Chinese Firm ByteDance Predicts Over $6 Billion Loss After India's Ban On TikTok

 - Sakshi Post

The government of India has banned TikTok and 58 other Chinese apps including the Helo, UC Browser, Shareit, etc for engaging in activities "prejudicial to sovereignty and integrity of India, defence of India, the security of the state and public order." Chinese tech giant unicorn ByteDance Limited is expecting a loss of a huge amount of money as a result of TikTok being banned in India. According to the reports, the firm expects a loss of $6 billion after three of its apps, including one of the most popular TikTok video apps were blocked in India.

The apps have been blocked amid escalating tensions between India and China following clashes at the border two weeks ago. The statement from the Ministry of Electronics and IT (MeitY) said that "Complaints were received from various sources, including several reports of misuse of some mobile apps for stealing and secretly transmitting user's data to servers outside India in an unauthorized manner."

China's Caixinglobal.com reported that, "The $6 billion amount is more likely than the combined losses for all other Chinese apps banned by India." However, India wasn't the major source of revenue for TikTok but it was one of the top nations to have more downloads for the app. According to the Global Times report, the firm ByteDance has invested more than USD 1 billion in the Indian market over the last few years and now the ban of the apps may prove disastrous for the company's business in India.

China's ByteDance has three apps - TikTok, Vigo Video, and social networking app Helo and these were amongst the 59 banned apps released by the Indian government on June 29th. Tencent's messaging platform WeChat and five of its other apps were also banned. In 2019, TikTok registered 323 million downloads in India and accounted for 44 percent of total TikTok app downloads. Currently, there are 145 million active monthly users and a total of 200 million users in India.

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