Decoding The App Ban Growth Plans Go Astray For Chinese Firms

With their apps losing millions of users in India, parent companies may even see a decline in valuation

- Manu Kaushik and Nidhi Singal

The comprehensive ban on TikTok and 58 other Chinese apps leaves the flourishing app economy in a state of disarray in the midst of a heightened sense of nationalism following the India-China standoff.

The ban has wide-ranging implications for companies who own these apps; thousands of employees of these firms, besides an energetic breed of content creators and influencers who practically now suffer a ‘career setback’.

ON A STICKY WICKET

Therefore, let’s begin with the legality of the ban and if the government has got all aspects covered. According to experts, in terms of legal and constitutional competencies, the government seems to be on a sticky wicket.

First, the Ministry of Electronics and Information Technology (MeitY) order issued on Monday doesn’t talk about specific evidence of violation in the order. It will have to be brought forward in case the ban is legally challenged, which is very likely.

The order talks about “misuse of some mobile apps on Android and iOS platforms for stealing and surreptitiously transmitting users’ data in an unauthorised manner to servers which have locations outside India.”

This issue is particularly tricky because India still doesn’t have the Data Protection Act in place which specifically deals with such issues.