TikTok hits brakes on ecommerce expansion in Europe to focus on US growth

Photo credit: TikTok

TikTok is hitting the brakes on its ecommerce expansion in Europe – including in countries like Spain, Italy, and Germany – as it shifts its focus on its US operations, Bloomberg reported, citing sources briefed on the matter.

The short-video platform’s parent company, ByteDance, is looking to generate more growth for TikTok Shop in the US even as it faces a potential ban in the country.

Earlier this year, the company said it aims to develop its online shopping arm to become a US$17.5 billion business in the US by the end of 2024.

Despite declining to give a statement on the reported pause in the firm’s European expansion, a TikTok representative told Bloomberg that the company’s moves are based on market demands.

In the US, TikTok could be banned if ByteDance doesn’t sell the app by January. ByteDance has legally challenged this, claiming that it is impossible to divest for commercial, technical, or legal reasons.

TikTok reportedly already started development for a US version of its recommendation algorithm, but the company has since dismissed this claim.

Meanwhile in Europe, TikTok is under investigation for another version of its app that pays users for watching content. The app, used in France and Spain, was said to encourage addiction by promoting extended screen use.

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