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

TikTok on a phone in front of the USA flag

(Image credit: CFOTO/Future Publishing via Getty Images)

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 Trump’s 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 Apple’s App Store and Google’s 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 Trump’s promise to not enforce Congress' ruling against providers.

Also, Trump himself could be challenged in court by TikTok’s competition such as Meta or X, by users who don’t 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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Benedict has been writing about security issues for over 7 years, first focusing on geopolitics and international relations while at the University of Buckingham. During this time he studied BA Politics with Journalism, for which he received a second-class honours (upper division), then continuing his studies at a postgraduate level, achieving a distinction in MA Security, Intelligence and Diplomacy. Upon joining TechRadar Pro as a Staff Writer, Benedict transitioned his focus towards cybersecurity, exploring state-sponsored threat actors, malware, social engineering, and national security. Benedict is also an expert on B2B security products, including firewalls, antivirus, endpoint security, and password management.