TikTok is said to be developing a standalone US-only app with separate algorithms and infrastructure as the company prepares to meet a September deadline for potential divestiture, according to a detailed report by the South China Morning Post.

The Chinese-owned social media giant has been working “under tight deadlines” to build a completely separate version of its platform specifically for American users, sources familiar with the matter told SCMP. This US-only app initiative, known internally as “M2,” represents the most significant technical separation between TikTok’s American operations and its global business to date.

The separate algorithm could address core concerns

The TikTok US-only app strategy centers on creating an independent recommendation system that would operate entirely apart from ByteDance’s global infrastructure. The new app is expected to use only data from US users to train its recommendation algorithms, further distancing it from TikTok’s global systems, according to the SCMP report.

This algorithmic separation addresses the heart of Washington’s national security concerns. US officials have consistently argued that TikTok’s Chinese ownership makes it susceptible to Beijing’s influence, potentially allowing the Chinese government to manipulate content recommendations or access American user data.

The move could open the door to resolving years of debate over whether the company would share what is considered the crown jewel of the ByteDance-owned short video-sharing platform—the recommendation algorithm, SCMP noted.

September deadline adds urgency

The M2 project faces a September deadline. Reports suggest that TikTok is building a new version of its app for users in the US ahead of a planned sale of the app to a group of investors. The company has developed a plan to launch the new TikTok app, known internally as “M2,” to US app stores on September 5, according to The Information.

This timeline aligns with the current September 17 deadline that President Donald Trump has set for ByteDance to complete a divestiture of its US operations. ByteDance is required to hand over control of TikTok’s US operations by that date, CNN reported.

The urgency reflects the complex technical challenges involved in replicating TikTok’s entire codebase, including AI models, algorithms, features, and user data systems for the American market.

Impact on users and creators

The transition to a TikTok US-only app structure would fundamentally change how America’s 170 million TikTok users interact with global content. Under the new system, American users would primarily see content generated within the United States, as the algorithm would be trained exclusively on domestic user data.

This shift raises questions about content diversity and the platform’s global appeal. The change is expected to impact how 170 million US users access global content and how non-US creators make money on the platform, according to SCMP’s sources.

International creators who have built audiences among American users may find their reach significantly diminished, while US-based content creators could see increased visibility within the domestic market.

The new app would perhaps function similarly to Douyin, TikTok’s China-specific version, creating three distinct platforms: the global TikTok, Douyin for China, and the new US-only version.

Political dynamics and sale negotiations

The separate app development occurs alongside ongoing sale negotiations that have become intertwined with broader US-China trade relations. US President Donald Trump told Fox News in an interview aired on Sunday that he has a group of “very wealthy people” ready to buy TikTok, whose identities he can reveal in about two weeks, CNBC reported.

The proposed buyer consortium includes several prominent American investors. According to SCMP, the consortium, which has emerged as the front runner, includes ByteDance’s current shareholders Susquehanna International Group (SIG), General Atlantic, and KKR, as well as new investors such as Blackstone and Andreessen Horowitz. Oracle is also likely to take a stake.

However, significant hurdles remain. Any deal requires approval from Chinese authorities, who have historically shown reluctance to allow the export of recommendation algorithms. In 2020, when the Trump administration first pushed for a sale of TikTok’s US business, China updated its export control rules to cover technologies such as recommendation algorithms, effectively giving the government a say over any transfer.

Legal and regulatory framework

The app separation strategy stems from the Protecting Americans from Foreign Adversary Controlled Applications Act, passed with bipartisan support in 2024. This legislation required ByteDance to divest TikTok’s US operations by January 19, 2025, or face a nationwide ban.

President Donald Trump has extended the deadline for TikTok’s parent company, ByteDance, to sell the short-form video app to an American owner by another 90 days, NBC News reported—marking the third extension granted.

The law specifically prohibits any ongoing operational relationship between a divested US TikTok and ByteDance, making the creation of a completely separate infrastructure essential for compliance.

Looking ahead: Uncertainty remains

While TikTok’s US-only app development suggests progress toward resolving the platform’s American future, significant uncertainties persist. Beijing’s approval remains the most critical factor, with Chinese officials showing little public indication of their position on the proposed arrangements.

Now, the talks on TikTok’s fate are also part of Trump’s broader trade negotiations with China over tariffs, SCMP noted, highlighting how the app’s future has become entangled with larger geopolitical considerations.

The success of this strategy will ultimately depend on whether the new US-only application can maintain TikTok’s addictive user experience while satisfying American national security requirements. For the millions of American users who have made TikTok central to their digital lives, the coming months will determine whether they’ll need to adapt to an entirely new platform or bid farewell to the app altogether.

The post Will TikTok’s US-only app finally resolve the ByteDance dilemma? appeared first on TechWire Asia.

Yet many organisations are constrained by legacy infrastructure that stifles innovation, introduces risk, and slows response times. Complex architectures, performance bottlenecks and security gaps can turn opportunity into operational burden.

Verizon Business helps enterprises overcome their limitations with a future-ready network approach – flexible, secure, and intelligently adaptive to business needs in near real-time.

Why traditional networks fall short

Conventional network infrastructure was not designed for the complexities of today’s digital environment. As organisations pursue cloud migration, adopt AI tools, and connect distributed teams and devices, legacy systems can struggle to provide the required scalability, visibility and control.

The challenges are technical and commercial. Delayed insights, degraded user experience, and exposure to cyber threats each have bottom-line impact.

