A court’s decision upholding the divest-or-ban TikTok law may deprive many of America’s largest cloud providers of millions of dollars in contracts with the social media company and its Chinese parent, ByteDance.
The divest-or-ban law prevents companies from providing TikTok or ByteDance with “internet hosting services to enable the distribution, maintenance, or updating” of their apps. Companies that run afoul of this provision could be assessed astronomical fines.The fines would be equivalent to the number of TikTok users who continued to use TikTok after the divestiture deadline — currently January 19 — times 5,000: a number that could quickly reach into tens or hundreds of billions.
“The statute says we can’t provide cloud services after the 19th,” Glueck noted. “Whatever the law is, we’ll comply with it. It is what it is, we all move on.” Glueck mentioned that the legislature might change the law, that President Biden might offer TikTok an extension, or that the courts might issue a stay to prevent the law from going into effect while TikTok makes its appeals. “But we’re just a vendor, we’ll comply with the statute,” he reiterated.could be impacted by the law.
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