TikTok drops Europe and US expansion ambitions soon after US Senate probe – Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

ICT Tac backed out of expanding its live e-commerce initiative in Europe and the United States following internal issues and its inability to gain traction with consumers, Financial Times reports.

ByteDance Ltd launched the “TikTok Shop” in the UK in 2021, its first market outside of Asia. Brands and influencers live stream and sell products through a clickable orange shopping cart on the screen of the viral short video app.

Live commerce, seen as the future of shopping on social media platforms, has proven attractive to ByteDance, which has seen sales on Chinese sister app Douyin more than triple year-on-year. , selling more than 10 billion products, FT noted.

Read also : More trouble brews for Alibaba, TikTok and others as China steps up live crackdown

TikTok aimed to launch the feature in Germany, France, Italy and Spain in the first half of 2022 before expanding to the United States later in 2022.

However, he scrapped expansion plans after the UK project fell short of its goals and influencers pulled out of the program. Many TikTok Shop live streams have suffered low sales despite grants and cash incentives encouraging brands and influencers to sell through the app.

TikTok has seen a mass exodus of e-commerce team staff to London over an alleged aggressive work culture. TikTok Shop Europe replaced Joshua Ma for not allowing maternity leave.

TikTok acknowledged the plans focused solely on the success of the UK proposal. The product was recently launched in Thailand, Malaysia and Vietnam and has been available in Indonesia since 2021.

At the same time, the Federal Communications Commission urged Apple, Inc. (NASDAQ: AAPL) and Alphabet, Inc. GOOGL GOOG to remove the TikTok app from their respective app stores citing national security risks.

Recently, TikTok confirmed that China-based employees could access US user data under certain circumstances in response to requests from Republican US senators.

Photo by olivier-bergeron via Unsplash

Norman D. Briggs