- TikTok pauses ecommerce expansion in Europe to focus on US growth.
- ByteDance aims for $17.5B US TikTok Shop by 2024.
- TikTok faces potential US ban and EU scrutiny over addiction concerns.
TikTok’s got a crush on Uncle Sam
TikTok is applying the brakes to its ecommerce expansion plans in European countries such as Spain, Italy, and Germany, instead focusing its efforts on growing its presence in the US market, according to sources cited by Bloomberg.
ByteDance, TikTok’s parent company, aims to generate substantial growth for TikTok Shop in the US, setting a lofty goal of developing its online shopping arm into a US$17.5 billion business by the end of 2024, despite the looming threat of a potential ban in the country.
TikTok cances to the beat of market demands
A TikTok representative, declining to comment specifically on the reported pause in European expansion, stated that the company’s moves are based on market demands.
In the US, TikTok faces a potential ban if ByteDance fails to sell the app by January, a challenge the company has legally contested, citing commercial, technical, and legal reasons.
In Europe, TikTok finds itself under scrutiny for a separate version of its app that pays users for watching content, used in France and Spain.
This app has been accused of encouraging addiction by promoting extended screen use, adding to the challenges the company faces in the region.
To read the original article: https://www.techinasia.com/tiktok-hits-brakes-european-ecommerce-expansion-focus-growth