“Digital transformation in APAC isn’t just accelerating – it’s diversifying. Businesses are adopting AI, cloud and IoT at different speeds and in different ways, but a common bottleneck is the rigidity of legacy networks,” says Duncan Kenwright, Managing Director, Global Solutions, APAC, Verizon Business.

“Systems were not designed to support dynamic, data-driven ecosystems. That’s where many enterprises are hitting limits – not just in performance, but in their ability to respond to opportunity.”

The adaptive network approach

Verizon’s network solutions reflect a change in philosophy, from static infrastructure to dynamic, intelligent connectivity. At the core is a fully converged, private IP backbone supported by one of the world’s few Tier 1 networks, which gives Verizon control over traffic routing, performance, and resilience.

Key capabilities include:

• Software-defined networking (SDN) for intelligent traffic management and policy enforcement,
• Network-as-a-Service (NaaS) for scalable, use-based consumption,
• Managed Network Services (MNS) that reduce operational overhead for IT teams,
• Secure Access Service Edge (SASE) to protect data and applications in distributed environments,
• Private 5G and edge computing for ultra-low-latency applications in manufacturing, healthcare, logistics and other industries.

With modular components, enterprises can tailor their networks for what they need now and in the future. This could be expanding a secure remote workforce, using AI for quality control in factories, or meeting compliance rules in different regions.

Turning infrastructure into advantage

By aligning network architecture with business objectives, Verizon can help organisations unlock measurable gains in agility, efficiency and customer experience.

• Improved agility: With programmable networks, businesses can respond quickly to changing market conditions, spin up services, or scale capacity with minimal disruption.
• Enhanced security: Verizon’s private backbone and embedded security controls reduce exposure to threats and help support zero-trust frameworks.
• Performance at scale: High-speed, low-latency connectivity supports mission-critical systems, from real-time analytics to robotic process automation.

“We’re helping our customers move from thinking of networks as infrastructure to seeing them as business enablers,” says Kenwright. “The right architecture gives enterprises the agility to pivot quickly, the security to operate confidently and the visibility to make informed decisions. In the AI era, that kind of adaptability is not a nice-to-have – it’s mission-critical.”

Built for APAC complexity

Asia Pacific enterprises face unique network demands, like multi-market operations, complex regulatory environments, and a range of infrastructure maturity. Verizon’s solutions are designed to overcome those challenges.

With operations in Australia, Singapore, Japan and beyond, Verizon provides:

• Regionally distributed infrastructure with global reach,
• Localised support for compliance, data sovereignty, and language,
• Sector-specific expertise in public sector, healthcare, financial services, and industrial operations.

For example, manufacturers deploying machine vision and AI need real-time feedback loops from production line to cloud platform. Verizon’s private 5G and edge solutions ensure data is processed where it’s generated to deliver precision, speed and quality control.

Supporting seamless transformation

Modernisation is usually a process, not a clean break with the past. Many businesses operate hybrid environments where legacy and modern systems need to coexist. Verizon’s network services are built with that reality in mind.

• Phased transformation: Verizon supports incremental upgrades, ensuring operational continuity while new technologies are integrated,
• Co-managed services: Organisations can rely on Verizon to maintain, monitor, and optimise networks while retaining strategic oversight,
• Cloud-native orchestration: Verizon’s platform simplifies network provisioning, scaling, and visibility, giving businesses more control and less complexity.

Flexibility lets enterprises evolve at their own pace, without compromising on performance or security.

Built-in security, end-to-end

Security is central to Verizon’s approach. With its private IP backbone, Verizon can isolate enterprise traffic from the public internet and maintain consistent performance even under pressure.

Core security features include:

• Near real-time threat detection and prevention
• Data loss prevention (DLP) and intrusion detection systems (IDS),
• Support for zero-trust network access and identity-based controls,
• Visibility into cross-border data flows to support compliance and reduce risk.

In a threat landscape where cyberattacks are automated and targeted, having security embedded in the network is essential, not optional.

Infrastructure that moves with you

Today’s business environment requires networks that are more than just fast. They have to be agile, intelligent and secure. Verizon’s adaptive approach lets enterprises establish a network backbone that evolves with their needs, turning challenges into opportunities, and fostering sustainable growth.

Whether your goals include scaling AI workloads, enabling edge analytics, or securing a hybrid workforce, Verizon provides the infrastructure to make it possible.

In an era when milliseconds are critical, your network should not merely keep pace – it should lead the way.

Learn how Verizon can help your business build an adaptive, future-ready network at: Verizon.com/business/en-au/solutions/adaptive-networks.

The post How Verizon helps APAC enterprises build adaptive digital networks appeared first on TechWire Asia.

While retail has taken the lead in terms of its adoption and innovation in loyalty, other industries lag behind their potential in this area. This article will explore challenges in maturity with loyalty programmes in three industries: airlines, fuel and convenience, and quick service restaurants.

Legacy systems keep airline loyalty stuck on runway

One might think of airlines when considering industries where loyalty seems to play a significant role: loyalty has become a well-known aspect of air travel.

Whether you’re a member of Singapore Airlines’ KrisFlyer or earning Lotusmiles with Vietnam Airlines, the basic model is that customers collect points that can be redeemed for reward flights or flight discounts.

There are however challenges in the airline loyalty space that are limiting its true potential. The first issue is delayed rewards due to legacy technology systems. It is very common for flight miles in airlines to be awarded days or even weeks after travel. Possibly the result of legacy technology, these delays create gaps in customer engagement and reduce the perceived immediacy of rewards.

