Why Apple and Others Are Hesitant to Embrace TikTok: The $850 Billion Factors at Play

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Why Apple and Others Are Hesitant to Embrace TikTok: The 0 Billion Factors at Play

This past weekend was a tumultuous one for TikTok. While some reports suggest that the app is back, the situation is far from settled.

The application was taken down from the App Store by Apple and the app stores operated by Google, Amazon, and Microsoft. None of these companies have reinstated it yet.

Weekend Event Timeline

On Friday, the US Supreme Court upheld legislation that bans TikTok in the United States, which means the ban will come into effect on January 19.

The Biden administration commented that it had no intention of enforcing the law during its final 24 hours in office, leaving it up to Trump to address the issue.

Trump suggested he needed time to evaluate the situation, and TikTok became unavailable in the US on Sunday. Users attempting to access the app encountered a message indicating that Trump would address the matter upon taking office.

Sorry, TikTok isn’t accessible right now. A law prohibiting TikTok has been enacted in the U.S. Thus, access to TikTok is currently prohibited. We are hopeful that President Trump will collaborate with us to find a solution for reinstating TikTok as soon as he assumes office. Please stay tuned!

Apple released a statement affirming its obligation to comply with the law by removing the app from its store.

Later on Sunday, Trump took to social media, announcing that he would suspend the ban immediately following his inauguration the next day and that companies would not face penalties for disregarding the law in the interim.

I’m requesting that companies ensure TikTok does not become unavailable! On Monday, I will issue an executive order to prolong the enforcement of the law’s prohibitions, allowing us time to reach an agreement to safeguard our national security. The order will also confirm that there will be no repercussions for any company that assists in keeping TikTok operational before my order is issued. Americans deserve access to our exciting Inauguration on Monday, along with other events and discussions.

Access to the app was restored by Bytedance, as Oracle, a US-hosting company, seemingly decided to trust Trump’s assurance regarding liability.

Working in agreement with our service providers, TikTok is currently in the process of restoring service. We appreciate President Trump for offering the necessary clarity and assurance to our service providers that they will not incur penalties for providing TikTok to over 170 million Americans.

Apple and Google Playing It Safe

Despite this, neither Apple nor Google has reinstated the app in their stores. The reasoning was succinctly stated by two senators: Trump has yet to formally take office, and the ban is still active.

We commend Amazon, Apple, Google, and Microsoft for adhering to the law and ceasing operations with ByteDance and TikTok, and we urge other businesses to follow suit. The law carries the risk of catastrophic bankruptcy for any entity that contravenes it.

When they refer to ‘catastrophic,’ they are very serious. The law allows fines of $5,000 per user, potentially amounting to $850 billion. Even for a giant like Apple, this would be an immense setback.

Several legal experts cited in Daring Fireball have pointed out that it’s uncertain whether Trump has the authority to protect companies from legal repercussions.

These “service providers” [i.e., Oracle and its content delivery network partner] have lost their minds. There’s no guarantee that Trump, who isn’t even the sitting president yet, can offer any protection. I anticipate shareholder lawsuits — Oracle is racking up tens, if not hundreds, of billions in potential liability.

DMN’s Perspective

Apple made a prudent choice.

Whether Trump possesses the legal authority to grant immunity for actions taken during a time when he was not yet in office is questionable; likewise, the trustworthiness of his word is also debatable. None of the app store operators are willing to take that risk, and rightly so.

Apple is unlikely to alienate its users. The forthcoming ban was anticipated, so anyone interested in the app has likely already downloaded it to their devices.

Perhaps Apple risks displeasing Trump, but CEO Tim Cook’s financial contributions and presence at the inauguration should mitigate that concern. The iPhone manufacturer can certainly afford to observe how events unfold in the coming days.

Image: DMN

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