On October 5, the shop feature on TikTok in Indonesia was officially closed under the instructions of the local government.
According to CNBC, this move was made after Indonesian President Joko Widodo called for regulations on social media platforms. He said the influx of platforms with added shop features has caused a sales decline for domestic businesses by “flooding the market with foreign imports.”
In response, Communications and Digital Minister Fahmi Fadzil recently mentioned that he had also received complaints from Malaysians about whether our government will follow suit with the Indonesian government’s move.
However, on the other hand, the minister also said that there are stores that have raised issues about the TikTok shop feature as there is a “price competition for products sold through the platform”, reported BERNAMA.
“Many Malaysians use the TikTok Shop platform to sell goods, so I will ask the Communications and Multimedia Commission (MCMC) and the ministry to look into the basis of the action taken by the Indonesian government.”
He adds, “I think TikTok needs to come forward and give an explanation because one of the reasons why TikTok Shop is banned in Indonesia is because of the issue of predatory pricing, which is threatening local entrepreneurs in Indonesia.”
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