Indonesia bans live streaming goods, Douyin live streaming goods have suffered a major blow! Why is that?
What is hidden behind the draconian measures of the Indonesian government? What will be the future of Douyin live streaming goods?
Recently, the Indonesian government suddenly announced that it will strictly regulate all live streaming platforms involved in e-commerce, requiring them to register in Indonesia and pay taxes, otherwise they will face bans and fines. As soon as this news came out, it caused an uproar, and Douyin live streaming goods were also hit hard.
Background:
Indonesia is the largest economy in Southeast Asia and the fourth most populous country in the world. In recent years, with the spread of the internet and mobile devices, Indonesia's e-commerce market has grown rapidly and is expected to reach $40 billion by 2025. As an emerging form of e-commerce, live streaming has also set off a boom in Indonesia. According to statistics, there are currently more than 10 million live streaming anchors in Indonesia, and more than 100 million users watch live streaming every month.
As the world's largest short video platform, Douyin also has a huge user base and influence in Indonesia. Douyin launched the live streaming feature in Indonesia in 2019 and quickly became one of the most popular live streaming platforms in Indonesia. According to Douyin, in the first half of 2022, Douyin's live streaming transaction volume in Indonesia increased by 10 times.
However, there are also some problems and hidden dangers. On the one hand, due to the lack of effective supervision and norms, some live streaming platforms and anchors have bad behaviors such as false publicity, selling fake and inferior goods, and defrauding consumers, which damages the rights and trust of consumers. On the other hand, because some live streaming platforms and anchors have not registered or paid taxes in Indonesia, the Indonesian government has suffered losses and risks in taxation, data security, anti-monopoly and other aspects.
In order to solve these problems and protect consumers and market order, the Indonesian government has introduced a series of new regulations to strictly regulate live streaming platforms involving e-commerce. According to the new rules, all live streaming platforms engaged in e-commerce in Indonesia must register in Indonesia and pay taxes, otherwise they will face bans and fines. In addition, live streaming platforms must also comply with Indonesia's consumer protection law, anti-monopoly law, data protection law and other relevant laws and regulations, review and supervise live streaming content and transaction behavior, and ensure their legal compliance.
It is reported that Douyin is not registered or paid taxes in Indonesia, and there is no perfect review and supervision mechanism, so it is likely to be unable to pass the Indonesian government's review and face the risk of being blocked. This is undoubtedly a huge loss and challenge for Douyin.
Reasons for the suppression of live streaming goods:
● Economic benefits. The Indonesian government introduced new regulations to protect the country's e-commerce market and consumers on the one hand, and to compete for more economic interests on the other. It is estimated that Indonesia loses about $1 billion a year due to its failure to collect e-commerce taxes. As one of the largest live streaming platforms in Indonesia, Douyin's transaction volume and profits are also very considerable. Therefore, the Indonesian government may want to increase the Indonesian government's fiscal revenue by forcing Douyin to register and pay taxes in Indonesia through new regulations.
• Political influence. Probably for political considerations. As a Chinese company, Douyin has a huge user base and influence in Indonesia, which may have caused alarm and unease in the Indonesian government. Therefore, the Indonesian government may want to restrict or control the development and activities of TikTok in Indonesia through new regulations.
● Geopolitical competition. It may be affected by geopolitical competition. In recent years, under the impetus of the United States, some Western countries have carried out various suppressions and sanctions against China in an attempt to curb China's rise and development. In this context, the Indonesian government may have been pressured or lured by the United States and other Western countries to choose to suppress and exclude Chinese companies.
Indonesia's action had a significant impact on Douyin live streaming, but the specific results are unknown. However, some media reported that countries such as Malaysia and Vietnam may take similar measures, which will undoubtedly pose further challenges to Douyin's live streaming business. Against this backdrop, it will be interesting to see how TikTok responds.
What do you think of Indonesia's crackdown on live streaming goods? Welcome to leave a message to discuss.
(Image source: Internet)