ByteDance Ltd’s TikTok is looking to invest in Indonesia-based GoTo Group’s online retail unit Tokopedia. Both companies are in talks for a possible deal, a news agency report said Bloomberg.
Citing people familiar with the matter, the report said the discussions also involve the two companies jointly building a new e-commerce platform.
GoTo shares rose as much as 8.3% in Jakarta.
In September, Indonesia announced sweeping regulations that forced TikTok to share payments from shopping in the country.
The new rules prohibit social media companies in Indonesia from handling direct payments for online purchases.
As affected by the new rules, shortly after that TikTok stopped online shopping in Indonesia.
Consideration for a deal is ongoing and talks could still fall apart, the report also said, adding that a deal would also be subject to regulatory approval.
Indonesia is among the first countries in Southeast Asia to push back against TikTok.
Following the Indonesian restrictions, Malaysia has also said it is studying the possibility of regulating TikTok and its e-commerce operations.
TikTok is already facing potential bans and scrutiny in countries like the US, Europe and India over national security concerns.
In September, European regulators slapped TikTok with a $368 million fine for failing to protect children’s privacy.
The Irish Data Protection Commission, the main privacy regulator for Big Tech companies whose European headquarters are mostly in Dublin, said it was fining TikTok 345 million euros and blaming the platform for the violations in the second half of 2020.
The investigation found that the sign-up process for teenage users resulted in settings that made their accounts public by default, allowing anyone to view and comment on their videos.
In a statement, TikTok said it disagreed with the decision, “particularly the level of the fine imposed.”
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Updated: 23 Nov 2023, 16:12 IST