ByteDance, the parent company of TikTok could lose over Rs 45,000 crore because of the ban imposed by India. This has stated by China’s state-run media The Global Times this week. The report says, banning of platforms like Helo and TikTok could severely hit the business for ByteDance. Also Read - TikTok's Indian alternative Chingari's company website reportedly compromised
As per industry reports, TikTok counts India as one of its biggest market outside of China. The Indian government decided to ban over 59 apps earlier this week, including TikTok. And the publication says, this will have dealt a big blow to Chinese traders and investors in the market. “What the Indian government and people have done has dealt a severe blow to the confidence of Chinese investors and traders. And the Indian economy could remain subdued for a protracted time under the devastating shocks from the coronavirus outbreak.” Also Read - TikTok taken down from Play Store, App Store in India following ban
We’re not sure how it has managed to quote losses for ByteDance at Rs 45,000 crore figure. The company has thrived with the platform which has been a hit with other parts of the country. It has also been a source of livelihood for many, who’re seeking newer pastures to earn their living. Also Read - TikTok-parent ByteDance to shut Vigo Video in India by October 31
TikTok banned in India
The banning of the 59 Chinese origin apps in question is speculated to be connected to the escalating border tensions between India and neighboring country China. The tensions escalated since a deadly clash that took place on the border at Galwan Valley, Ladakh in June. The applications were banned by the Indian government few days after that.
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The apps were taken down from the Play Store and Apple Store. In addition to this, the Internet Service Providers (ISPs) were ordered to block access and data to these applications. Other popular ones include UC Browser, WeChat, Shein, WeChat, Shareit, Cam Scanner, and Mobile Legends. Reports also said the apps were violating the terms of usage, users’ privacy, and potentially being used as spyware or malware.