Tiktok owner halts US rollout of shop service amid security fears
TIKTOK, the Chinese-owned social media app, has reportedly slammed the brakes on a launch of its digital shopping service in America as retailers consider the possibility of a national security ban.
The app’s digital shopping service, which was launched in Britain two years ago, is thought to have been held up amid demands of a forced sale of the app by US regulators and calls for a ban.
Tiktok,whic his owned by China head quartered Byte dance, launched its shopping tools in Britain in 2021. In a challenge to Amazon’s online selling, app users can buy products that are promoted by influencers and brands, as well as shop from live videos with Tiktok stars.
Live-streaming shopping has become a multibillion-dollar industry in China with Douyin, the Chinese version of Tiktok also controlled by Bytedance, emerging as one of its leading players. More than 320m Chinese shoppers are estimated to use live-stream shopping, according to Insider Intelligence. Asset manager Cinda Securities estimated the market was worth about $42bn (£33bn) at the end of last year.
However, while live television shopping has a long history in Britain with channels such as QVC, live-streaming apps for digital shopping have failed to take off in the same way in the West.
The Wall Street Journal reported that Tiktok had pushed back plans to launch its digital shopping experience in the US amid limited interest from merchants and concerns the app could face further restrictions from politicians. The social media app has been testing its shopping service since November in America with brands such as Pacsun and Revolve.
Tiktok is used by more than a billion people with an estimated 150m users in the US, but its Chinese ownership has prompted concerns that shoppers’ data could be accessed by Beijing.
US regulators have demanded that Bytedance either sell the app or risk a ban. Tiktok has argued the effort to force a sale “doesn’t solve” concerns over data security. It has insisted it would not comply with any demands from Beijing to harvest data.
Meanwhile, US politicians have put forward a law that would give the president the authority to ban foreign-owned apps deemed to be a security risk.
A Tiktok spokesman said: “The launch of Tiktok Shop in the US has not been delayed. We’re committed to our strategy of testing and learning, and we’re excited to continue expanding our test in the US by inviting more merchants to join us as interest in Shop continues to grow.”