Indonesia Bans TikTok from Allowing E-Commerce, Giving It 1 Week to Comply or Face Closure

Indonesia has banned TikTok from allowing e-commerce transactions, giving it 1 week to comply or face closure. This impacts TikTok's growth plans for Southeast Asia.
Transactions were banned on social media platforms like TikTok Shop and Facebook. Users cannot buy or sell goods through these apps anymore.
As TikTok's largest Southeast Asian market, the ban significantly impacts its ambitions in the region. TikTok Shop accounted for 5% of Indonesia's e-commerce.
TikTok may struggle operating a standalone app without e-commerce, as impulse purchases from content viewing is a key advantage. Moving users to a separate app could lead to high drop-off.
The ban mainly impacts TikTok Shop, whose model relies on social commerce. Competitors like Shopee and Lazada remain largely unaffected.

cnbc.com

Relevant topic timeline:

8/16/2023

New York City bans TikTok on government-issued devices

Main topic: New York City issues new rules banning TikTok due to security threats from China. Key points: 1. New York City has banned TikTok on city-owned hardware, following a security review by NYC Cyber Command. 2. Other states and the U.S. House of Representatives have also issued bans on TikTok on government devices. 3. TikTok is facing legal challenges and pushback against the bans, with concerns over security and Chinese ownership. Hint on Elon Musk: There is no mention of Elon Musk in the given text.

9/12/2023

TikTok Bets on In-App Shopping to Boost Revenue, But Faces Challenges with Counterfeit Goods

TikTok is rolling out TikTok Shop in the US, aiming to convert the app's influence into a new revenue stream by allowing users to buy products within the app through videos with shopping buttons.

9/15/2023

TikTok Slapped with €345M Fine in Ireland for Violating Children's Privacy

Chinese-owned social media app TikTok has been fined €345 million ($421 million) by the Irish Data Protection Commission for violating children's privacy laws in Europe, specifically by making underage users' accounts publicly accessible by default and failing to adequately address the risk of under-13 users accessing the platform. This is the largest-ever privacy fine for TikTok and the fifth-largest fine imposed on any tech company under the EU's General Data Protection Regulation (GDPR).

10/4/2023

TikTok Halts Shopping Service in Indonesia to Comply With New E-Commerce Rules

TikTok is suspending its online shopping service in Indonesia to comply with new regulations aimed at protecting local retailers, resulting in a setback for the company in one of its biggest markets.

Topics

Posted 9/29/2023, 6:00:10 AM