban in the U.S.
With the law's deadline approaching this Sunday, unless there’s a last-minute sale or unforeseen action from the Biden administration, the law does not outright “ban” TikTok or deactivate its services. Instead, it imposes penalties on any companies involved in distributing, maintaining, or updating the app.
This means Apple and Google will need to remove TikTok from their app stores to avoid significant fines. Oracle, which offers cloud services and was previously part of efforts to alleviate concerns in Washington about Chinese Communist Party control over TikTok, would also incur penalties if it continued operating with the app.
Jeffrey Fisher, a lawyer who represented a group of creators at the Supreme Court, highlighted the challenges facing affluent companies, urging President Joe Biden on Friday to assure they would not face repercussions. “It would cause substantial and avoidable disruption to the third-party providers that may be subject to severe penalties if they continue to provide TikTok to its millions of users,” he stated in a letter shared with PMG. “There is no compelling need to risk that result.”
The Biden administration has indicated it will not enforce the law on his last day in office, while Donald Trump—who will take office on Monday—has committed to finding a political solution that may prevent enforcement.
While deliberating on Saturday, President-elect Donald Trump indicated that he would "most likely" grant TikTok a three-month extension from a U.S. ban, potentially as soon as his first day in office. “I think that would be, certainly, an option that we look at. The 90-day extension is something that will be most likely done, because it’s appropriate,” he told NBC News’ Kristen Welker in a phone interview. “If I decide to do that, I’ll probably announce it on Monday.”
However, it is unclear if these assurances will be sufficient for companies to risk major financial liabilities by keeping the app operational. The law allows the president a one-time extension, but it requires certification to Congress of "significant progress" toward divestiture, backed by "relevant binding legal agreements"—conditions that seem unmet, as ByteDance has resisted a sale.
With a daily fine of $5,000 for every user who remains able to access TikTok, the financial consequences could reach staggering amounts.
Apple, Google, and Oracle have not publicly commented on whether they will adhere to or defy the law on January 19. All three companies did not respond to inquiries from PMG about their intentions.
The Supreme Court recently debated whether these companies would have protection if the president promised not to enforce the law, only to later backtrack. “It's purely a business decision, not a legal decision,” said University of Pennsylvania law professor Gus Hurwitz, clarifying that Trump's message would likely be to keep the app available and operational: “Don’t worry, I'm not going to mess with you.”
Nonetheless, there’s a political element. Hurwitz cautioned that many companies may find it difficult to trust an administration with which they have had a contentious relationship, even while attempting to align themselves with it.
The ambiguity surrounding the legal situation drove TikTok to seek explicit guarantees from Biden on Friday for the companies involved in its continuity. TikTok stated that the Biden administration and the Justice Department have “failed to provide the necessary clarity and assurance to the service providers that are integral to maintaining TikTok’s availability to over 170 million Americans,” prompting the company to signal it might “go dark” on January 19.
White House press secretary Karine Jean-Pierre dismissed TikTok's actions as a "stunt." She stated Saturday that the administration sees "no reason for TikTok or other companies to take actions in the next few days before the Trump Administration takes office on Monday."
The critical choice of whether to continue serving TikTok amid a ban hinges on companies’ willingness to accept risk, with indications that Oracle may be more inclined to trust the Trump administration.
Oracle manages cloud infrastructure for TikTok and has often been regarded as a favored tech company by Trump. Its executives supported his reelection campaign and reportedly assisted the Heritage Foundation in identifying loyal party members to help implement the Project 2025 agenda.
In 2020, Oracle secured a billion-dollar contract to host all U.S. user data for the app under the initiative known as “Project Texas.” This collaboration came about as TikTok sought to address U.S. national security apprehensions, only to discover it was insufficient when lawmakers enacted the new law.
Congressional members are closely monitoring the app stores. Sen. Mike Rounds asserted Thursday that TikTok should receive “no more time.” Leaders from the House Select Committee on China have urged Google CEO Sundar Pichai and Apple CEO Tim Cook to “take the necessary steps” to ensure compliance with the law by January 19.
Following the ruling on Friday, Sen. Rick Scott remarked that U.S. app store providers like Google and Apple “need to comply with the law” and its stipulation to revoke TikTok’s access immediately.
Scott also pressed for clarity from Trump’s attorney general nominee, Pam Bondi, who hesitated to commit to enforcing the ban during her confirmation hearing. He remarked, “I expect the laws to be enforced.”
