TikTok is one of the five biggest social media platforms, only behind Facebook, YouTube, Instagram, and WhatsApp. Launched in its present form in 2018, as of February 2024, it had been downloaded around 4.7 billion times.
After YouTube’s success, who would’ve thought that another video streaming platform had any chance at similar success? I guess only entrepreneurs who think outside the box.
💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter💰💵
TikTok managed to build its own path by offering features other social media platforms lacked.
For example, TikTok’s for your page (FYP) feature allows users to access a never-ending stream of the most popular short clips, even on new accounts that don't follow anyone, giving it an advantage against competitors.
Related: TikTok’s next move has Google and Meta sweating bullets
You know how Twitter or Facebook accounts with no friends feel lonely? That is not happening on TikTok. Its algorithm is praised for its uniqueness, which entices users to spend hours on the app.
FYP is not the only feature that sets TikTok apart from other social media platforms. Its special appeal is also built on short-form video content, a user-friendly interface and an emphasis on making engagement with videos feel more personal and impactful.
However, with popularity comes the question of responsibility. Over the last couple of years, TikTok has been under scrutiny over national security concerns.
Image source: CFOTO/Future Publishing via Getty Images
Unsuccessful attempts to ban TikTok in the U.S.
In 2020, the first Trump Administration tried but failed to use its emergency power to block TikTok in the country.
The government was and is still worried, because the Chinese company ByteDance owns TikTok, leaving user data vulnerable. The main concern is that the Chinese government might access that user data or manipulate the platform for its own purposes.
Three years later, the Biden Administration banned TikTok on devices used by federal employees, and in 2024, both the U.S. House of Representatives and Senate passed legislation requiring ByteDance to sell TikTok or be banned in U.S. app stores and websites. The bill was signed into law by then-President Biden.
Related: Facebook makes bold effort to take down TikTok
The same year, TikTok filed suit, calling the law unconstitutional, but a federal appeals court unanimously upheld the TikTok ban regulation, writes TechTarget.
On January 19, 2025, TikTok stopped working for 170 million Americans after the U.S. Supreme Court ruled against TikTok’s bid to avoid a ban. The app was also removed from app stores.
Then on January 20, the app returned after President Trump signed an executive order delaying enforcement of the ban for an extra 75 days, or until April 4.
Trump extended the deadline two more times, with the latest extension announced in June and set for September 17, 2025.
T-Mobile, Apple, Amazon, Google facing potential penalties over TikTok
The initial law signed by President Biden noted that any company continuing to support TikTok's operation in the U.S. faced up to $850 billion in liability, writes PhoneArena.
The day after the first expansion of President Trump’s executive order, the administration sent letters to tech companies including Apple, informing them that they will not face penalties if keeping TikTok online.
Related: Amazon shuts down another key business location
Considering that the executive order did not make TikTok legal again, Tony Tan, an Alphabet (GOOGL) stockholder, is raising serious concerns.
Tan asks: What if a future court ruled that President Trump didn’t have the power to use an executive order to reverse a law passed by the Senate, the House, and signed by the sitting president?
Earlier this year, Senator Edward Markey, Senator Cory Booker, and Senator Chris Van Hollen raised the same concern in a letter written to the president.
Senators wrote that such non-enforcement of the TikTok Ban “was not only unlawful but also raised serious questions about TikTok’s future, as the law imposes liability — up to $850 billion — on companies for facilitating TikTok’s continued operations in the United States.”
More Tech Stocks:
- Amazon tries to make AI great again (or maybe for the first time)
- Veteran portfolio manager raises eyebrows with latest Meta Platforms move
- Google plans major AI shift after Meta’s surprising $14 billion move
Tan sued Alphabet to find out why it returned TikTok to the Play Store considering the risk of $850 billion in liabilities, arguing that Alphabet’s decision could affect its shareholders.
The lawsuit argues Google shouldn’t rely on President Trump’s executive order and Attorney Generals’ letter alone to protect them from legal risks, and that the tech giant could be liable by a future president, or even Trump, who could change his mind, writes Wired.
“There is a federal law that says the TikTok app should not be on your store, and I can see TikTok is on the app store,” Tan says of Google, according to the outlet. “Congress passed the law, and the Supreme Court upheld it. It’s not debatable.”
Other tech firms that might face similar risks include Apple, Amazon, Microsoft, T-Mobile, and Oracle.
Related: Amazon's easy return policy has hidden costs for shoppers
