no matter what tiktok Says in your appreciative pop-up messagesPresident-elect Donald Trump cannot simply announce an extension of the TikTok ban and protect US companies supporting it from billions of dollars in fines.
trump Looks like TikTok wants to be available for their inauguration on Monday, because “Americans deserve to see this program”. But TikTok is officially banned starting today unless it is sold to a non-Chinese company, and there is no deal in sight. Apple and Google's app stores, as well as service providers Akamai and Oracle, could potentially be fined $850 billion for violating that ban. Despite all this, Trump has reportedly assured companies that they will not face these fines if they allow TikTok to continue operating. Now, the question is simple: will Trump-friendly companies Risk breaking the law to please the President?
The status of TikTok is uncertain since last night. President Joe Biden said he would not enforce the law on the last day of his presidency, but TikTok announced it would go dark anyway. App stores removed it as per law. Then, Trump promised he would extend the deadline, telling companies they wouldn't face penalties — and TikTok immediately came back online with a thank you note to the president-elect. The problem is that it's not clear that Trump can do what he's promised.
Congress passed a law directly Demand to separate TikTok from itself Or face sanctions from parent company ByteDance. This included the option for President Joe Biden to extend the deadline by 90 days if a deal is announced; Biden refused to use it. Now TikTok has only a few options to continue operating legally. The app can be sold and brought back under different ownership. Congress could pass a new law extending the deadline or ending the ban. Or Trump could try to extend it by certifying an agreement to change TikTok's ownership — but unfortunately for him, he can't simply sign an order saying that a law no longer exists.
This puts companies in legal binds. TikTok's US service providers risk a fine of $5,000 per person who uses their service to access the app. The government told the Supreme Court that it could be implemented up to five years later, so they could be punished under a future president (or Trump himself).
Trump needs to act in a way that gives them confidence that this won't happen. Perhaps their best option would be to certify to Congress that TikTok has agreed to the sale, then try to trigger the 90-day extension that Biden did not use. (It's debatable whether this could be done once the ban goes into effect, but legal experts say it's at least possible to argue for it.) Allen, a professor at the University of Minnesota Law School, says, “Clearly Apparently, he might have been lying about the deal”. Rosenstein. “He might be lying to the Congress, and that will be the problem for the Congress. But they may still have certified, and so unless a court declares that that certification is invalid, I think the companies will be safe.
“This shows that one post on Truth Social is enough for some companies to willingly violate federal law.”
However, for now, Trump's assurances that it is safe to support TikTok are legally tenuous. TikTok began coming back online in the US at midday on Sunday, showing that its service provider Oracle can be trusted Trump's assurance on Truth Social That it will delay the ban, although the company has not confirmed or commented on this. “This shows that one post on Truth Social is enough for some companies to willingly violate federal law,” says Bloomberg Intelligence litigation analyst Matt Shattenhelm. “I think it's a wonderful development if that's what's happening.”
If companies Are Schettenhelm says that if he broke the law, he would likely have a strong due process defense, given Trump's promise not to enforce it. But “anytime you're voluntarily violating federal law, you're forcing yourself to fight the issue,” he says. “Yes, it's probably a winnable fight, but when it's a fight with over $850 billion at stake, it's probably better not to get into that fight.”
Rosenshtein says the move could invite shareholder lawsuits — something like Senate Intelligence Committee Chairman Tom Cotton (R-AR) warnedEven though Trump encouraged service providers to bring TikTok back online at the time of his inauguration.
“It's probably a winnable fight, but when it's a fight with more than $850 billion at risk, it's probably better not to get into that fight.”
said that, Trump's power This may encourage some companies to take calculated risks. “It's certainly in the interest of these companies to take the side of the new administration, and I think it's conceivable that they would incur an $850 billion liability and even willingly violate the new federal law,” says Shattenhelm. “Also may be beneficial for some companies.” “But you wouldn't normally think that this is a calculation that makes any sense.”
If Trump tries to overrule Congress in a way that is illegal, someone suing could challenge him in court. who could it be? One alternative are TikTok users who supported the ban and fear that the Chinese government will confiscate their data. “Sure, the courts could say, 'Okay, then don't use TikTok,'” Rosenshtein explains. He says a competitor like Meta may also be able to stake a claim. Or a service provider like Apple or Google could try to get the court to clarify its legal liability without actually challenging the arrangement. But given tech companies' efforts to avoid angering Trump, that path seems unlikely.
If TikTok's service providers really want legal protection, what's missing is real worthy divestment – which will take time to overcome. Even if China agrees to sell the app – Their best option is Congress. It still seems like a far-reaching endeavor, especially on short notice. But now that Senate Minority Leader Chuck Schumer (D-NY) has endorsed an extension, Shattenhelm says, “it's conceivable that perhaps Congress will agree to at least delay the ban or roll it back.” “This would be the most legally correct way to do this.”