Indonesia Bans Goods Transactions on Social Media Platforms, Dealing Blow to TikTok – News18

Last Updated: September 27, 2023, 15:15 IST

Indonesia’s new regulation is yet one more setback for TikTok, which has confronted intense scrutiny within the United States and different nations in latest months over customers’ information safety and the corporate’s alleged ties to Beijing. (Image: News18)

Indonesia bans social media items transactions to curb tech giants’ affect on small companies, concentrating on TikTok

Indonesia has banned items transactions on social media platforms in a brand new regulation, its commerce minister stated Wednesday, as Jakarta goals to rein in direct gross sales by main tech corporations it says are harming tens of millions of small companies.

Government officers in latest weeks known as for social media and e-commerce to be decoupled, concentrating on platforms they are saying interact in monopolistic practices that threaten offline sellers, with some particularly blaming Chinese-owned quick video app TikTok.

“This trade regulation has been in force (since yesterday),” Trade Minister Zulkifli Hasan advised a press convention within the capital Jakarta.

He stated social commerce platforms would have every week to adjust to the brand new rule.

The regulation means social media corporations will be unable to conduct direct transactions however solely promote merchandise on their platforms.

Laws within the archipelago nation didn’t cowl direct transactions by means of social media platforms similar to TikTok, Facebook or Instagram earlier than the brand new regulation.

The new regulation is yet one more setback for TikTok, which has confronted intense scrutiny within the United States and different nations in latest months over customers’ information safety and the corporate’s alleged ties to Beijing.

Indonesia is likely one of the world’s largest markets for TikTok Shop and was the primary to pilot the app’s e-commerce arm.

But Southeast Asia’s largest financial system is now the primary nation within the area to behave in opposition to the platform’s rising reputation within the social commerce area.

The ministerial-level regulation — an modification to a commerce regulation issued in 2020 — didn’t want approval by lawmakers.

(This story has been edited by News18 workers and is revealed from a syndicated news company feed – AFP)

Source web site: www.news18.com

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