Chinese tech big unicorn ByteDance Ltd. is anticipating a loss of over USD 6 billion after three of its apps, together with the massively widespread video app TikTok, have been banned by India this week, a media report right here mentioned.
Besides Tiktok, India banned on Monday 58 different apps with Chinese hyperlinks, together with the favored UC Browser, for participating in actions “prejudicial to sovereignty and integrity of India, defence of India, security of state and public order”. The ban got here within the wake of the continuing stand-off alongside the Line of Actual management in japanese Ladakh with Chinese troops.
The USD 6 billion quantity is most certainly greater than the mixed losses for all the opposite Chinese apps banned by India, China‘s Caixinglobal.com reported, quoting sources near the corporate’s senior administration.
ByteDance grew to become one among China’s newest homegrown expertise corporations to run into rising resistance from overseas governments cautious of the perceived ties to the Chinese authorities and considerations about defending consumer knowledge, it mentioned.
Describing India’s ban of 59 China-developed apps as unprecedented, the report mentioned it’s a enormous blow to the worldwide growth of TikTok, which is touted as the preferred Chinese app abroad. India is its largest market when it comes to customers exterior China, the place the service is named Douyin.
The ByteDance apps banned have been its quick video platforms TikTok and Vigo Video, in addition to its social networking app Helo. Tencent‘s messaging platform WeChat and 5 of its different apps have been additionally banned. Other huge tech China companies, together with Alibaba Group Holding Ltd. and Baidu Inc., additionally had their merchandise banned.
All the 59 apps have now been eliminated from Apple Inc. and Google LLC’s app shops for the Indian market.
TikTok was downloaded in India 611 million occasions on this yr’s first quarter, equating to 30.3% of its whole downloads worldwide within the quarter and almost double the whole variety of India downloads for all of 2019, the report quoted one other publication, SensorTower, as saying.
The penalties of India’s newest determination might be extra long-lasting, analysts advised Caixin.
Responding to the Indian authorities’s transfer, TikTok mentioned it might absolutely adjust to the choice. ByteDance employs over 2,000 full-time native employees in India.