"They would be sued" — Shark Tank star Kevin O’Leary reveals Congress would block any attempt to buy TikTok

In an Instagram reel shared on April 11, 2025, Shark Tank star Kevin O’Leary talked about the legal issues around buying TikTok during an interview on The Don Lemon Show. He explained that Senator Tom Cotton had told him that Congress would not allow any company to buy TikTok and keep its algorithm.

O’Leary said the senator made it clear that no one — including him — would be protected by Congress if they tried to make such a deal. He added that the law, which was approved by the Supreme Court, says companies cannot use TikTok’s algorithm because it was created in China.

According to O’Leary, trying to buy TikTok with the algorithm could lead to very large fines:

“They would be sued 80 or $800 billion a year as per the penalties provided in the law,” he wrote in his caption.

He ended by saying that now it’s clear to everyone that if someone wants to buy TikTok, it won’t come with the algorithm, and Congress won’t offer any legal protection.

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Shark Tank star Kevin O’Leary shares the legal barriers to purchasing TikTok

In his talk with Don Lemon, Shark Tank star Kevin O’Leary explained how the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA) stops companies from using TikTok’s algorithm. He said that while there have been ideas to protect buyers from legal trouble, lawmakers like Senator Cotton disagree.

Talking about Cotton’s message to possible U.S. buyers, including himself:

"He went online and basically said, "Listen we wrote this law, and then the Supreme Court ratified it nine to zero, and it says you cannot use the Chinese algorithm," and he's speaking specifically to people like me that want to buy TikTok," O'Leary shared.

He also said that the Supreme Court fully supported this rule with a unanimous decision, which means even if someone went to court, they wouldn’t win. Because of this, many buyers have lost interest. Shark Tank star O’Leary pointed out that Congress would not provide people "any indemnification,” which means companies could face very large lawsuits.

The main reason behind this is national security and the U.S. government’s goal to block Chinese-made technology from being used in important systems. Even though O’Leary and other buyers still want TikTok, not being able to use its algorithm makes the deal worth much less. He hinted that unless the law changes, “you won’t be buying it with the algorithm.”

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Why Kevin O’Leary can’t move forward with a TikTok deal?

In a January 2025 interview with CNBC, Shark Tank mentor Kevin O’Leary spoke about his interest in buying TikTok through a 50/50 ownership plan suggested by Donald Trump. He said that his team, along with Project Liberty founder Frank McCourt, had offered $20 billion in cash to buy the platform, without including its algorithm.,

“That 50/50 deal, I would love to work with Trump on, so would every other potential buyer. But the problem with some of these ideas is they are inconsistent with the ruling of the Supreme Court," O'Leary explained.

O’Leary mentioned that even though Trump gave TikTok 75 extra days to find new options, that’s not enough unless Congress changes the law. He said the real need is for Congress to look at the current rule again and create new ways to make a legal deal.

Shark Tank mentor also pointed out that even if Trump’s orders give short-term help, “they’re certainly gambling with the law” unless Congress officially allows it. At the same time, Project Liberty said it is ready to work with all involved and offer a tech fix that deals with national security worries. Still, even with new interest and possible support from China, any deal must follow the Supreme Court’s decision.

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