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TikTok Suspends Planned Data Usage Policy Change Amid New EU Investigation

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TikTok Updates Ad Policies to Limit Unwanted Exposure Among Younger Users in Europe

This doesn’t look great for TikTok, which is already under scrutiny in several regions.

Today, TikTok has confirmed that it has suspended a planned change to its privacy policy relating to the use of user insights for targeted advertising, amid questions over whether the change is actually legal under the latest EU provisions for data protection and control.

Last month, TikTok began showing users in Europe, the UK and Switzerland new, in-app notifications informing them of the upcoming change to its data collection policies.

As you can see, within these new pop-up alerts, TikTok explained that, as of July 13th (i.e. tomorrow), it would look to use ‘legitimate interests’ as a legal basis for ad personalization, as opposed to seeking explicit user consent for utilizing personal data within its ad targeting process.

The difference here is significant – under EU law, the ‘legitimate interest’ provision comes under a different category to personalized data tracking, and avoids the need to ask users for explicit consent to use their personal info. That would essentially enable TikTok to continue serving personalized ads without having to ask for user permission, which is what the EU’s ePrivacy Directive is designed to facilitate, giving people more control over how their data is used.

The ‘legitimate interest’ provision is somewhat similar to ‘fair use’ within press coverage, with media outlets able to use certain content and references if it’s arguably within the public interest. Legitimate interest is the same, in that a company can argue that it’s within the interests of both the company and users that it utilizes such insights.

Targeted advertising is not what this provision was designed to cover, but TikTok was hoping to use the loophole to ensure optimal performance of its ads.

Indeed, in a statement on its decision to pause the update, pending an EU investigation, TikTok said that:

“We believe that personalized advertising provides the best in-app experience for our community and brings us in line with industry practices, and we look forward to engaging with stakeholders and addressing their concerns.

Of course, TikTok knows full well that this was not what the ‘legitimate interest’ provision was designed for, and it was trying to sneak it in under the radar. Which makes some sense, in a certain reading of the law as it stands – but it’s not exactly a great way for the platform to endear itself to regulators, and ensure ongoing partnership within the sector.

As noted, amid TikTok’s ongoing rise, questions continue to swirl around the safety of the app, and how it uses people’s data, both in terms of targeted ads and, potentially, with respect to requests for info from the Chinese Government.

Last month, an FCC Commissioner in the US called on both Apple and Google to ban TikTok from their app stores, due to concerns that the app could be used as a surveillance tool, of sorts, by the Chinese Government. TikTok has since sought to reassure US users that their data is safe.

Also last month, TikTok was found to be failing in its duty to protect children from hidden advertising and inappropriate content, in breach of EU rules, another concern for the app in the European region.

This latest issue will not help to improve relations between the app and EU regulators, and could well spark a new round of scrutiny on its other business practices and impacts, which could again put its future in jeopardy.

It seems unlikely TikTok would be fully banned, given its rising presence and usage around the world. But as the CCP continues to bristle with various other governments, questions will remain – while issues and violations like this do nothing to help the app establish better working relationships with relevant authorities, who could decide on its ultimate fate.

It seems unlikely, but also not impossible. TikTok is the app of the moment, and the key place to be in many respects. But its future may still be questionable in a broader sense.



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TikTok announces $1.5 bn deal to restart Indonesia online shopping business

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TikTok has around a billion montly users and its growth among young people far outstrips its competitors

TikTok has around a billion montly users and its growth among young people far outstrips its competitors – Copyright AFP/File SEBASTIEN BOZON

Chinese-owned short video app TikTok on Monday announced a $1.5 billion investment in GoTo group in a deal that would allow it to restart its online shop in Indonesia, the companies said in a statement.

Under the deal, TikTok Shop will be merged into GoTo’s Tokopedia, and TikTok will have a controlling stake in that entity.

“TikTok has committed to invest over US$1.5 billion in the enlarged entity over time, to provide future funding required by the business, without additional dilution to GoTo,” the Indonesian firm said.

“TikTok, Tokopedia and GoTo will transform Indonesia’s e-commerce sector, creating millions of new job opportunities over the next five years.”

“The strategic partnership will commence with a pilot period carried out in close consultation with and supervision by the relevant regulators,” GoTo said, adding that it expected the deal to close in 2024.

TikTok in October shut down its online shop in Indonesia, one of its biggest markets.

That came days after Southeast Asia’s largest economy banned sales on social media to protect millions of small businesses.

The regulation means social media firms cannot conduct direct transactions but only promote products on their platforms in Indonesia, the first country in the region to act against TikTok’s growing popularity as an e-commerce site.