Research suggests that real-time loyalty rewards are associated with higher customer satisfaction. By contrast, the lag in mile crediting has been linked to frustration and reduced programme participation.

As noted in a recent publication by Deloitte, airline technology infrastructure was built decades ago. There is pressure to modernise systems, but there are also many challenges tied to such major transformations.

Airlines that modernise core infrastructure will be better placed to add innovation to their loyalty programmes, unlocking a path to greater engagement, real-time issuance, and AI-powered personalisation.

Disconnected at the pump: Failures in fuel and convenience loyalty integration

Unfortunately, many fuel and convenience businesses’ loyalty programs suffer from limited earn-and-burn models. In these cases, loyalty points are accrued in one system and often redeemed via third-party partners.

In some cases points are only redeemable for fuel discounts, which limits their versatility in the brand. More concerning is when points are only redeemable with a third partner, like a supermarket or an airline. The customers earn points in one ecosystem but must leave that ecosystem to find meaningful redemption value.

In these scenarios the fuel station essentially becomes just a points collection mechanism rather than building deeper engagement in its own brand environment.

A lack of integration combined with non-intuitive reward systems will lead to low participation rates. More sophisticated programmes would offer diverse internal redemption.

It can be done, as one provider from New Zealand has demonstrated. Fuel and convenience chain, Z Energy, recently overhauled its loyalty programme so that it now rewards customers for almost all items purchased by the customer, not just fuel, and points are issued in real time.

The technology backend of the Z Rewards programme was built with the help of Eagle Eye, which powers the instant point transactions with cloud adjudication. The loyalty system is embedded in the digital Z App, which is the stage for more loyalty features to come.

Quick service restaurants: Picking at loyalty fragments

The quick service restaurant (QSR) industry faces an interesting challenge with loyalty programmes. While QSRs serve millions of customers daily and have obvious opportunities for repeat business, many operators remain hesitant to implement advanced loyalty systems.

The primary concern is operational efficiency. QSR businesses are built on speed; customers expect fast service, and any system that might slow down the checkout process faces immediate resistance. This creates tension between building customer loyalty and maintaining rapid service delivery.

The QSR market is also fragmented, particularly in Southeast Asia. Often, each brand develops its own loyalty system, resulting in inconsistent customer experiences and a limited ability to scale technological innovations in the industry. Customers might have multiple QSR apps on their phones, each with different interfaces, earning structures, and redemption processes.

Simplicity and efficiency should be at the heart of loyalty initiatives in this industry. This means easy slick and easy-to-use digital apps, high-speed real-time adjudication and point resolution, and straightforward offers.

Breaking down loyalty tech barriers to drive value

While loyalty programmes in the above industries face distinct challenges, they demonstrate potential.

Airlines struggling with legacy systems, fuel and convenience stores limited by basic earn-and-burn models, and QSRs concerned about operational efficiency all share common ground; they need modern technology that addresses their specific constraints while opening new possibilities.

These are the pain points that Eagle Eye, as a provider of a cloud-native, AI-powered, highly scalable platform for loyalty and customer engagement, is determined to address.

Real-time processing eliminates delays that frustrate customers, flexible architecture enables diverse redemption options, and streamlined integration ensures that operational efficiency isn’t compromised. This modern approach creates opportunities for businesses to build sophisticated loyalty programmes that deliver genuine value.

The retail sector’s progress with loyalty programmes demonstrates what’s possible when technology evolves alongside customer expectations. As other industries embrace modern loyalty platforms, they can move beyond basic point collection to create meaningful, real-time customer relationships that drive satisfaction and business growth.

Author: Aaron Crowe, Regional Director, Eagle Eye, Asia.

About Eagle Eye

Eagle Eye is a SaaS technology company enabling retail, travel, and hospitality brands to earn the loyalty of their end customers by powering their real-time, omnichannel, and personalised consumer marketing activities.

About Aaron Crowe

Aaron Crowe is a professional with more than a decade of experience in strategic consulting and consultative sales. He has led multinational teams and managed diverse projects in various disciplines and businesses.

(Image source: Unsplash)

The post Lagging on loyalty innovation: Unpacking which sectors struggle appeared first on TechWire Asia.

Users of smartphones in areas where there is no network access may have cause for optimism, after the news that Vodafone claims to have made the world’s first video call via the satellite network.

The call was made from an area in the UK with no network coverage to the company’s CEO, Margherita Della Valie.

According to a report from Reuters, Vodafone used AST SpaceMobile’s BlueBird satellites positioned in low Earth orbits to allow the transfer of up to 120 megabits of data per second; enough, in the test, to carry a videophone conversation, like that in common apps like Apple’s FaceTime, Google Meet or Microsoft Teams. In an interview with the news agency, Della Vaile said, “You get everything form voice to text to video data transmission […]. Our objective is to bring the service to our customers as soon as possible.”

The UK-based telco giant aims to launch the technology to its European customers late 2025 through into 2026, connecting rural, mountainous, and less populous areas in the UK and on the mainland continent to the mobile network.

The technology relies on the carrier having a gateway on the ground that receives signals from the satellite network. Message packets are then transferred to the traditional cellular network. Vodafone’s success was notable due to the high volume of data that was transmitted and received concurrently.

Smartphone to satellite for all?

Unlike instances of similar technology such as that found in some Apple handsets, Vodafone claims that the communications capability will work from a standard smartphone, and requires no specialist hardware in the remote area.

