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TikTok has reportedly decided to halt its plans for expanding its eCommerce business in key European markets. The popular social media platform, owned by ByteDance, will instead focus on strengthening its presence in the United States, its most profitable market.
Initially, TikTok aimed to launch its shopping platform in Spain, Germany, Italy, France, and Ireland by July. However, according to a Bloomberg report, the company has paused these expansion plans, as well as its intentions to introduce the Shop feature in Mexico and Brazil.
The decision reflects ByteDance’s strategy of focusing on the U.S. ByteDance’s leadership recognizes the importance of concentrating on this market which boasts 170 million monthly users, according to the report.. The company has set a goal to grow its merchandise volume in the U.S. up to $17.5 billion this year.
A significant factor in TikTok’s decision is the potential regulatory scrutiny it may face in Europe, similar to challenges encountered in the U.S., the report said. The company is aware that a full-scale European expansion could lead to regulatory challenges and wants to avoid such complications.
