Indonesia Drops the Hammer: Temu Banned for ‘Unfair Competition’ – Google & Apple Told to Block the App!

Source: TechNave


Indonesia has taken a bold step by requesting Google and Apple to block the Chinese e-commerce app Temu from their respective app stores. This comes after the Indonesian government moved to ban Temu from operating within the country due to concerns over the app’s pricing strategy, which they believe could harm local businesses.

According to Reuters, Budi Arie Setiadi, Indonesia’s Communications Minister, explained that the ban was a preventive measure to protect the country’s small and medium-sized enterprises (SMEs) from what the government calls “unhealthy competition.” Temu, which connects consumers directly to factories in China, offers products at significantly lower prices than local retailers. The Indonesian government argues that this practice undercuts local businesses, potentially driving them out of business.

A Preemptive Move to Protect Local Businesses

Setiadi emphasized that Temu’s business model, which undercuts prices by bypassing middlemen and sourcing directly from manufacturers, could have a serious impact on millions of SMEs in Indonesia. These smaller businesses are vital to the economy, and the government sees Temu’s pricing model as a direct threat to their survival.

The Indonesian government also made it clear that it would block any attempts by Temu to invest in or acquire local e-commerce companies, following a similar approach it took last year when it banned TikTok Shop for the same reason.

The Impact of the Ban

While some may argue that such a move could restrict competition and limit consumer choice, the Indonesian government maintains that its priority is to ensure that local businesses are protected from external threats that could destabilize the local economy.

Your Thoughts?

What do you think about Indonesia’s decision to ban Temu and ask Google and Apple to remove it? Is this a protective move for local businesses, or does it raise concerns about limiting competition? Let us know your thoughts in the comments below, and stay tuned to TechNave for more updates on this developing story.

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