TikTok’s e-commerce feature, known as TikTok Shop, allows creators and merchants to run businesses directly on the app. This feature has seen substantial growth, particularly in the US, where more than 500,000 merchants were active by the end of 2023, doubling from three months earlier.

On May 31, 2024, Bloomberg reported that TikTok has decided to pause its ambitious plans to expand its e-commerce operations across major European markets. Instead, the ByteDance-owned platform will concentrate its efforts on the United States, which is grappling with significant regulatory challenges. The platform aims to grow its US e-commerce business tenfold to $17.5 billion this year, leveraging its unique combination of engaging video content and seamless shopping experiences.

Despite initial plans to roll out TikTok Shop in countries like Germany, France, Italy, Spain, and Ireland, the company has put these expansions on hold. This decision comes amid heightened scrutiny from both the US and EU regulators. In the US, TikTok is fighting a “divest-or-ban” law, while in the EU, the platform faces potential fines under the new Digital Services Act for not adequately protecting minors.