Apple and Google could be liable for $850 billion due to the TikTok ban

Apple and Google are facing potential liabilities amounting to $850 billion due to the ongoing uncertainties surrounding the TikTok ban in the United States. This development arises as the April 5 deadline for TikTok’s divestment approaches without resolution.

In January, TikTok experienced a brief shutdown in the U.S., which was widely regarded by experts as a deliberate public relations stunt to provoke public outrage and legislative pushback. Legal and policy experts, including Joel Thayer from the Digital Progress Institute, argued that the shutdown was engineered to create a sense of panic among users and policymakers.

The Protecting Americans from Foreign Adversary Controlled Applications Act imposes civil penalties of $5,000 per user upon companies aiding TikTok unless significant progress is made towards a sale of its U.S. business. This places major tech companies like Apple and Google at risk of substantial fines.

Three U.S. senators—Edward J. Markey (D-MA), Chris Van Hollen (D-PA), and Cory Booker (D-NJ)—have urged President Trump to collaborate with Congress to prevent TikTok from going dark in the U.S. after the April 5 deadline. They oppose the TikTok ban and warn that the current approach could leave service providers like Oracle, Apple, and Google vulnerable to massive legal liabilities.

The Department of Justice has assured these companies that the Act would not be enforced immediately, but the duration of this assurance remains uncertain. The senators emphasized their preference for TikTok to undergo divestment, allowing continued access for its 170 million U.S. users and 7 million creators. With the 75-day extension ending on April 5, time is running short for a resolution.

As the deadline nears, multiple rumors have circulated about U.S. companies potentially purchasing TikTok’s American operations. However, ByteDance has indicated that splitting the algorithm would be extremely challenging and could take years. The situation remains fluid, and the tech industry is closely monitoring developments to understand the potential implications for major platforms and their users.