TikTok predicts over $6 bn loss from India ban - more than remaining 58 apps combined

Chinese tech giant unicorn ByteDance Ltd. is anticipating a loss of over USD 6 billion after three of its apps, including hugely popular video app TikTok, were banned by India this week, a media report said.

Besides Tiktok, India banned on Monday 58 or apps with Chinese links, including popular UC Browser, for engaging in activities “prejudicial to sovereignty and integrity of India, defence of India, security of state and public order". ban came in wake of ongoing stand-off along Line of Actual control in eastern Ladakh with Chinese troops.

USD 6 billion amount is most likely more than combined losses for all or Chinese apps banned by India, China’s Caixinglobal.com reported, quoting sources close to company’s senior manment.

ByteDance became one of China’s latest homegrown techlogy companies to run into growing resistance from foreign governments wary of perceived ties to Chinese government and concerns about protecting user data, it said.

Describing India’s ban of 59 China-developed apps as unprecedented, report said it is a huge blow to global expansion of TikTok, which is touted as most popular Chinese app overseas. India is its largest market in terms of users outside China, where service is called Douyin.

ByteDance apps banned were its short video platforms TikTok and Vigo Video, as well as its social networking app Helo. Tencent’s messaging platform WeChat and five of its or apps were also banned. Or big tech China firms, including Alibaba Group Holding Ltd. and Baidu Inc., also had ir products banned.

All 59 apps have w been removed from Apple Inc. and Google LLC’s app stores for Indian market.

TikTok was downloaded in India 611 million times in this year’s first quarter, equating to 30.3% of its total downloads worldwide in quarter and nearly double total number of India downloads for all of 2019, report quoted ar publication, SensorTower, as saying.

consequences of India’s latest decision could be more long-lasting, analysts told Caixin.

Responding to Indian government’s move, TikTok said it would fully comply with decision. ByteDance employs over 2,000 full-time local staff in India.