Menu

Search

  |   Law

Menu

  |   Law

Search

TikTok Halts E-Commerce Platform in Indonesia After Government Ban

tiktok-shop-ban-indonesia-2023.jpg

TikTok, the Chinese short-form video hosting service owned by ByteDance, pulled the plug on its e-commerce platform in Indonesia. This comes after the Indonesian government blocked the TikTok Shop in the country.

As per The New York Times, TikTok closed down its online shopping service in the country on Wednesday this week. This was done soon after the TikTok Shop was banned on social media platforms. The company said it took this step to protect local business owners.

What is TikTok Shop?

The TikTok Shop is a marketplace where creators and businesses with a TikTok account can sell their goods on the platform. Users may add the “Shop” button on their videos and streams so people can see and buy items without leaving the app.

The marketplace was added as TikTok is looking for other ways to generate more revenues from the platform. Indonesia was one of the first few regions where TikTok Shop was launched. ByteDance sees major potential there due to its massive population and being the app’s second-largest user base.

The Ban Order From the Authorities

Unfortunately, the country has now become the first to issue a ban on TikTok’s e-commerce platform. It was clarified that the app itself is not restricted, so people can still post and view video clips. However, buying and selling goods are no longer allowed on TikTok and other social media platforms with e-commerce features.

“Our priority is to remain compliant with local laws and regulations,” TikTok said. “As such, we will no longer facilitate e-commerce transactions in TikTok Shop Indonesia by 17:00 GMT+7, October 4, and will continue to cooperate with the relevant authorities on the path forward.”

The decision to block the online shopping services comes after the nation’s President, Joko Widodo, called for new rules for social media. According to CNBC, he explained that the appearance of these online marketplaces contributed to the decline of sales for local businesses.

Photo by: Solen Feyissa/Unsplash

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.