Amazon Web Services, as the world’s largest cloud computing company, has been providing technical support to deliver TikTok videos to millions of Americans for over six years. However, a new law banning TikTok in the United States presented a dilemma for tech companies, as they risked financial penalties for distributing and updating the app.
Before the ban took effect, Amazon appeared to comply with the law, shifting technical support to Akamai Technologies. Other tech giants like Apple and Google swiftly removed TikTok from their app stores, while Oracle continued to process TikTok user data and Akamai and Fastly supported video processing.
The different responses highlight the challenges faced by major American tech companies in navigating the TikTok ban, balancing compliance with the law against potential penalties and political factors. Legal experts suggested that Mr. Trump’s executive order may not shield companies from monetary penalties or lawsuits.
Apple and Google’s decisions were driven by their financial interests and adherence to global laws, while Oracle’s close relationship with TikTok and Mr. Trump influenced its choice to continue supporting the app. Amazon played a smaller role in hosting TikTok data, but companies like Oracle and Akamai faced potential losses in sales and profits by ceasing support.
The complex situation underscores the legal and financial risks tech companies face in violating federal law, with potential consequences ranging from financial penalties to shareholder lawsuits. As lawmakers emphasize the need to follow the law, companies like Oracle continue to navigate the challenging landscape surrounding TikTok’s future in the United States.
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