TikTok ban: ByteDance set to suffer a whopping $6 billion loss
Indian government’s decision to ban 59 Chinese apps will lead to massive losses for all these companies, with ByteDance – TikTok’s parent company – set to suffer the most.
Indian government’s decision to ban 59 Chinese apps will lead to massive losses for all these companies, with ByteDance – TikTok’s parent company – set to suffer the most. According to a report published by China's state-run media The Global Times, ByteDance - the parent company of the TikTok and Helo apps could lose up to $6 billion (Rs 45k crore) after the Indian government’s decision to ban them.
While India wasn’t the major source of revenue for TikTok, it was among the top nations to have most downloads for the app. Also, ByteDance had invested heavily in the Indian market hoping to penetrate this vast internet-using market.
The move has also dealt a severe blow to the confidence of Chinese investors and traders.
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The Indian government on Monday banned 59 apps with China links including TikTok, SHAREit, UC Browser, Baidu map, Helo, Mi Community, Club Factory, WeChat and UC News in view of the information available that they were engaged in activity "which is prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order".
Law, Electronics and Information Technology Minister, Ravi Shankar Prasad said that government has banned apps for safety, security, defence, sovereignty and integrity of India.
"For safety, security, defence, sovereignty & integrity of India and to protect data & privacy of people of India the Government has banned 59 mobile apps. Jai Hind!," he said in a tweet.
The ban came weeks after a violent face-off in Ladakh's Galwan valley between te soldiers of two countries where 20 Indian soldiers lost their lives while the Chinese side suffered 43 casualties including dead and seriously injured.
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