TikTok's Service Providers Still Risk Billions in Penalties for Bringing it Back Online

Despite celebratory messages from TikTok, the recent developments surrounding the app's ban leave many questions unanswered. The incoming president has indicated he intends to extend the deadline for TikTok's divestment, assuring companies they will not face penalties for allowing the app to remain operational. However, the legality and enforceability of such an extension remain highly uncertain.


The Ban: A Complex Legal Landscape

Congress passed legislation mandating TikTok's divestment from its parent company, ByteDance, or face an outright ban. This law included a provision allowing for a 90-day extension of the deadline under specific conditions. The outgoing president declined to utilize this extension.

The current situation presents several critical questions:

  • Can the incoming president unilaterally override the existing law? The answer is likely no. Simply declaring an extension does not negate the legal framework established by Congress.
  • What recourse do service providers have? Companies like Apple, Google, and those providing services to TikTok face potential penalties of up to $850 billion. These penalties stem from the risk of facilitating access to an app deemed a national security threat by the US government.
  • What steps can the incoming president take to ensure compliance and avoid penalties for service providers? One potential avenue could involve certifying to Congress that a deal has been reached for TikTok's sale and attempting to trigger the 90-day extension provision that was previously unused.

A High-Stakes Game

The situation highlights the complex interplay between political pronouncements and legal realities. Service providers are now caught in a difficult position. Complying with the existing ban could alienate a significant portion of their user base and potentially damage their reputation. Conversely, defying the law carries the enormous risk of substantial financial penalties.

The Unresolved Questions

As of this writing, TikTok's long-term fate remains uncertain. The app's future hinges on the incoming president's ability to navigate the legal and political landscape while addressing the national security concerns that led to the ban in the first place.

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