Apple and Google instructed by House committee to prepare to dump TikTok next month

Jonathan Vanian
CNBC
Top executives of Apple and Google have been told to prepare to dump TikTok.
Top executives of Apple and Google have been told to prepare to dump TikTok. Credit: AAP

House Committee members are urging the top executives of Apple and Google to be prepared to comply with a law that could result in TikTok facing an effective ban in the US next month

Letters were sent on Friday to Apple chief executive Tim Cook and Alphabet chief executive Sundar Pichai from Representative John Moolenaar, R-Mich., and Raja Krishnamoorthi, D-Ill., of the House Select Committee on the Chinese Communist Party, reminding them of their responsibilities as app store operators.

The lawmakers were referring to last week’s decision by the US Court of Appeals in Washington, DC, to uphold a law that requires China’s ByteDance to divest TikTok by January 19.

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If ByteDance fails to sell TikTok by that date, Apple and Google will be required by law to ensure that their platforms no longer support the TikTok app in the US, the lawmakers wrote.

“As you know, without a qualified divestiture, the Act makes it unlawful to provide services to distribute, maintain, or update such foreign adversary controlled application (including any source code of such application) by means of a marketplace (including an online mobile application store) through which users within the land or maritime borders of the United States may access, maintain, or update such application,’” the lawmakers wrote in the letters.

They also sent a letter to TikTok chief executive Shou Zi Chew, reviewing the court decision. They said that since President Joe Biden passed the original TikTok law in April, “Congress has provided ample time for TikTok to take the necessary steps to come into compliance.”

“Indeed, TikTok has had 233 days and counting to pursue a solution that protects US national security,” the lawmakers wrote.

Although TikTok called the law unconstitutional and said it violates the First Amendment rights of its 170 million users, a three-judge panel on the appeals court rejected that argument and said in an opinion that the law “is narrowly tailored to protect national security.”

TikTok has since filed an emergency motion for an injunction to stop the ban from taking effect until the U.S. Supreme court can hear its appeal. The company warned that one month of a U.S. ban would result in U.S. small businesses and social media creators losing $1.3 billion in sales and earnings.

President-elect Donald Trump has not publicly stated whether he plans to enforce the effective TikTok ban when he officially takes office on January 20.

Mr Trump tried to push through a ban in his first administration, but his rhetoric on TikTok began to turn after the president-elect met in February with billionaire Jeff Yass, a Republican mega-donor and a major investor in the Chinese-owned social media app.

Mr Yass’ trading firm Susquehanna International Group owns a 15 per cent stake in ByteDance, while Mr Yass maintains a 7 per cent stake in the company, equating to about $21 billion, NBC and CNBC reported in March.

That month it was also reported that Mr Yass was a part owner of the business that merged with the parent company of Mr Trump’s Truth Social.

Google declined CNBC’s request for comment.

Apple and TikTok did not immediately respond to CNBC’s requests for comment.

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