There is fierce competition between mobile operators to be first to market with satellite services, each keen to fill the gap in conventional, land-based mobile coverage. At present, smartphone to satellite communication is possible, but traffic bandwidth is highly limited and only handsets with specific, satellite-capable modems can use the facility.

Apple’s iPhone models 14 and later, for instance, offer the ability to send texts in emergencies, provide geolocation data, and send limited data to selected numbers. Later models of phones by Google and Samsung offer similar features.

In the US, T-Mobile and SpaceX are racing to develop technologies similar to that showcased by Vodafone in the UK.

However, Chinese scientists announced the Tiantong project in 2024, which uses the three Tiantong-1 satellites in geosynchronous orbits over Asia. Technology on these satellites combats signal degradation to the extent that they can send and receive signals from smartphones on the ground.

The simpler smartphone future

It is worth noting that the bandwidth available to end-users of any future implementation will almost definitely not be the 120 megabits per second achieved by Vodafone. With stringent contention ratios, it seems unlikely that consumers will be making video calls from the middle of nowhere to loved ones, or watching streamed sports events on their smartphones while in remote areas. But the basics of communications like low-quality voice calls and SMS texts should be more widely available in the next few years.

A time when geographic isolation no longer means lack of communication is drawing closer, giving hope to communities not well-served by current mobile network infrastructure.

The post Smartphone satellite video call brings remote areas closer appeared first on TechWire Asia.

• Apple modem to appear in handsets and iPads next year.
• Less capable than its Qualcomm alternative.
• Slated for use in the company’s cheaper products.

Apple’s long-maintained preference to keep every aspect of its products, both hardware and software, in-house sees the company take the step of slating its own 5G modem for appearance in the next version of the iPhone SE.

Modems are the components that liaise between a phone and the network service provider, usually a telecoms company, providing users with access to data, messaging and voice calls.

Apple currently sources its modems from Qualcomm, a US-based company with which Apple has a dual relationship; both a partner in its supply chain, and competitor – one which Apple has had legal beef with in the past.

To overcome the challenges inherent in designing and manufacturing such a complex element in a cellphone, Apple has hired multiple ex-Qualcomm employees and invested billions of dollars worldwide in research and development. The result is a modem known as Sinope, which is said will also appear in 2025 in lower-end iPads as well as a rumoured lighter, thinner iPhone SE.

Apple modem’s technical details

However, according to a report in Bloomberg, Apple’s Sinope lacks the capability and speed of the Qualcomm equivalent, which will continue to be used in Apple’s higher-end devices. That’s down to Sinope not supporting mmWave technology as used by several carriers in the US and around the world. Instead, the new, low-end devices will rely on so-called Sub-6 standards, which lab tests have shown to be slower in wireless information transfer speeds. Additionally, the Sinope modem supports only four carrier bands (four-carrier aggregation), compared to the six or more supported by Qualcomm modems that also supports mmWave.

Apple has planned for a second-generation modem to be ready by 2026, code-named Ganymede, with support for mmWave technologies providing eight-carrier aggregation, in addition to six-carrier aggregation using Sub-6. There are also plans for a third generation of hardware to appear in 2027 that could offer satellite communication capabilities and (as you might expect given this story’s 2024 provenance) AI capability.

Research and development activities into the next-generation modems and Sinope have been taking place in Munich, Germany and at Apple’s Cupertino headquarters. Sources close to the matter have reported that some staff have been equipped with phones sporting the Sinope modem to provide the company with real-life performance metrics.

The new (historically lower-powered) iPhone SE is rumoured offer a full, edge-to-edge screen, and be thinner than the current iPhone SE. Having a slower, less-capable modem will, the company hopes, not impact the user experience of its new model’s owners, and it seems unlikely that Sinope will appear in the company’s high-end, more expensive iPhone models: Customers paying over US$1000 for a phone tend to be a less-forgiving demographic.

The Apple modem could mean that users suffer from worse connectivity in terms of available networks, and may even have calls drop – the latter a problem that Apple will be working hard to solve between now and the iPhone SE’s launch, early next year.

In 2017 Apple sued Qualcomm in a dispute over Qualcomm’s charges it levied against Apple for the use of Qualcomm patents. In a legal tit-for-tat, Qualcomm attempted to get the sale of iPhones banned in the US, China and Europe because of violations of patents it holds. It’s speculated that Apple’s decision to create its own modem hardware was taken in direct response to the disagreement. Regardless, Apple’s preference for owning as much of its means of production in software and hardware as it can continues.

The post Apple’s modem hardware to debut in 2025 appeared first on TechWire Asia.

China has expanded its renewable energy portfolio with a pioneering floating solar power installation in the Yellow Sea. The one-gigawatt facility, activated by state-owned utility CHN Energy, transforms unoccupied ocean space into a clean energy powerhouse while supporting marine aquaculture beneath its vast solar arrays.

Located off Shandong Province’s coastline, the floating solar power plant stretches across 1,223 hectares of the ocean surface, positioning photovoltaic panels eight kilometres from Dongying City’s shore. The installation’s scale and innovative design mark a significant shift in how nations might approach renewable energy infrastructure in marine environments.

The facility, constructed by CHN Energy’s subsidiary Guohua Energy Investment Co., demonstrates the feasibility of large-scale marine solar installations. When operating at total capacity, the floating solar power system will generate enough electricity to meet the needs of 2.67 million urban residents while preventing the emission of 1.34 million tons of carbon dioxide.

