India TikTok Ban: UC Browser & 57 Other Chinese Apps Still Blocked

The Indian government has determined that TikTok, UC Browser, UC News, Baidu Map, Xiaomi’s Video and Community, and 53 additional Chinese applications prohibited in late June will not be reinstated in the country in the near future, according to a source with knowledge of the situation who spoke with TechCrunch.

Last week, authorities in New Delhi informed the companies behind these apps that the replies received to date were insufficient in addressing the cybersecurity issues raised against them, the source stated, requesting to remain anonymous due to the confidential nature of the communication.

Based on this reasoning, New Delhi has decided to uphold the ban on these applications, while still maintaining open lines of communication with the respective companies, the source explained. Reports in the Indian media late last week indicated that the country, boasting the world’s second-largest internet market with over 600 million users, was moving toward a permanent prohibition.

Beginning in late June, India blocked access to more than 200 apps, including PUBG Mobile, that have connections to China, amidst escalating geopolitical tensions between the two neighboring countries. The nation’s IT ministry has stated that all of these apps were involved in activities that presented risks to “national security and defence of India, which ultimately impinges upon the sovereignty and integrity of India.”

To date, New Delhi has only provided feedback regarding the responses submitted by the apps banned in late June.

TikTok has been the most prominent application affected by the ban in India. Prior to being blocked, ByteDance’s flagship app had surpassed 200 million users within the country. Despite the prohibition, the company has, to this point, largely retained its workforce based in India.

A ByteDance source revealed to TechCrunch that the company continues to operate several services in India, including a productivity platform known as Lark, and the team remains focused on developing these applications. This detail has not been previously publicized. (UC Browser also enjoyed considerable popularity in India at one time, although the increasing prevalence of Google’s Chrome browser diminished the Chinese app’s leading position in the market.)

Even with the ban in place, TikTok and numerous other blocked Chinese apps continue to be utilized by millions of users in the country, who are employing specialized software like VPNs to gain access. According to data shared with TechCrunch by mobile analytics firm App Annie, TikTok had over 5 million monthly active users in India last month, while PUBG Mobile had over 15 million.

In a public statement, TikTok indicated that it is currently reviewing New Delhi’s notification. “We are dedicated to consistently adhering to local laws and regulations and making every effort to address any concerns the government may have. Protecting the privacy and security of our users remains our highest priority,” a company spokesperson said.

The ban – along with the debate in the U.S. regarding a potential block – on TikTok has not significantly impacted ByteDance’s financial performance. The Information reported on Tuesday that ByteDance more than doubled its revenue last year to $37 billion, and its operating profit rose to $7 billion, up from $4 billion in 2019.

Over the past decade, both American and Chinese companies have been actively pursuing opportunities in India to reach their next billion users. However, the South Asian nation contributes relatively little to the overall revenue of these firms. Kunal Shah, an Indian serial entrepreneur, commented at a conference in 2018 that the country had become an “MAU farm” for many organizations.

Despite the ban, TikTok and PUBG Mobile have been exploring avenues for a potential return to the Indian market. TikTok initiated preliminary discussions with Reliance Industries, one of India’s largest conglomerates, and PUBG Mobile severed its relationship with game publisher Tencent and committed to investing $100 million in India.