ByteDance Ltd’s TikTok is looking to invest in Indonesia-based GoTo Group’s online-retail unit Tokopedia. Both the companies are in talks for a potential deal, said a report by news agency Bloomberg.
Citing people familiar with the matter, the report said that the discussions also involve the two companies jointly building a new e-commerce platform.
Shares of GoTo rose as much as 8.3% in Jakarta.
In September, Indonesia had announced sweeping regulations that forced TikTok to split payments from shopping in the country.
The new rules bar social media companies in Indonesia from handling direct payments for online purchases.
As affected by the new rules, shortly after that TikTok halted online shopping in Indonesia.
Deliberations for a deal are ongoing and talks could still fall apart, the report also said, adding that an agreement would also be subject to regulatory approval.
Indonesia is among the first countries in Southeast Asia to push back against TikTok.
Following the Indonesia curbs, Malaysia has also said that it is studying the possibility of regulating TikTok and its e-commerce operations.
TikTok is already facing possible bans and scrutiny in countries such as the United States, Europe and India on national security concerns.
In September, European regulators slapped TikTok with a $368 million fine for failing to protect children’s privacy.
Ireland’s Data Protection Commission, the lead privacy regulator for Big Tech companies whose European headquarters are largely in Dublin, had said that it was fining TikTok 345 million euros and reprimanding the platform for the violations dating to the second half of 2020.
The investigation had found that the sign-up process for teen users resulted in settings that made their accounts public by default, allowing anyone to view and comment on their videos.
In a statement, TikTok had said that it disagrees with the decision, “particularly the level of the fine imposed.”
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