The installation features advanced marine engineering, utilising large-scale offshore steel truss platforms secured by fixed pile foundations. The platforms, designed specifically for open-sea conditions, support the array of photovoltaic panels while ensuring structural stability in the maritime environment.

The project’s power transmission system marks another technical milestone, implementing China’s first 66-kilovolt offshore-to-onshore cable configuration for high-capacity, long-distance transmission in the photovoltaic sector. This infrastructure development paves the way for future offshore renewable energy projects.

According to a company statement, the solar farm’s annual output translates to significant environmental gains, with projected savings of 503,800 tons of standard coal. These metrics align with China’s broader carbon reduction targets and demonstrate the scalability of offshore solar technology.

Maximizing ocean space: the dual-use approach

The project introduces an innovative dual-use model, integrating fish farming operations under the solar arrays. This approach maximises the economic potential of the ocean space while maintaining its ecological function. The combination of aquaculture and energy generation could serve as a blueprint for future maritime infrastructure projects.

Each platform measures 35 meters in width, and the facility employs a 66-kilovolt offshore cable paired with an onshore cable for high-capacity, long-distance transmission – the first such implementation in China’s PV sector.

Impact on global renewable energy development

This installation demonstrates the viability of large-scale offshore solar projects. Key advantages include:

• Efficient use of available ocean space
• Natural cooling effects from seawater, potentially improving panel efficiency
• Reduced land-use pressure on coastal regions
• Strategic positioning near population centres
• Integration opportunities with existing maritime industries

The project provides valuable data for the renewable energy sector, particularly regarding marine-based solar installations’ performance and maintenance requirements. Its implementation offers insights for coastal regions worldwide facing similar energy and land-use challenges.

As coastal nations seek to expand their renewable energy capacity, this project offers a tested template for large-scale offshore solar deployment.

The facility’s operational data will help inform technical standards and best practices for future marine solar installations. Its data insights could accelerate the adoption of offshore solar technology in other regions, particularly in countries with extensive coastlines and growing energy demands.

The post China’s floating solar power plant makes waves with world-first ocean installation appeared first on TechWire Asia.

Following the ban on Temu in Indonesia in October 2024, the Chinese e-commerce sensation’s meteoric rise has hit a regulatory wall in Southeast Asia. The platform, known for its low prices and aggressive marketing, faces mounting resistance from regional regulators determined to protect domestic markets.

The latest setback came from Indonesia, the region’s largest economy, where authorities ordered Temu’s removal from app stores in October 2024. The decision, after the platform’s registration was rejected earlier this year, marks a decisive shift in how Southeast Asian nations are responding to the influx of Chinese digital retail giants, prioritising local merchant protection over unrestricted market access.

Temu’s journey in Southeast Asia tells a compelling story of ambitious expansion meeting regulatory reality. Since its launch in 2022, the platform has successfully disrupted US and European markets. The company then set its sights on Southeast Asia’s burgeoning digital economy. The company began its regional push through the Philippines and Malaysia in 2023 before expanding into Thailand, Brunei, and Vietnam in early 2024.

But the platform’s signature strategy of rock-bottom prices and massive advertising spend has sparked regional regulators’ concerns. Indonesia’s Trade Ministry views Temu’s business model as potentially destructive to its 64 million micro, small, and medium enterprises (MSMEs). 

The country’s response goes beyond just targeting Temu – it has implemented broader measures, including a ban on e-commerce transactions through social media platforms and increased taxation on cross-border digital retail. Vietnam has followed suit, threatening to ban Temu and fellow Chinese e-commerce player SHEIN by the end of November 2024.

Vietnamese authorities cite the platforms’ lack of proper business registration and operational approvals, highlighting the region’s growing scrutiny of unauthorised e-commerce operations. The pushback comes as Southeast Asia’s digital retail market reaches new heights of revenue. 

According to research from Google, Temasek Holdings Pte, and Bain & Co., online spending will rise about 15% this year to $263 billion in the region. The burgeoning middle class with increased disposable income is helping fuel online shopping and e-commerce growth. The massive market potential explains Temu’s aggressive expansion strategy, despite the regulatory headwinds it’s encountering.

Indonesia’s regulatory response has been particularly comprehensive. Beyond the Temu ban, its crackdown on social commerce forced TikTok Shop to acquire a stake in the struggling local platform Goto to maintain its presence in the market. The move demonstrates Indonesia’s commitment to protecting its digital retail ecosystem while ensuring foreign platforms contribute meaningfully to the local economy.

For Temu, whose parent company PDD Holdings (formerly Pinduoduo) has operated successfully in China since 2015, the Southeast Asian regulations present a new challenge. Unlike its relatively smooth expansion in Western markets, the platform must now navigate a complex web of protectionist policies designed to shield local businesses from what regulators view as potentially predatory pricing practices.

The resistance to Temu’s expansion reflects a broader trend in Southeast Asian digital commerce regulation. Countries are increasingly implementing measures to ensure foreign platforms contribute to, rather than disrupt, local economic development. These include:

• Mandatory local business registration,
• Strict tax compliance requirements,
• Consumer protection regulations,
• Data localisation rules,
• Minimum pricing guidelines.

As Southeast Asia’s digital economy continues to evolve, the outcome of Temu’s regulatory challenges could set important precedents for how the region manages foreign e-commerce platforms. The question remains whether Temu can adapt its business model to meet local requirements while maintaining the competitive pricing that fueled its global growth.

For now, Southeast Asian nations appear committed to protecting their domestic digital retail ecosystems, even if it means turning away major global players. Their stance could reshape how international e-commerce platforms approach the region’s promising but increasingly regulated market.