James del Carmen for TROIB News
With the law's deadline approaching this Sunday, unless there’s a last-minute sale or unforeseen action from the Biden administration, the law does not outright “ban” TikTok or deactivate its services. Instead, it imposes penalties on any companies involved in distributing, maintaining, or updating the app.
This means Apple and Google will need to remove TikTok from their app stores to avoid significant fines. Oracle, which offers cloud services and was previously part of efforts to alleviate concerns in Washington about Chinese Communist Party control over TikTok, would also incur penalties if it continued operating with the app.
Jeffrey Fisher, a lawyer who represented a group of creators at the Supreme Court, highlighted the challenges facing affluent companies, urging President Joe Biden on Friday to assure they would not face repercussions. “It would cause substantial and avoidable disruption to the third-party providers that may be subject to severe penalties if they continue to provide TikTok to its millions of users,” he stated in a letter shared with PMG. “There is no compelling need to risk that result.”
The Biden administration has indicated it will not enforce the law on his last day in office, while Donald Trump—who will take office on Monday—has committed to finding a political solution that may prevent enforcement.
While deliberating on Saturday, President-elect Donald Trump indicated that he would "most likely" grant TikTok a three-month extension from a U.S. ban, potentially as soon as his first day in office. “I think that would be, certainly, an option that we look at. The 90-day extension is something that will be most likely done, because it’s appropriate,” he told NBC News’ Kristen Welker in a phone interview. “If I decide to do that, I’ll probably announce it on Monday.”
However, it is unclear if these assurances will be sufficient for companies to risk major financial liabilities by keeping the app operational. The law allows the president a one-time extension, but it requires certification to Congress of "significant progress" toward divestiture, backed by "relevant binding legal agreements"—conditions that seem unmet, as ByteDance has resisted a sale.
With a daily fine of $5,000 for every user who remains able to access TikTok, the financial consequences could reach staggering amounts.
Apple, Google, and Oracle have not publicly commented on whether they will adhere to or defy the law on January 19. All three companies did not respond to inquiries from PMG about their intentions.
The Supreme Court recently debated whether these companies would have protection if the president promised not to enforce the law, only to later backtrack. “It's purely a business decision, not a legal decision,” said University of Pennsylvania law professor Gus Hurwitz, clarifying that Trump's message would likely be to keep the app available and operational: “Don’t worry, I'm not going to mess with you.”
Nonetheless, there’s a political element. Hurwitz cautioned that many companies may find it difficult to trust an administration with which they have had a contentious relationship, even while attempting to align themselves with it.
The ambiguity surrounding the legal situation drove TikTok to seek explicit guarantees from Biden on Friday for the companies involved in its continuity. TikTok stated that the Biden administration and the Justice Department have “failed to provide the necessary clarity and assurance to the service providers that are integral to maintaining TikTok’s availability to over 170 million Americans,” prompting the company to signal it might “go dark” on January 19.
White House press secretary Karine Jean-Pierre dismissed TikTok's actions as a "stunt." She stated Saturday that the administration sees "no reason for TikTok or other companies to take actions in the next few days before the Trump Administration takes office on Monday."
The critical choice of whether to continue serving TikTok amid a ban hinges on companies’ willingness to accept risk, with indications that Oracle may be more inclined to trust the Trump administration.
Oracle manages cloud infrastructure for TikTok and has often been regarded as a favored tech company by Trump. Its executives supported his reelection campaign and reportedly assisted the Heritage Foundation in identifying loyal party members to help implement the Project 2025 agenda.
In 2020, Oracle secured a billion-dollar contract to host all U.S. user data for the app under the initiative known as “Project Texas.” This collaboration came about as TikTok sought to address U.S. national security apprehensions, only to discover it was insufficient when lawmakers enacted the new law.
Congressional members are closely monitoring the app stores. Sen. Mike Rounds asserted Thursday that TikTok should receive “no more time.” Leaders from the House Select Committee on China have urged Google CEO Sundar Pichai and Apple CEO Tim Cook to “take the necessary steps” to ensure compliance with the law by January 19.
Following the ruling on Friday, Sen. Rick Scott remarked that U.S. app store providers like Google and Apple “need to comply with the law” and its stipulation to revoke TikTok’s access immediately.
Scott also pressed for clarity from Trump’s attorney general nominee, Pam Bondi, who hesitated to commit to enforcing the ban during her confirmation hearing. He remarked, “I expect the laws to be enforced.”
James del Carmen for TROIB News
