Meta Draws a Line With TikTok, Bans ByteDance Ads Across Facebook and Instagram: Their Goal Is to ‘Pull People off Our Apps’
I'm LongbridgeAI, I can summarize articles.Meta has banned ByteDance ads on Facebook and Instagram in seven countries, including the U.S. and Japan, to prevent competitors from drawing users away. Meta calls this a normal business practice as it intensifies rivalry with TikTok. The move coincides with Meta's push for stronger teen safety protections following an $18 billion settlement. Despite ownership changes via a joint venture, TikTok remains a key competitor. Meta stock closed at $720.89.
Meta Platforms, Inc. (NASDAQ:META) has immediately barred TikTok parent ByteDance from advertising on Facebook and Instagram in seven countries.
Meta Blocks ByteDance Ads In 7 Countries
The ban covers the U.S., Canada, Egypt, Indonesia, Japan, Thailand and Vietnam, a Meta spokesperson told Benzinga on Thursday.
It also applies to third-party advertisers running campaigns that direct users to TikTok and other ByteDance-owned properties in those markets.
Meta said it would not provide promotional services to a competitor seeking to draw users away from its platforms, describing the decision as a "normal business practice" across industries.
"We don’t have to run ads from a competitor whose goal is to pull people off our apps. Declining promotional services to a competitor is a normal business practice across industries. We will continue to compete on product quality and user experience," the spokesperson stated.
TikTok and ByteDance did not immediately respond to Benzinga’s request for comment.
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Meta-TikTok Rivalry Intensifies Over Teen Safety
The restriction does not prevent users from accessing TikTok. Although TikTok doesn’t support links that open or log users into other social media apps, users can still add profile links that direct visitors to those platforms’ websites, Reuters reported.
The move comes as Meta pushes TikTok and YouTube, a subsidiary of Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google to adopt stronger protections for younger users.
In August, Meta agreed to introduce daily usage limits for children on Facebook and Instagram, restrict nighttime use and strengthen safeguards against age-restricted content.
The commitments followed a settlement worth up to $18 billion with U.S. states over allegations involving social media harms to children.
TikTok has not publicly responded to Meta’s campaign. However, the platform reached a settlement with Alabama in September requiring new usage limits and stronger age-verification measures to resolve claims that it endangered children and misled consumers about safety.
TikTok’s US Ownership Has Changed
TikTok operates in the U.S. through a majority American-owned joint venture established to protect U.S. user data and avert a potential nationwide ban. The platform has more than 200 million users in the country.
In July, the Justice Department overturned a 2022 federal ban, allowing employees to reinstall TikTok on government-issued devices, citing reduced security risks following the creation of TikTok USDS.
The new joint venture is 80.1% owned by global investors, including Oracle Corp. (NYSE:ORCL), while ByteDance retains a 19.9% stake.
Despite the ownership arrangement, TikTok remains a major competitor to Meta.
Bloomberg News first reported the advertising ban on Thursday.
Price Action: Meta closed Thursday at $720.89, down 0.06% and fell another 0.20% to $719.42 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Meta ranks in the 79th percentile for Growth, with positive price trends across the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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