The post Can Chinese giant Temu crack Southeast Asia’s protective wall? appeared first on TechWire Asia.

If something is free, you’re the product. Think about it: how do companies offering a free service make money? Sure, there’s always the hope that by offering a free version of a product, users will like the service so much, they’ll upgrade to a paid-for tier. But that’s a business model that’s not often lucrative – not many free service users upgrade, even when it’s something they use all the time.

Instead of relying on the hope of eventual conversion of customers to paying price tiers, free VPN providers are able to sell information about you on the open data market. In fact, some free VPN providers are quite open about their relationships with data brokerage companies, organisations that buy and sell user data. And it’s worth remembering two things:

• Users of VPNs are more likely to have something they wish to hide, so their details are of higher value than most,
• All data from your devices passes through the VPN providers’ systems, giving them carte blanche to examine online activity.

There are some more mundane reasons, too, why free VPN services might not work as you expect:

• Speed. Slow internet speeds. Free tiers of anything don’t offer the best experience. Free service users will end up sharing a limited amount of bandwidth, so expect traffic to move at a crawl.
• Streaming. Streaming media might not be possible, and if it is, won’t be worth watching. Some VPNs block streaming traffic by default, and those that do allow it will rate-limit throughput, so your experience will be average at best.
• Malware. VPN applications downloaded to your computer or phone need very deep access to your device’s operating system. That’s an open invitation to bad actors to offer an app that includes malware, spyware and ransomware.
• Advertising. One way free VPN providers can monetise is to show you intrusive ads. Normal ad-blockers and browser extensions won’t be able to stop this, so be prepared to be inundated with messages about dubious goods and services.
• Limited options. Free tiers from VPN companies will probably only offer a few ‘virtual endpoints,’ that is, where your connection ‘comes out’ in the world. If you need a connection to appear as if it’s coming from somewhere specific, you may be out of luck. (And don’t forget that most streaming services, for example, block traffic to and from VPN providers as a matter of course.)

Why you should pay for a VPN

Although there are no guarantees that any provider is above board, at least by paying for a service you have some weight with the providing company in the eyes of the law. Issues around speed and bandwidth will – or should – be addressed faster, and you will have some legal recourse in the event of a dispute that’s difficult to resolve.

In some territories, there are also guarantees of money-back if the service provided proves unsuitable. If you were relying on being able to stream media from a different country, for example, and it proves impossible with your chosen VPN service, you can back out of the arrangement.

Paid-for VPNs typically offer their customers more endpoints, so users have many more options at their disposal to experiment with, plus features like split-tunnelling (choosing which apps use the VPN and which don’t) become available options. Plus, you should get better connection speeds and much less traffic throttling (slow-downs) at peak times.

The final point to note is that choosing a VPN you’re willing to pay for gives you more choice, so you can pick the provider whose features you want, rather than being constrained by the few free VPNs that you can get to work in your circumstances.

Do you really need a VPN?

If your issue that a you hope a VPN might cure is personal or business data privacy, there are many other ways to ensure your data stays secure, before you part with any cash for a VPN service.

Companies like Microsoft (Windows and Office 365) and Google (Chrome, Maps, Search etc.), social media platforms, plus most popular websites already collect data about you and your organisation. These processes will continue whether or not a VPN is active. Additionally, your mobile provider in the case of phones or ISP (internet service provider) will likely have access to, at least, a list of everywhere on the internet you connect to (through looking up resource names, like ‘secret-website.com’ on your behalf).

VPNs provide some protection and extra freedom when using captive wi-fi (such as in a hotel) or when using public wi-fi networks, like in your local coffee shop. But the vast majority of internet traffic today is encrypted, so without a specific use-case, using a VPN – free or paid – might be more than you really need.

Final thoughts

VPN providers that advertise paid-for services are businesses that are subject to the rule of law. In most countries, law-enforcement can force them to produce log files from their systems that show all connections that are made to and from their platforms. In just a few cases, VPN companies don’t keep those files for more than a few seconds, but it’s nearly impossible to determine which those providers are, as such information is private and rarely available to see.

The ‘safest’ VPN is one that you build yourself, using – for example – a Virtual Private Server (VPS) from a public cloud company, and installing the required software, such as OpenVPN or Wireguard. But that’s beyond the scope of this article!

If you need a VPN, be sure of why you need it, and be prepared to pay for the service if you do.

The post If you use a VPN, you should pay for it appeared first on TechWire Asia.

The European Commission has launched a formal investigation into the popular Chinese e-commerce platform Temu, marking one of the first significant enforcement actions in the EU under the Digital Services Act (DSA). The probe, announced on October 31, 2024, centres on concerns ranging from selling illegal products to potentially manipulative platform design features that could harm consumers.

Temu’s meteoric rise in the European market since its launch in April 2023 has caught regulators’ attention. The platform, which was designated as a Very Large Online Platform (VLOP) on May 31, 2024, reported a staggering 92 million monthly users as of September 2024—more than double the 45 million threshold required for VLOP status. The rapid expansion has brought increased responsibility under the DSA’s stringent regulations.

Key areas of investigation

The Commission’s investigation will focus on four primary concerns:

1. Product compliance and seller verification

The investigation focuses on Temu’s system for preventing the sale of non-compliant products in the EU. Regulators are concerned about the platform’s ability to prevent suspended rogue traders from returning to the marketplace and stop the reappearance of previously identified non-compliant goods.

