Bytedance Predicts a $6Bn Loss from TikTok Ban
Chinese Company Unicorn Bytedance Ltd. is estimating a loss of around $6Bn after three of it’s app including the popular short video app, TikTok was banned in India last week. This loss amount predicted was only from TikTok, which is more than the loss of 58 Apps Combined. One of the senior officials of Bytedance said their revenue from TikTok were highest in India.
On Monday, the Government of India banned 59 Chinese Apps under National Security Grounds which also includes famous short video app, TikTok. However, Ministry of Information and Technology have demanded an explanation of the security policies of each applications from their respective heads and if the security policy are found perfect, the interim ban may be lifted.
Bytedance become one of the largest homegrown technology giants in China which expanded its wings into foreign countries. Right now, Bytedance is based in Beijing. The three apps of Bytedance which were banned by the Indian Government are TikTok, Vigo Video, and Helo App.
Experts believe that the App Ban was a result of the Indo-China Clash at Galwan Ghati Border, where 20 of the Indian Soldiers were martyred. The deaths from the Chinese Side have not been disclosed but as per estimates, 40-50 soldiers of their side have been killed.
TikTok is the most popular Chinese Application around the world. India is the second largest revenue market of TikTok after China with around 120 Million Users. It was reported that the app was downloaded 611 Million times in India itself in the first quarter of 2020. After the ban, Bytedance is now estimating a huge loss. Apart from TikTok, Tencent’s WeChat and Alibaba Group’s Holding and Baidu Ltd. were also banned.
TikTok has over 2000 employees in India itself. TikTok India’s head Nikhil Gandhi in an earlier statement said that TikTok has never shared any private information of users with any foreign company, not even to China. However, this is not the first time that TikTok has been targeted. In April 2019, TikTok faced an interim ban for 2 Weeks. But now it seems that the ban will last longer than predicted.
Tags: #TikTok #ChineseAppsBan #Newsques #BoycottChina #Bytedance #GoI