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TikTok's e-commerce Shop goes live in Spain amid US ban concerns

2024-12-10

TikTok, a global phenomenon, has been making significant strides in the e-commerce space. On Tuesday, it was announced that the company's e-commerce Shop feature is going live in Spain, marking the first step in a wider European rollout. This launch comes at a crucial time as a potential U.S. ban looms, and TikTok parent ByteDance is speeding up the expansion of TikTok Shop in European markets.

Unlock the Potential of TikTok's E-commerce Shop

Spain: The First Stop in European Expansion

Users in Spain are now able to make in-app purchases through shoppable videos and LIVE Shopping streams on their For You Feed. They can also browse catalogs on digital storefronts. Spanish businesses and creators will soon have the opportunity to sell products directly through the app. This is a major milestone for TikTok in Europe and showcases the company's commitment to growing its e-commerce presence.TikTok began beta testing Shop in the U.K. in 2021 and has since rolled out the feature in several other countries including Indonesia, Malaysia, the Philippines, Singapore, Thailand, the United States, and Vietnam. Although the company initially planned to launch Shop in Spain, Germany, Italy, France, and Ireland earlier this year, it decided to focus on the U.S. first.At the start of the year, TikTok aimed to grow the size of its TikTok Shop U.S. business tenfold to as much as $17.5 billion. It seems that this focus on the U.S. paid off, as TikTok Shop managed to hit over $100 million in single-day sales on Black Friday, tripling sales from last year. During the Black Friday and Cyber Monday weekend, TikTok Shop also saw a 165% increase in shoppers year-over-year.

TikTok Shop vs. Competitors

TikTok Shop not only challenges Amazon but also fellow Chinese-owned companies Temu and Shein. One of TikTok's key advantages is its extremely popular social media network, which leverages creators and viral videos to reach buyers. Amazon has tried to emulate this experience with the launch of Inspire, a short-form video feed that allows consumers to explore products and shop from content created by influencers. However, TikTok's unique approach has set it apart and given it a competitive edge.The expansion to Spain comes a day after ByteDance and TikTok filed an emergency motion asking an appeals court to temporally block the law that would ban TikTok in the U.S. unless the social network divests from Chinese ownership by January 19. The companies are seeking this hold to give the Supreme Court a chance to assess the case. This shows TikTok's determination to continue operating in the U.S. and expand its e-commerce business globally.In conclusion, TikTok's e-commerce Shop feature is making waves in Europe and beyond. With its innovative approach and growing user base, TikTok is set to become a major player in the e-commerce industry. The launch in Spain is just the beginning, and we can expect to see more expansions and developments in the coming months.

Right after the summer acquisition by French mobile games publisher Voodoo, the popular candid selfie-sharing app BeReal underwent a significant transformation in how it requests user consent for tracking. This change has now led to a privacy complaint in Europe. Confirmed violations of the GDPR can result in substantial penalties.

Privacy Complaint and Accusations

European privacy rights non-profit noyb has filed a complaint against BeReal, accusing it of using manipulative tactics to pressure users into consenting to ad tracking. Since July 2024, European BeReal users have been presented with a consent banner that seems to offer a simple accept/refuse choice. However, what happens after interaction with the banner is where the issue lies. BeReal employs an aggressive "nudging tactic" by reappearing the banner daily when users try to publish a post if they refuse tracking, while those who agree are left undisturbed. 1: This is a clear case of a so-called dark pattern, as noyb argues in their press release. It aims to manipulate users' decisions and annoy them into giving consent. It shows that BeReal may not fully respect European users' right to privacy. 2: The 2022 guidance on dark patterns in social media interfaces by the European Data Protection Board warns against continuous prompting tactics. BeReal's behavior seems to align with these warnings, as it repeatedly asks users to consent, potentially leading them to give in due to fatigue.

Data Protection Lawyer's Perspective

Data protection lawyer Lisa Steinfeld from noyb added in a statement that BeReal's nudging tactics are absurd. When users first encounter the consent banner, they get the impression that the app respects their choice. But later, they realize that BeReal won't accept a "no." It is evident that BeReal is trying to pressure users into consenting to tracking. 1: The GDPR clearly states that consent must be freely given. BeReal's actions seem to disregard this principle, showing a lack of concern for user privacy. 2: By using these tactics, BeReal is not only potentially violating the GDPR but also undermining user trust. Users should have the right to make an informed decision about whether they want to be tracked or not.

Regulatory Action and Request

Noyb has filed the complaint with CNIL, the French data protection watchdog. It is asking the regulator to order BeReal to fix the consent flow and abide by the GDPR's standard of a freely given choice. Additionally, it wants the app to delete any data processed since implementing the dark pattern. A fine is also being urged. 1: This regulatory action is crucial to ensure that BeReal complies with privacy regulations and respects the rights of European users. 2: It sets an example for other apps and shows that privacy violations will not be tolerated. CNIL has the responsibility to enforce the GDPR and protect user privacy.

Skype, once a prominent player in the phone and messaging arena, has undergone a significant transformation. The Microsoft-owned platform has quietly ceased allowing users to top-up accounts with credit and purchase Skype phone numbers. This move has led to a shift towards a SaaS mode, with users now being pushed towards monthly subscriptions for regional and global Skype-to-phone plans.

Microsoft's Skype: From Account Top-Up to Subscription

Trailblazing Beginnings

Skype emerged as a trailblazer in internet calling and messaging services. Founded in 2003 in Europe, specifically Luxembourg, it was one of the first large-scale, disruptive consumer VoIP services. It enabled users to make free internet-based voice calls bypassing traditional telephone lines and associated costs. Later, it added features like instant messaging, video, and file-sharing, which became standard in all messaging apps.Over the years, Skype has had various owners. It was acquired by eBay in 2005 with big ambitions, but those plans didn't pan out. Four years later, eBay sold it to a private consortium. In 2010, Skype filed for an IPO, revealing a massive user base. Microsoft bought it in 2011 and it has remained under its ownership ever since.The service was always free for Skype-to-Skype communication and made money by charging for calls to mobile and landlines. It also had a paid service for buying local phone numbers.

The Decline and Recent Surge

While Skype has been on a decline for some time, it saw a significant spike in usage during the lockdown in 2020. Microsoft revealed that Skype had 40 million daily users in March 2020, a 70 percent month-on-month increase. It was used by 100 million people each month. However, it's not clear how many active users Skype has today as Microsoft hasn't provided an update.Despite this, Skype still advertises Skype Credit and numbers in various places, but the sales have been permanently halted. When logged in through the web, it still invites users to purchase credit but stops short of allowing the transaction."The sales of new Skype numbers and Skype credit have been permanently halted," the spokesperson said. "For some customers, the interface for purchasing new Skype credit may still be visible in certain entry points, although payment attempts will not go through. We are aware of this issue and working on making the necessary updates."In short, the changes last week are likely to impact millions of people who used Skype for its phone functionality. Modern messaging apps like WhatsApp don't have this feature, while Zoom offers a similar product targeted at the business market.