2. Addictive design features

The Commission will scrutinise Temu’s game-like reward programs and other potentially addictive design elements. There are concerns that these features could negatively impact users’ physical and mental well-being, raising questions about the platform’s responsibility for protecting consumer interests.

3. Recommendation systems

The EU investigation will examine how Temu recommends content and products to its users. Under the DSA, platforms must be transparent about their recommendation algorithms and provide users with at least one easily-accessible option that isn’t based on personal profiling.

4. Research data access

The Commission is also investigating whether Temu has met its obligations to provide researchers access to publicly-available platform data, an essential requirement for transparency under the DSA.

Regulatory framework and potential consequences

If the Commission’s suspicions are confirmed, Temu could face significant consequences for violating Articles 27, 34, 35, 38, and 40 of the DSA. Executive Vice-President for Europe Fit for the Digital Age, Margrethe Vestager, emphasised the importance of compliance, stating, “We want to ensure that Temu is complying with the Digital Services Act. Particularly in ensuring that products sold on their platform meet EU standards and do not harm consumers. Our enforcement will guarantee a level playing field and that every platform, including Temu, fully respects the laws that keep our European market safe and fair for all.”

The road ahead for Temu in the EU

The Commission’s investigation follows preliminary analyses of Temu’s risk assessment report, dated September 2024, and responses to formal information requests made in June and October 2024. While the investigation has no set deadline, the Commission has indicated it will be treated as a priority.

The probe doesn’t automatically indicate guilt, and Temu will have the opportunity to address the concerns through committing to remedy issues. The investigation will involve gathering additional evidence through information requests, monitoring actions, and interviews.

Th investigation represents a significant test of the DSA’s enforcement capabilities and could set important precedents for other online marketplaces operating in the EU. It’s worth noting that the Commission’s action doesn’t preclude separate enforcement measures by national consumer protection authorities or market surveillance bodies, particularly under the upcoming General Product Safety Regulation, which takes effect on December 13, 2024.

The case against Temu demonstrates the EU’s commitment to enforcing its digital regulations and ensuring that rapid business growth doesn’t come at the expense of consumer safety and any platform’s responsibilities to its customers. As the investigation unfolds, it will likely serve as a benchmark for how the DSA can be used to regulate large online platforms and protect European consumers in the digital marketplace sector.

The post EU vs Temu: shopping platform faces safety investigation appeared first on TechWire Asia.

The recent Brazilian lawsuit against Meta, TikTok, and Kwai marks the latest chapter in an intensifying global scrutiny of social media platforms’ responsibility to young users. Brazil’s Collective Defense Institute’s demand for three billion reais ($525 million) in damages through two filed lawsuits underscores the growing impatience with what critics see as inadequate youth safety measures.

“Brazil’s Collective Defense Institute, a consumer rights group, has filed two lawsuits demanding 3 billion reais ($525.27 million) from the Brazilian units of TikTok, Kwai and Meta Platforms for allegedly failing to create mechanisms to prevent indiscriminate use of these social media platforms by minors,” Reuters said, according to initial petitions reviewed by the news agency.

This action comes at a particularly charged moment for social media regulation in Brazil. The country has recently demonstrated a willingness to confront tech giants, as evidenced by its high-profile clash with X (formerly Twitter) and its owner Elon Musk, which resulted in substantial fines. 

The regulatory environment and similar challenges emerging worldwide point to a systemic issue in how social media platforms approach user safety, particularly for minors.

A track record of concerns

Meta’s internal documents from 2021 revealed a troubling reality: over 100,000 young users faced daily harassment on its platforms. Despite clear evidence of harm, Meta’s leadership reportedly resisted implementing algorithmic changes that could have addressed the issues.

The state of New Mexico’s lawsuit against Meta in late 2023 brought concerns into sharp focus. The legal action specifically targeted Facebook and Instagram content delivery systems, alleging they exposed minors to inappropriate content despite public assurances of safety measures.

Global momentum 

The reality is that pressure on social media platforms has become increasingly coordinated and widespread. US Attorney Generals have joined the fray with legal actions against TikTok, challenging the platform’s public claims about youth safety. The actions reflect a growing consensus among regulators and child safety advocates that current protection measures are insufficient.

Brazil’s legal action introduces a significant international dimension to this push for accountability. The lawsuit’s demands go beyond monetary compensation, seeking structural changes in how platforms operate for young users.

The global nature of the challenges presents an opportunity and complexity. While it demonstrates widespread recognition of the problem, it also highlights the complications of implementing practical solutions across different legal jurisdictions and cultural contexts.

As the legal challenges unfold, they will continue to set important precedents for how social media platforms are required to protect young users. The consistent thread through these cases is the demand for proactive rather than reactive measures – suggesting that the era of self-regulation may be drawing to a close.

The financial penalties sought, while substantial, appear secondary to the broader goal of forcing fundamental changes in how social media platforms approach youth safety. Whether through algorithm modifications, enhanced content filtering, or stricter age verification systems, the pressure is mounting for concrete, verifiable improvements in youth protection measures.

The post Brazil slaps Meta and TikTok with $525M lawsuit in latest youth safety battle appeared first on TechWire Asia.

The Indonesian Ministry of Industry has said that Google’s Pixel phones can’t be bought by Indonesians from domestic retailers because the US company does not ensure 40% of their ‘content’ comes from Indonesia. Content can comprise firmware or some form of investment in the local population, as well as the physical components of a phone. Spokesperson Ministry Febri Hendri Antoni Arief said, “The local content rule and related policies are made for fairness for all investors that invest in Indonesia, and for creating added value and deepening the industry structure here.”

