Providers hosting TikTok could still face penalties despite extension,
experts warn

Date:
Mon, 20 Jan 2025 12:23:00 +0000

Description:
President Trump has promised to extend TikTok's lifeline by 90 days, with services being restored across the US.

FULL STORY ======================================================================
- President Trump has extended TikTok's service in the US by 90 days
- *The extension may not be legally enforceable*
- Trump promised to not enforce fines against companies hosting the app

TikTok has restored its service in the US after being offline for less than
24 hours following its ban for failing to sell or divest from owner
Bytedance, which the US alleged had connections to the Chinese government.

However, Presdient Trumps restoration of service (which was acknowledged in-app) may not be legally binding, and could put web hosting services at
risk of lawsuits and huge fines.

Any company that hosts, distributes, services, or otherwise facilitates communist-controlled TikTok could face hundreds of billions of dollars of ruinous liability under the law, Senator Tom Cotton warned on X (formerly Twitter), not just from DOJ, but also under securities law, shareholder lawsuits, and state AGs.

Think about it -- Trust Trump or the law

Despite not being in power at the time the ban was declared, President Donald Trump reassured providers that the 90 day extension would be put into place, and that fines would not be enforced so that Americans could see his inauguration. However, the issue remains that Congress issued a legal ruling that TikTok must divest or be sold to a US company to keep operating in the
US, or face the ban.

As a result, providers hosting the TikTok app, such as Apples App Store and Googles Play Store, could face fines of up to $850 billion, or $5,000 per
user who accesses the app via their services.

As The Verge points out, companies which violate the law and restore service would be able to challenge the fines and lawsuits in court by pointing to Trumps promise to not enforce Congress' ruling against providers.

Also, Trump himself could be challenged in court by TikToks competition such
as Meta or X, by users who dont want their data being handed over to the CCP, or by a provider looking to clarify where they stand legally by hosting the app.

However, given major tech CEOs including Zuckerberg, Musk, and Cook have all donated seven-figure sums to the Trump inauguration fund, it's unlikely Trump will face any objections from those looking to curry his favor.

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Link to news story: https://www.techradar.com/pro/providers-hosting-tiktok-could-still-face-penalt ies-despite-extension-experts-warn

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