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Vietnam completes investigation into TikTok for violating laws on e-commerce

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Bloomberg — Vietnam has completed a nearly five-month-long investigation into TikTok, with authorities finding that it violated laws on e-commerce, information security and child protection, according to a report in the Business Times.

The inspection team, which included representatives from six ministries, said TikTok violated a number of Vietnamese regulations on content sharing and e-commerce services. Le Quang Tu Do, director of the Department of Radio, Television and Electronic Information, noted that TikTok’s Singapore-based division manages the company’s services in Vietnam, rather than being a legal entity in the country.

Vietnam’s latest draft decree regulates the management of Internet services and online information, stipulating that foreign cross-border information providers must install at least one server in Vietnam to meet data storage and censorship requirements. Providers must temporarily lock content related to user complaints within 48 hours; and block and remove infringing content and services within 24 hours of receiving a legal request.

The ministry found that TikTok Singapore stored illegal information, such as fake news, incitement to violations, and content harmful to children, on local servers in Vietnam, and that users’ copyrighted content and children’s privacy were not properly protected.

Do said TikTok Singapore and its two offices in Vietnam need to resolve these violations within 30 days.

TikTok has about 50 million users in Vietnam, according to DataReportal data. In the second quarter of this year, TikTok Shop, the online shopping arm of TikTok, surpassed Lazada with a 20% market share, becoming the second-largest e-commerce platform in Vietnam after Singapore’s Shopee.

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