Indonesia’s e-commerce market is dominated by platforms such as Tokopedia, Shopee and Lazada but TikTok Shop gained a significant market share since launching in 2021.

Indonesia, with 125 million users, is TikTok’s second-largest global market after the United States, according to company figures.

The Indonesian ban came after calls grew for regulation governing social media and e-commerce, with offline sellers seeing their livelihoods threatened by the sale of cheaper products on TikTok Shop and other platforms.

The regulation was yet another setback for TikTok, which has faced intense scrutiny in the United States and other nations in recent months over users’ data security and the company’s alleged ties to the Chinese government.

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TikTok spends $1.5B on Tokopedia JV to get around Jakarta social e-commerce ban

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TikTok spends $1.5B on Tokopedia JV to get around Jakarta social e-commerce ban

Just two months ago, ByteDance-owned TikTok abruptly closed its shopping platform in Indonesia to comply with surprise regulations from the Southeast Asian country’s government. Jakarta ordered social media companies like TikTok and Facebook to stop selling goods on their platforms, demanding a separation of social media and e-commerce services.

TikTok now seems to have found a way to revive its e-commerce dreams in Indonesia by spending billions to start a joint venture with Indonesian tech giant GoTo. On Monday, the two companies announced that TikTok Shop will now be available on GoTo’s Tokopedia platform.

“Tokopedia and TikTok Shop Indonesia’s businesses will be combined under the existing PT Tokopedia entity in which TikTok will take a controlling stake. The shopping features within the TikTok app in Indonesia will be operated and maintained by the enlarged entity,” TikTok said in a statement Monday.

TikTok will invest over $1.5 billion into Tokopedia, taking a 75% stake in the platform. GoTo will remain an ecosystem partner to Tokopedia and receive an “ongoing revenue stream from Tokopedia commensurate with its scale and growth,” but will not be required to continue funding the platform. Further funding from TikTok also won’t reduce GoTo’s remaining 25% stake.

Getting back into the Indonesian ecommerce market will be a win for TikTok. Indonesia, which is the platform’s largest market outside of the U.S., is key to Tiktok’s online shopping aspirations. In June, CEO Shou Zi Chew pledged to “invest billions in Indonesia and Southeast Asia over the next few years.”

ByteDance wants to replicate its Chinese e-commerce successaround the globe. Last year, consumers spent in China 1.41 trillion yuan ($196 billion) on products sold on Douyin, the version of TikTok for the Chinese market, The Information reported in January. ByteDance, through TikTok, is expanding its online shopping services in both Southeast Asia and the U.S. Yet the company is struggling to win over American consumers: The Information reported in August that U.S. shoppers are spending just $4 million a day, equivalent to $1.4 billion over a whole year, on goods sold on the social media platform. (TikTok officially launched TikTok Shop in the U.S. in September, though sellers have complained about a flood of low-quality products on the platform).

Before Indonesia imposed its ban in September, the country’s president, Joko Widodo, complained that social media platforms were threatening local micro-, small- and medium-sized enterprises. Government officials also accused TikTok of engaging in predatory pricing.

GoTo’s deal with TikTok means the Indonesian tech giant is giving up its majority ownership of Tokopedia . Tokopedia started in 2008 and grew to be one of Indonesia’s largest e-commerce platforms. The company merged with ride-hailing startup GoJek in 2021, becoming GoTo Group. The company debuted on Jakarta’s stock exchange in April last year.

Yet the company has struggled to wow investors since then. GoTo has yet to make a profit since becoming a public company. The tech firm reported 2.4 trillion Indonesian rupiah ($147 million) in net losses last quarter, significantly less than the 6.7 trillion rupiah ($428 million) it lost this time last year.

Investors do not appear to be thrilled by the news of GoTo’s TikTok partnership. Shares fell by over 19% by 2:30pm Indonesia time on Monday, erasing gains made late last week as rumors began to build of the new partnership.

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How to Train ChatGPT to Write in Your Brand’s Tone of Voice [Infographic]

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How to Train ChatGPT to Write in Your Brand’s Tone of Voice [Infographic]

Are you looking for ways to improve your ChatGPT output? Want to train it to write in a more unique tone of voice, in order to better suit your branding?

The Creative Marketer shares his ChatGPT prompt tips in this infographic. To enact these, add “Write like [INSERT CHARACTER]” at the start of your ChatGPT instructions.

TCM breaks things down into the following categories:

  • Innocent
  • Sage
  • Explorer
  • Ruler
  • Creator
  • Caregiver
  • Lover
  • Hero
  • Everyman
  • Magician
  • Jester
  • Outlaw

Check out the infographic for more information.

A version of this post was first published on the Red Website Design blog.

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