The most recent ban follows on from a similar limit on sales of Apple’s iPhone 16 placed in late October this year. Both bans also apply to phones used by tourists and visitors to the country.

Apple iPhone and Google Pixel ban

Apple had promised to invest $109 million in local infrastructure, including educational initiatives, but to date has only committed $95 million. According to Statista, $109 million is accrued in revenue by the Cupertino, California-based company roughly every ten hours, with the required shortfall of $14 million taking about an hour and a quarter’s global income.

Apple Academies – Apple’s choice of Indonesian investment – train students in the use of development tools and methods used to produce software for the company’s devices that run iOS, macOS, tvOS and iPadOS.

Companies wishing to sell their consumer tech devices have to seek certification from the Indonesian government, having proved that they are ploughing money into the local economy. How that investment is manifest is agreed between the Indonesian authorities and the company in question.

Korea’s Samsung and China’s Xiaomi have created manufacturing and assembly plants in Indonesia, and currently, Samsung holds 16.5% of the Indonesian handset market. Mi phones from Xiaomi comprise 18.4%, according to statistics from Counterpoint.

As part of the same survey, Counterpoint’s senior analyst, Febriman Abdillah, stated that there is particular demand in Indonesia for mid-range phones ($200-$399) at present, a bracket that excludes Google and Apple’s offerings other than as luxury items.

The Indonesian government implements its embargoes by means of withholding IMEI certifications for new handsets. That has the effect of making phones impossible to use with a domestic carrier for data, calls or texts. Phones could still operate as wi-fi-only devices – potentially an option for tourists entering Indonesia with a new device. Given the strictures in place at present, however, the government’s edicts have effectively stopped all sales to the domestic market.

Both Apple and Google can still qualify for the necessary certifications to re-open trade in the country, but at the time of writing, neither company had commented on the developing situation. Apple’s Tim Cook visited Indonesia in April 2024 as part of the negotiations over Apple’s inbound investment, but the company’s shortfall means that it, like Google, exists in a state of limbo with regards handset sales. Google’s ban comes just days after that affecting Apple, showing that the Indonesian government is sticking to the letter of its edicts, even if US technology companies are not.

The post Indonesia blocks sales of latest Pixel and iPhone models appeared first on TechWire Asia.

Following an agreement in April 2022 between the Motion Picture Association (MPA) and the Intellectual Property Office of the Philippines (IPOPHL), several sites using the SFlix and MyFlixer domains have been blocked in the last week by the country’s site-blocking programme aimed at parties disseminating pirated media.

The Motion Picture Association is a industry body based in the US comprising movie studios and relatively new members Netflix and Amazon Prime Video, who joined the Association in 2019 and September 2024, respectively.

The Philippines’ site blocking programme officially launched in January 2024, and means that movie piracy sites engaged in contraventions of domestic Philippines copyright laws can be blocked voluntarily at local level by ISPs (internet service providers) without needing a court order. Several sites were blocked in May 2024 (PDF) after a review of their activities by the IPOPHL’s IP Rights Enforcement Office.

The two latest targets, SFlix and MyFlixer, occupy several TLDs (top level domains) and access to them has been blocked after complaints from the rights-holders as represented by the MPA..

“A thorough examination of the evidence presented and the evaluation report submitted reveals that all the cited websites are hosting pirated versions of movies or TV shows, allowing users to access these illegal copies by downloading or streaming them,” the IPOPHL said in a statement.

Movie piracy measures in detail

The complaint cited several items, including Top Gun: Maverick and Jumanji: The Next Level as among the material being distributed over six domains; “a small, non-exhaustive sample of the widespread infringement,” the submission to the IPOPHL said. ISPs taking part in the blocking include Globe Telecom, SkyCable, and DITO.

The anti-piracy section of the MPA, the ACE (Alliance for Creativity and Entertainment), has provided technical training and equipment to IPOPHL in the past, to help it develop the necessary facility to prevent access to sites IPOHL wishes to act against, including methods such as DNS and IP address filtering and blocking.

Copyright holders such as Hollywood studios and streaming services, as well as trade bodies like the MPA, also continue to lobby search engines to get sites they claim infringe their intellectual property de-listed from SERPs (search engine results pages), with de-indexing taking place in specific countries from 2022. The COVID epidemic saw a large rise in instances of piracy, with the Philippines quoted as being a country where media piracy has taken place on a large scale since.

In a posting on the Office of United States Trade Representative website (PDF) from the MPA dated October 28, 2021, the industry body stated “[…] the Philippines has been known to serve as a safe haven for some top piracy websites.”

A YouGov survey commissioned by the Coalition Against Piracy (another trade body, one that represents content creators and media distributors in Asia) stated that 61% of consumers in the Philippines admitted to using pirate media services in 2022, up from 49% two years previously.

While the opaque nature of actions taken to block sites and remove search engine listings worries some campaigners, the resulting blocks are quicker to be implemented than those progressing through legal channels.

In a paper (PDF) published by the Office of the United States Trade Representative in 2022 detailing “Foreign Trade Barriers”, the Philippines is detailed in general terms as follows:

“Corruption is a pervasive and longstanding problem in the Philippines. […] Both foreign and domestic investors have expressed concern about the propensity of Philippine courts and regulators to stray beyond matters of legal interpretation into policy making, as well as the lack of transparency in judicial and regulatory processes.”

The post Philippines fights movie pirates appeared first on TechWire Asia.