India said Monday it was blocking TikTok and 59 other foreign apps, citing concerns the Chinese app is “stealing” user data as India clashes with China over a disputed border between the two countries.
This is the first major challenge the viral video-sharing app faces under its new CEO, Kevin Mayer, who was appointed to the position in May.
Mayer plans to address TikTok’s around 2,000 “panic-stricken” employees on Tuesday, Indian outlet Business Today reports. The head of TikTok in India has reportedly said there will be no layoffs as a result of the ban.
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The viral video-sharing app TikTok is facing a ban in one of its biggest global markets just a month into its new CEO’s tenure.
The Indian government said on Monday that it had banned access to TikTok, which is owned by the Chinese company ByteDance, along with dozens of other Chinese apps as tensions escalate between the two countries amid a violent border dispute.
India’s ban on TikTok is the first big challenge Kevin Mayer is facing as the company’s CEO, a position he stepped into June 1. Mayer, who previously led Disney’s streaming services, is now tasked with steering the business as it handles the potential loss of a userbase in India surpassing more than a half-million downloads.
TikTok’s India operations head said in a statement that the company is “in the process” of complying with India’s ban and organizing meetings with Indian government stakeholders. Mayer, who oversees TikTok’s global operations, addressed the around 2,000 employees working out of TikTok’s India offices on Tuesday, local news outlet Business Today reported.
TikTok did not respond to Business Insider’s request for comment about Mayer’s meeting with TikTok India employees.
— TikTok India (@TikTok_IN) June 30, 2020
TikTok surpassed two billion all-time global downloads in May, leading the platform to set a record for the most downloads any app has ever had in a single quarter. Since TikTok was introduced to international markets in 2017, the app has seen nearly 660 million installs in India, according to data that app analytics firm Sensor Tower provided to Business Insider.
The loss of India’s massive market could be a blow to TikTok and its parent company, ByteDance. ByteDance reported $5.6 billion in revenue in the first three months of 2020, representing a 130% grown in revenue year-over-year. Outlets have previously reported ByteDance is considering plans to go public on the Hong Kong stock exchange, an IPO analysts have valued between $150 billion and $180 billion.
Mayer faces the task of mitigating the drastic loss in growth TikTok could face if its ban in the Indian market continues. To date, India comprises nearly 30% of all downloads across the App Store and Google Play, according to Sensor Tower. Sensor Tower anticipates that if the ban in India were to remain in effect for the remainder of 2020, TikTok could lose …read more
Source:: Business Insider